How to Maximize Rewards with Your Credit Card?

Last Updated : Dec. 27, 2024, 5:10 p.m.

Credit cards make each and every spend of yours valuable. They enable you to save on your expenses through rewards across various categories like dining, travel, shopping, fuel, etc. Rewards can be in the form of reward points, cashback, loyalty points, transferable rewards, and bonuses. Reward programs have been introduced of late by many credit card issuers. These programs are designed in such a way that the more money you spend, the more reward points you will earn. Most of these reward points accrued can be redeemed against multiple categories like flight bookings, air miles, products from the rewards catalogue, e-vouchers, and much more. Let us now read about how rewards can be maximized with your credit card.

Tips to Maximize Rewards Using Your Credit Card

• Find the Right Card

Now this means that you have to find a card that aligns with your spending habits. For example, if you are a person who travels abroad often for business, then you should go in for a card that gives you maximum rewards on flight bookings, hotel bookings, international shopping, etc.

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• Learn to Spend Judiciously to Earn Those Rewards

When you spend money just to get rewards, you will end up exceeding your budget. Reward points are provided to promote the use of credit cards among people. But, when your focus is only on reward points, you will end up overspending. Learn to spend judiciously so that you do not burn a hole in your finances. Using rewards on your everyday spends like groceries, fuel etc. can be helpful in accumulating reward points rather than spending high on online shopping, dining, etc. Doing this will not only help you maximize rewards using your credit card but also save. It is essential to keep track of how much money you spend across different categories like groceries, travel, utility bills, shopping, etc. In this way, you will know where your money is going and where you will have to improve next.

• Read and Understand the Terms and Conditions

Visit the website of your credit card provider from time to time and keep yourself updated about the rewards programs and the terms and conditions related to them. You must also know about the categories of rewards available and against which you can redeem these reward points. Also, know about the validity of these reward points. They have an expiry date and should be redeemed before that.

• Utilize Offers and Schemes

Credit card companies often run festive and limited time offers. You may then receive targeted emails that entice you to spend. These offers provide accelerated rewards, and utilizing them will help you maximize rewards with your credit card. However, it is ideal to research about the offer before taking action instead of just reading about it and jumping to conclusions. This is because the offer may be available to other users in the market also.

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• Reach Threshold Spending Limits

Credit cards often give reward points on reaching milestone spends. So, if users want to maximize rewards with their credit cards, they must strategize their spends in such a way that they reach the spend threshold. While spending, users must keep track of how much they have spent and how much is left to reach the spend threshold.

• Be Regular with Your EMIs

Pay EMIs regularly if you want to maximize rewards with your credit card. This is because if outstanding debt is accumulated, then the debt may outweigh the rewards.

• Capitalize on the Sign up Bonus

Using the sign up bonus will help you maximize the rewards on your credit card. Apply for a credit card only when you have planned your expenses since that will help you to get to the minimum spends required for sign up bonuses. This minimum spend amount will vary from card to card. In many cases, you can reach the minimum spends with your day to day purchases. However, in some scenarios, reaching the minimum spend amount will require some effort.

So, planning is very important. For instance, whenever you have a big purchase coming up like a home renovation, reaching that minimum spend is so easy. But, if you have to plan it based completely on your monthly expenses, then you will have to check your average monthly spend. Then, you can research for credit cards that best suit you. When you are doing this, consider all the purchases that you can make without incurring any additional fee. You can make all daily buys like groceries, gas using your credit card like groceries, gas, conveyance, fuel etc. using your credit card. Also pay your utility bills and update every auto pay to your credit card once you receive it. In this way, you can easily reach the threshold spends required to acquire the welcome bonus.

Choose a Credit Card with a Huge Interest Free Period

Having a credit card with a long interest free period can help in managing your credit card bills with ease.

• Focus on flexibility of rewards

If you are loyal to a particular brand, then you can go in for that particular co-branded credit card . But with co-branded credit cards, you can redeem the earned reward points only against the collaborated brand. So, you cannot use these points flexibly. However, there are generic credit cards which enable you to earn reward points against various brands. These credit cards offer you greater flexibility and help you to maximize rewards with your credit card.

• Merge Points

Many hotel chains and airline companies enable you to transfer points between programs. Combining points can help you reach threshold spends with much more ease.