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5 Tips to Earn the Maximum Rewards on your Credit Card

5 Tips to Earn the Maximum Rewards on your Credit Card

Did you know that credit cards can help you reap numerous benefits? Making the right use of a credit card will allow you to maximise the reward points on your card. Some people use their cards very expertly and reap the benefits constantly.

Here’s a list of five tips to earn the maximum rewards on your credit cards. To find out more, read on.

1. Choose Your Card Wisely 

It is recommended that you carry out thorough research on what kind of a credit card you need. Some factors you need to consider are the charges, usage frequency, purpose of usage, and maximum limit. For instance, if you are a frequent flier, a card that offers exclusive airport lounge access might be valuable. A secure transaction is also necessary. Choose a credit card that offers secure pin generation.

2. Use Your Card Regularly

Using your credit card for most of your purchasing is a very effective way of expanding your reward points. More transactions translate into more rewards since credit cards offer some point on every purchase. However, beware of going overboard with your expenditure or spending up to your credit limit. 

3. Make Timely Payments

If you don’t make timely payments for credit card charges, the interest charged on the outstanding amount will nullify all rewards obtained. It will also reduce your credit score, which will make you unable to get approval for loans or more credit cards. Remember, that your existing debt such as various forms of unsecured loans or bonds (subordinated debt) will also impact your credit score. However, the Government of India launched a scheme in 2020 providing subordinate debt to MSMEs to have access to working capital. If you are a small business with such a loan, it is fully guaranteed through the Credit Guarantee Trust for the Medium and Small Entrepreneurs (CGTMSE).

4. Refrain from Impulsive Spending 

The objective of credit card reward points is to encourage you to use your card more often. However, increasing the use of your card can earn you more points very quickly, you should always stay mindful of your credit limit and not get carried away with your shopping. A low credit utilisation ratio is a must to hold your credit score in good stead.

5. Make the Most Out of the Offers and Remember to Redeem Your Points Before Expiry Date  

Another piece of advice is to keep an eye out for the seasonal and promotional offers so that you can maximize the rewards on your card. Besides, you must always remember to redeem all your hard-earned reward points before the due expiry date. A large number of card-holders fail to track their points resulting in the loss of precious points.

Reward points make credit card usage interesting, beneficial, and economical. Even if you have to pay higher annual fees, a card that provides a lot of perks and benefits can offset the cost. 

Williard John is the Editorial Director at The Daily Strength Inc. Prior to joining The Daily Strength, Williard had a hand in a number of online and print publications, including as chief copy editor and Government Technology Magazine as managing editor. He also did a stint in Sydney as group editor of RBI Australia's manufacturing group, which is when he also developed an affinity (a love, really) for cricket

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