How to Maximize Points on Credit Cards?

Credit Cards have emerged as one of the most popular financial products of present times. They are like an instant Personal Loan with which you can avail the credit facility up to the pre-sanctioned limit approved by the issuing bank. You only need to pay interest against the amount that you have used while the unused limit does not attract any charges.

The major reason behind the ever-increasing popularity of Credit Cards is the ease and convenience that they offer. You can make purchases or payments online as well as at retail outlets even if you do not have sufficient funds in your account. Such is the popularity of Credit Cards that most individuals have one or multiple Credit Cards.

Most Credit Cards come with a pre-approved cash limit that allows you to withdraw cash in case of emergency. Amongst various other benefits of Credit Cards is the opportunity to earn reward points. These rewards points can be redeemed to earn various discounts and offer on your purchases.

About Reward Points on Credit Cards

Every bank has a reward points system in place for different types of Credit Cards offered by them. For instance, SBI Cards has introduced different reward point schemes for different Types of SBI Credit Cards. You can earn reward points on your Credit Cards by performing specific transactions, online as well as at retail outlets. These reward points offer you benefits over and above the various discounts, and cashback offers applicable on transactions. Reward points are accumulated in your Credit Card account and can be redeemed at partner stores to avail various offers.

Though you must note that, Reward Points come with an expiry date, i.e., if you do not use the accumulated Reward Points by a certain time, they will lapse. In such a situation, you stand to lose significant benefits. Therefore, you must ensure that you use the Reward Points before they expire. Well, in order to maximize the utility you can get from your Credit Card, you must strive to maximize your reward points.

Here are some tips to help you maximize your Credit Card reward points:

Select Credit Card(s) based on your lifestyle

Every individual has a different lifestyle, and the requirements vary accordingly. With multiple Credit Cards being offered by banks, you must select one which meets your lifestyle needs. For instance, if you are a frequent traveller, use a Credit Card that offers maximum Reward Points on travel booking and hotel booking. This will require you to undertake some research and compare different types of Credit Cards to shortlist the one which meets your expectations. If necessary, you can apply for two or more Credit Cards that offer extra bonus points on specific transactions. Nowadays, with increasing competition, Credit Card companies are offering excellent offers and benefits. So, quick research can help you maximize your reward points effortlessly.

Pick the right time

You might not know that, but there are right or wrong times to Apply for a Credit Card. By timing your signing up perfectly, you can earn substantial reward points of up to Rs. 15,000. Credit Card companies release limited period offers where you get bonus Reward Points on signing up for their Credit Cards. So, in order to maximize your RPs, you must keep an eye out for bonus offers from Credit Card companies and apply when the benefits on offer are maximum.

Use reward points regularly

Reward points that you earn against your Credit Card comes with an expiry date. So, you must keep a close watch on your Reward Points and their expiry date and make sure you use them before the last date. Moreover, using the Reward Points early makes sense because with every year the Reward Points required for particular offers keep on increasing. As a result, if you wait for too long, you might end up losing almost 20% benefits.

Check online portals

In addition to the official rewards website of the Credit Card issuer, you can redeem your Reward Points at various online platforms to avail cashback offers. You can redeem these points for booking tickets, hotels or buying electronics at discounted prices. As the redemption system might vary across the portals, you must do some research beforehand to identify the most suitable option for you.

Identify bonus opportunities

Banks offer Credit Card bonus on specific occasions that allow you to maximize your reward points. Seasonal categories like travel or hotel allow you the best opportunities to earn bonus Reward Points on making a booking during lean seasons. For instance, different types of SBI Credit Cards offer you additional reward points when you make hotel bookings or flight booking during the off-season. Though, you must register yourself with the bank to receive these offers.

Maximize purchases during the interest-free period

Most Credit Cards come with an interest-free period of up to 50 days. This is the period between the first day of the billing cycle and the payment due date. Though, in order to avail the interest-free period, you must repay the entire amount due before the last date. You can leverage this interest-free period to maximize your Reward Points smartly. Make big purchases in the starting few days of the billing period to earn maximum points and enjoy up to 50 days of the interest-free period as well.

Situational awareness

You must ensure that you use the right Credit Card for the particular transaction. By mixing up your Credit Cards and using them without proper thinking, you can lose out on opportunities to earn more reward points. So, make sure you use only the most suitable card for a particular transaction.

Reward points offer you an incredible opportunity to maximize the benefits you can enjoy against your Credit Cards. But you must not get carried away as it is very easy to overspend on your Credit Cards and end up with high-interest debt.