7 Strategies to Optimise Your Credit Card Reward Points
Credit cards allow you to make big-ticket expenses and pay them off in instalments. Cashback and rewards are other important credit card benefits worth considering. Lately, reward programs have gained popularity among consumers because they basically reward you for spending more, but wisely. However, most people find these rewards too complex to understand. Smart card users must learn how to optimise their credit card use to maximise the benefits of these reward programs. For instance, when you complete the Kotak 811 credit card application process, their reward points system allows redeeming points against various expenses like recharges, movies, travel, and much more.
Consider the following points to make the most out of your credit card reward points:
1. Ensure that the Card You Choose Matches Your Lifestyle
Always pick a credit card that matches your lifestyle. For instance, if you are a frequent traveller, choose a card offering extra rewards points on air tickets and hotel bookings. The idea is to select a card that provides maximum rewards on expenses you make the most.
Some credit cards provide extra points on entertainment and dining purchases, while others give bonus points on fuel refills, etc. So, the type of reward points the card offers the most is something you must decide to maximise the credit card benefits.
2. Utilise the Welcome Bonus
Many credit card providers offer welcome bonuses to encourage new customers to join. Typically, these sign-up bonuses apply when you spend a certain amount within the first few months of obtaining the card. For instance, the Kotak 811 credit card application offers 500 bonus reward points for spending Rs. 5000 in the first 45 days of card setup.
3. Maximise Your Savings by Earning the Reward Points
The main idea behind offering reward points is to encourage cardholders to purchase more. However, you should not bust your budget just to earn the reward points. Instead of focusing on the rewards, you must concentrate on the credit card benefits these reward points offer.
Moreover, use your credit card to make your everyday expenses and maximise your savings. Use the card for online shopping and daily purchases like groceries and fuel. This is the right way to maximise your savings with reward points without buying extra things you don’t need.
4. Give Attention to Flexibility
If you are a regular customer of a particular airline, retail store, or hotel chain, use a co-branded credit card offering more perks on brand purchases. However, such cards may lock customers into their rewards systems, meaning you cannot use the accumulated reward points outside the collaborated brand. Opt for cards offering decent rewards with more flexibility apart from the reward points.
5. Don’t Ignore the Fine Print
Credit card reward programs are subject to change at any time at the issuer’s discretion. So, you must visit the issuer’s website to stay updated about the latest terms and conditions. Understand the reward categories and stores where you can redeem the rewards.
Apart from the terms and conditions, check the validity of reward points and whether you can redeem them all at once or only a percentage of them. The points are valid only for a few months with most reward programs. You must redeem them before their expiry date. So, keep a close watch on their validity and read the fine print to maximise the credit card benefits.
6. Examine the Schemes and Offers
Do not blindly go after the promotion email in your inbox. Research well and take the right steps to utilise the available offers. Credit card companies offer special discounts and deals during festive seasons. Rather than getting enticed to spend unnecessarily, examine your requirements and budget before shopping. Tracking such offers and taking advantage of the available benefits is the best way to optimise rewards.
7. Set Your Limits
Many credit cards offer better deals than others, but with the condition that you spend a certain minimum amount within a particular period. If your credit card has such an offer, keep track of your expenditures and calculate how much you must spend more to redeem the discounts and rewards. However, instead of overspending, make all your expenses during the period using the credit card and maximise the reward points.
he_ad id=’4558′]
[the_ad id=’4558
