Claiming credit card rewards lets you make the most out of your card, enabling you to strike attractive deals on your everyday spending. Find the right card that meets your lifestyle needs, and you’re good to go! That said, being strategic when redeeming your reward points is crucial to maximise your benefits.
And to make that possible, it is important that you delve into the nuances of your card’s reward options, bonus offers and redemption possibilities. Here’s a quick snapshot of 8 different ways that can help you unlock the full potential of your credit card rewards.
Select a Card that Matches Your Spending Preferences
With all the vital details available online, finding the right credit card is just a search away. Consider these tips and tricks to choose the best option:
- Identify the categories where you shop the most and understand your everyday spending pattern.
- Remember, rewards vary depending on the card you choose, including cashback, discounts, and vouchers.
- Some cards also offer boosted rewards on select spending categories.
- Choosing a card with a reward structure matching your spending preferences allows you to maximise your savings.
- It would be best to get a cashback card if you don’t tend to spend heavily in one category.
Earn Your Welcome Bonus
Credit card companies offer introductory benefits if you meet their specific requirements for opening an account. In most cases, they require you to spend a minimum amount in the first few months to get these benefits.
It’s in your best interest to read the credit card agreement and terms so that you can qualify for these benefits. Some of the common welcome bonuses include cashback, higher reward points, and discount offers with select merchants.
Track Your Rewards
Did you know tracking your credit card rewards helps you strategize and optimise your savings? Yes, you read that right! Follow this simple hack and make the best use of your card.
If you own multiple cards, compute how much you earn through each one. Another important aspect of tracking them is to know when they expire. For instance:
- The reward points on general credit cards don’t expire until you keep the card.
- However, miles or points on hotel and travel credit cards have a fixed validity.
Know the Value of Points
For better planning, convert the value of your points or miles in currency terms. It would help you make the best redemption decisions. Some card rewards have a standard value. For instance, 10,000 reward points may be worth ₹1,000.
However, other credit cards may not offer points with concrete value in actual money. Your benefits on these cards can be subjective to your spending patterns.
Time Your Large Purchases
A crucial aspect of optimising your rewards is strategically timing your big-ticket expenses. Consider these aspects:
- You can apply for a credit card to enjoy a welcome bonus before shopping big.
- Also, time such expenses to coincide with the quarterly bonuses.
- Knowing the timing of these quarterly credit card offers can help you maximise your points or miles earnings.
Explore Various Redemption Offers
Visit the rewards page of your credit card company’s portal to check the redemption process. Simply redeem your rewards in the following ways:
- For cashback, you can choose from statement credit or direct deposit.
- If you’re earning miles, redeem them for discounts on hotel stays, air ticket fares, and other benefits.
That’s not all. There’s another factor to consider when redeeming your reward points. Some credit card companies also charge a fee for reward redemption. So, opt for an issuer who doesn’t charge an additional fee on your reward earnings.
Pay Your Bills on Time (In Full)
The saving purpose of a credit card gets defeated if you carry forward a revolving balance every month. As this accrues interest, missing your credit card bills can result in a high debt.
Here’s how you can pay your bills on time:
- Set up reminders and auto-pay facilities to avoid delays in your credit card bill payments.
- Use your credit card as long as you can pay the entire monthly bill.
- Establish a budget, stick to it, and track your spending closely to plan future expenses.
Look for Occasional Big Deals
Most credit card issuers partner with big merchants across the country. Credit cards run offers on purchases from these select brands occasionally. Watch out for such offers to make the most out of these deals:
- The validity of these credit card offers is for a limited period only.
- The discounts are generally over and above the benefits that merchants may already be offering.
Credit cards are powerful financial tools that allow you to earn rewards and save money on your everyday expenses. However, you need proper strategies to utilise their rewards programme effectively and augment your savings.
Keeping these in mind, get the One Credit Card to enjoy 5X rewards on the top two spending categories and get attractive credit card offers on shopping and dining. Using its powerful mobile application, you can easily redeem your reward points and set budgets at no additional cost. Apply now to enjoy these exclusive perks!
