There is a wide array of credit card options available today and if searched correctly, there is a card for everyone’s needs. Credit cards today offer a variety of incentives such as cashback, travel benefits, and reward points. The credit card rewards world has become fiercely competitive, meaning that card issuers are wooing new customers with ever-greater rewards and perks. Here’s how you can get more out of your credit card.

A right card that suits your needs is a must
With the plethora of information available on the Internet about credit cards and offers, the actual search for the right card, starts with the customer. It is important for customers to understand their spending patterns and identify categories where they spend most regularly. These may vary significantly from customer to customer depending on their lifestyle and is a key component in maximising the value you can extract from your credit card. Different credit cards offer different reward programs, such as cashbacks, shopping vouchers, etc. Some credit cards also have bonus categories that give their customers extra points for spending on certain items or at certain merchants.

It is important to match the right credit card with one’s spending habits and preferences.

For example, if a customer travels frequently, he should opt for a credit card that offers higher points on travel. Those who frequently shop online, should look for a credit card that gives benefits for online purchases.

Understand the nuances of reward maximisation
The other key to maximising credit card rewards is understanding how the points system works. It is important to decipher the value that your card offers each time you spend on the card. Some cards provide a simple rewards structure while others have a complex reward point structure. It’s important to peel this rewards structure and identify where your card offers the most value. Personally, I would always recommend customers to choose cards with easy-to-understand reward structures, as then customers can easily maximise the benefits.

How does the reward catalogue look?
It is one thing to earn reward points, consuming them is a totally different matter. Do look at the reward catalogue. Some cards have a diversified catalogue giving gift vouchers on daily consumption items while others have a catalogue that offers the most premium product available using reward points. The best is to search for a card that has a well-curated catalogue in the space you are interested in. For example, there are banks where reward portals allow you to use your reward points for travel and hotel booking and there are others that can be used for free movie tickets. Then there are co-brand catalogues that may allow you to utilise your points on a specific portal and merchant. For a number of smart users, their work travel generally ends up sponsoring their annual family holiday if they pick the right cards.

Look for the occasional big deals
It is also important to also be aware of the offers being run by your bank on your credit card from time to time. Most large issuers in the country have alliances with some of the largest merchants, which results in some amazing benefits being extended to credit card holders from time to time. While these offers are generally for limited time periods only, these give customers a great opportunity to avail discounts over and above discounts that may already be running on the merchant platforms.

What more can you do with your card?
I would also encourage customers to look at the wide array of payment options available. Many banks are providing UPI on Rupay credit cards. This can make paying at the shop next door or at the supermarket a lot more convenient.

It is also important to look at the various EMI and financing options available on your credit card. The wide range of merchant EMI programs can make shopping for the LED TV a lot more delightful.

Source By: economictimes

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