Optimise the Benefits of Your Credit Card with These Tips

Optimise the Benefits of Your Credit Card with These Tips

Credit Cards have been a top-rated financial product for many years that help you meet urgent financial requirements,but in the wake of the rapid development of e-commerce and digital payments, their importance has assumed additional significance.

Not only do Credit Cards enable you to get attractive discounts and deals on your purchases, but they also present one of the most secured modes of online payments. There are many bankers offering Instant Approval on Credit Cards Online where you just need to fill in the application form,and your new card reaches you in a few days.

What makes Credit Cards more desirable is the fact that you earn reward points every time you make a purchase, helping you save more. You can use these reward points for air tickets, free vouchers, free movie tickets, discounts at restaurants and many other benefits.

How to optimise the benefits of Credit Cards?

But just getting the rewards is not enough, you need to use the benefits offered by your Credit Card optimally to maximize their utility. There are various types of offers that are doing round on the internet, but they do not help you with the understanding of how to use the Credit Card for your benefit.

Here are five tips that will help you optimise the benefits of your Credit Cards.


  • Choose a Credit Card that rewards you

There are numerous variants of Credit Cards offered by various banks with each claiming to be providing the maximum benefits on a specific type of expenditures. But you should choose the one which provides rewards which would benefit you the most.

For this, you need to understand your expenditure pattern and then select a card that would fit your needs well. For e.g., if you travel frequently, then you should get a card with bonus air miles or if you go out for dining a lot get a card with rewards for dining out. This way you would still be spending the money on that particular activity but would be getting great rewards for the same, making it whole lot desirable to you.

  • Have multiple Credit Cards

If you feel that you are financially disciplined, then get two or more Credit Cards. You should understand that each Credit Card has a maximum limit up to which you can accumulate reward points in a month.

So if you have two cards, you can make sure that your expenditure does not go to waste. Also, try and keep Credit Cards from different issuers such as Visa, Mastercard or American Express, as different vendors offer rewards on variousCredit Cards. So, you can choose to make payment with the Credit Card that can help you maximise your benefits. If you use two cards, it also helps keep your credit utilisation ratio below the desired levels.

  • Track your reward points

Earning reward points is just half the task, you need to spend them also. Reward points have a specific validity and must be redeemed during that period; otherwise they will lapse, and you be suffering a loss.

So, you must check your Credit Card statements regularly and keep an eye on the validity of your reward points. Make it a habit of using the reward points before they expire. There are various types of offers available from Credit Card issuers to help you redeem your reward points, so make sure you get something rather than letting them go waste.

  • Use the interest-free credit period

Every Credit Card comes with an interest-free period, which can range from 15-60 days, if you make the complete payment during this period, you need not pay any interest on the amount utilised.

So, feel free to use your Credit Card for paying your bills or making purchases online but also remember to repay the entire amount due before the interest-free period lapses. Do not fall into the trap of making minimum payment due, as you would otherwise be paying very high-interest rates on your Credit Card usage.

  • Use the Credit Card smartly

You need to be a smart shopper when you use your Credit Card for making purchases or paying for expenses. You should make more expensive purchases at the beginning of the billing cycle so that you get maximum time to repay the amount without paying interest.

Similarly, if you keep two Credit Cards then keep track of their payment due date and time your purchase accordingly, this way you can maximise the befit of interest-free period. Also, keep a check on the Credit Card statement and if there are any charges that you do not understand, seek clarification from the issuer. Most of the times these charges will be waived off.

Using a Credit Card is not rocket science but still, if you act smartly, then you can maximize the benefits realized from your Credit Card.

To apply online for Credit Cards, Secured Loans and Unsecured Loans, visit www.mymoneymantra.com, the leading online lending marketplace that offers financial products from 60+ Banks and NBFCs. We have served 2 million+ happy customers since 1989.

Also Read: 5 Tips to Find an Ideal Credit Card

Talk to our Loan Specialists toll-free at 1800 103 4004 to know more about our products and offers.


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