Sudden emergencies can arise at any moment. These emergencies lead to unforeseen expenses. In most cases, you may not have enough funds at hand at such a time. Credit cards offer a simple solution to deal with any financial emergencies. Most reputed financing companies in India offer these cards to people with a proven credit rating.
Other than the credit, such NBFCs also provide additional rewards to individuals using credit cards for purchases. These are known as gift points.
The utility of credit card reward points
Depending on the card issuer, the reward points you accumulate through the usage of the card may offer cash rewards, discounts on hotel or flight bookings and other benefits across partner retail outlets. You can also redeem your credit card reward points to avail vouchers at select stores.
Reward points on credit cards are offer programs to help retain users and generate new ones. You can accumulate such points in multiple ways as per the terms of the credit card issuer. Here are few ways to maximise your credit card reward points.
6 ways to maximise your credit card reward points –
1. Picking the right card
There are numerous varieties of credit cards are available in the market. Choosing the right credit card is essential depending on your lifestyle and shopping habits to earn the maximum points. Furthermore, the card you pick also influences the kind of reward points you can expect from it. Refer to cards which offer at least 1.5%-2% as rewards on purchases. That is, if you spend Rs. 1,000 using the card you should accumulate 15-20 reward points on the purchase.
2. Understand when to sign up for the card
Simply choosing the right card is not enough. You must know the correct time to apply for such a card. Most companies offer higher reward points during a specific period of the year. Doing so as per the time frame can help you accumulate more credit card reward points than you could have in other cases. Keep your eyes open for such windows of opportunity and always apply for the card at such a time.
3. Choose a card that offers reward points as welcome gifts
Some cards, such as the Bajaj Finserv RBL Bank SuperCard, offer reward points to customers just as a welcome gift. These points are essentially available free of cost since you do not have to use the card to earn them.
4. Maintain the value of points by regularly redeeming them
While it may seem more beneficial to save reward points for usage later, doing so often results in the devaluation of those points. With each passing year, financing companies increase the points required to avail a certain product or service. Think of this as an effect of inflation, which results in the decrease in value of reward points accumulated over time.
5. Use your card for online purchase
E-commerce sites offer an easier and more convenient alternative to offline shopping. Credit card companies are aware of this, which is why you are more likely to reap greater reward points on purchases made through these online portals.
6. Focus on one card instead of many
While signing up for several credit cards may help you gain more reward points, it will also increase your financial liabilities. Therefore, it is better to opt for a single card that focuses on greater points on certain expenses. For instance, some cards offer considerable rewards on expenses, such as buying movie tickets or dining at restaurants. If you frequently engage in such activities, such a card will be exceptionally beneficial to you.
Creditcards have become a necessity these days. Consider what your card offers to you instead of simply paying the bills. Take advantage of credit card reward points and save your hard-earned money.