How to Avail Maximum Benefits and Cashback on Your Credit Cards?

Updated on: 02 Jan 2024 // 4 min read // Credit Cards
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We live in a country, which is progressively becoming a cashless economy implying that our dependence on Credit Cards as well as other modes of cashless payments will be on an unprecedented rise. While most other payments methods such as online transfers, debit card payments, and other, Credit Cards, on the other hand, let us use the money that we don’t have to pay right away, while also offering us some other benefits. Below mentioned are some ways which can prove to be extremely helpful in earning reward points, air-miles, cashbacks as well as discounts!

Look for Sign-Up Bonus

A vast majority of Credit Card companies offer amazing deals on getting new cards, such as bulk reward points, waiver on the annual fee, and additional rewards on spending a stipulated amount within the first few months of activation. Hence, when you need a new credit card, make sure you look out for such offers, and enjoy your Credit Card benefits to the maximum.

Pick a Card with Maximum Benefits

While looking for a Credit Card, make sure to analyse your spending habits, and choose a card that offers the maximum benefits on those. For instance, if you travel frequently, it will be in your best interest to choose a card that offers flyer miles. On the other hand, if you are an avid shopper, picking a card that offers cashbacks on retail spends will work in your favour.

Spend Categorically

Most cards are designed to suit your spending habits. Hence, if you have a card that offers additional discounts on entertainment options such as dining at restaurants and watching movies, make sure you pay for these activities using your card. Make it a point to go through and remember the categories where using your card can help you earn rewards points, discounts, and cashbacks, and spend accordingly.

Shop Online

A large number of modern-day Credit Cards offer additional cashbacks on online shopping through select portals and websites. Check if your card offers such benefits, and shop at the designated e-commerce websites to maximise your returns.

Also Read: Best Credit Cards for Shopping

Pay Day-to-Day Bills

When it comes to paying phone bills or buying groceries, make sure to use your card. Not only will it help you accrue reward points for additional spending, but will also help build a better credit score, if you pay the balance within the due dates. Additionally, this will help you keep a tab on your expenses.

Use Your Card Judiciously

In order to continually benefit from your Credit Card, it is essential that you use it responsibly, and pay all your outstanding dues well within time. Carrying forward the balances will not only accrue interest, but will also harm your credit scores in the long run. Besides, the interest will preside over the benefits, thus increasing your overall expenditure.

Have Multiple Credit Cards

Since most Credit Cards have an upper limit pertaining to the number of reward points that you can earn in any given billing cycle, it is better to have more than one card. Besides, it will prove to be helpful in reducing your overall credit utilisation ratio, while also helping you earn benefits on different aspects of spending. For instance, one of your cards can help you earn returns on shopping, while the other can earn flyer-miles for you.

Of course, you should only opt for multiple cards, if you can exercise apt financial discipline, and pay all your bills on time.

Use Your Reward Points Timely

Simply earning the reward points will not help you, unless you use them well within time. Most reward points tend to expire after a few months. Hence, make sure you keep track of the expiry date, and redeem the points while you still can.

Use Your Interest-Free Period Aptly

Credit Cards are designed in a way that you can enjoy an interest-free credit period on all your spending. This period often falls in the range of 15-50 days, implying that you don’t have to pay any interest on your spending, from the date of your transaction to the due date of your bill payment. Hence, make sure you time your bigger spends at the very start of your billing cycle, so that you have ample time on your hands to pay the bill without letting it accrue any unwanted interest.

If you have multiple cards, make sure to toggle your spends amongst them, such that you enjoy the maximum-interest free period on all your cards.

Pay the Entire Balance

In times of cash crunch, it can prove to be rather tempting to simply pay the minimum balance on the due date, and leave the balance for a later date. While this may save you from the late fee penalty, you will still be required to pay the interest on the outstanding amount which will often be n the range of 32-45% per annum. Moreover, these deferred payments will increase your financial burden over the time. Hence, the best way to Enjoy Maximum Benefits on Your Credit Card without any repercussions is to pay the entire balance for every billing cycle.

We hope that you are now aware of some of the simple yet compelling ways to enjoy the maximum benefits on your credit card. So, wait no more before you start looking for a card that best suits your spending habits, and start accumulating reward points, cashbacks, flyer miles and more!

Also Read: Best Credit Cards to Get Fuel and Utility Bills Benefits

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