By analysing your spending habits and financial requirements, you can maximise your savings using the best credit card offers. These perks may be related to reward points, cashback and discounts. The offers can differ across issuers and seasons, so keeping an eye on them can help!
For example, some credit card issuers provide enhanced reward points against purchases, whereas others may give you a flat cashback during a Christmas sale. Based on your lifestyle and personal preferences, you will need to choose a credit card that suits you best.
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Various Kinds of Reward Programs
Many credit card issuers come up with lucrative offers depending on your spending categories or habits. For example, some issuers provide certain reward points for a specific spending amount. Others may come up with boosted points for categories such as:
- Travel
- Dining
- Fuel
- Electronics
Earning rewards points strategically is a part of utilising your credit card smartly. Primarily, the reward system is classified in these ways:
Air Miles
This is the kind of reward system that promotes travel. You earn air miles when you make a transaction using your credit card. These are travel-related points that can be redeemed for expenses such as:
- Booking a fight ticket
- Booking hotels and other travel-related expenses
Reward Points
These are basically earned on spending a specific amount of money or making certain purchases. This will vary from issuer to issuer, and you can acquire reward points from a range of 1X to 10X based on the platform you are using. The reward points you get may not be the same for every transaction you make. Most issuers will provide more reward point on expenditures under a particular category or on partner platforms.
Cashback
Cashback is getting a certain percentage of your spends credited to your bank account. Based on which issuer you have opted for or the type of credit card you have, you get cashback on eligible transactions.
Fuel Surcharge Waiver
When you use a credit card to pay for fuel at a gas station, a percentage is applied to your credit bill. This is called a fuel surcharge. Now, most of the credit cards either reduce or altogether waive off this fee. This percentage can vary from 1% to 2.5% with conditions like minimum and maximum spending, and it often applies when the payment is made at select fuel stations.
How to Use Your Credit Card Efficiently
Apart from the convenience of using credit for purchases now and paying your bill later, your credit card offers a variety of other valuable benefits. To make the most of these offers, keep the following factors in mind:
Check Which Category Offers Accelerated Rewards
This can be the most crucial step to maximise the benefit of using a credit card. Select a credit card that matches your spending habits. Check with the credit card issuer what categories provide accelerated reward points.
Select a credit card that matches your spending habits. For example, if you want to save on your fuel expense, selecting a credit card giving maximum offers on fuel can be optimal for you.
Earn Extra Points Using The Issuer’s Portal
Many credit card issuers have a provision for online shopping on their portal. They encourage this by providing you with extra miles or points. Depending on your requirements, you can simply go to your issuer’s online portal and shop.
Credit card issuers often partner with specific retail stores; this helps to earn extra rewards on purchases made at the departmental stores with whom they have collaborated.
Look for Flexible Reward Programs
While reward points can be attractive, choose a credit card that offers rewards across a wide variety of retailers and merchants. If the reward program is restricted to specific outlets, it may not add that much value, especially if those stores aren’t part of your regular shopping routine.
Spend According to Card’s Limit
Earning points can be rewarding while making transactions. However, spending unnecessarily to gain more rewards can result in overspending and can increase your credit utilisation ratio. Hence, stick to your budget and spend responsibly according to your requirements.
Meet the Terms to Get Welcome Bonus
Credit card issuers often offer a substantial number of reward points as part of the welcome bonus when you first sign up for a credit card. Try getting these bonus points to start your rewards journey on a positive note. However, you must meet their terms and conditions to receive these reward points.
Pay Your Bills on Time
To maximise the benefits related to credit cards, it is necessary to pay your EMIs on time. To access the reward programs, you need to pay your outstanding dues. It is essential to pay on time, otherwise, interest rates and debt accumulation can outweigh the rewards.
All these suggestions will ensure that you maximise the benefits of your credit card. You must take your time to thoroughly understand all the credit card benefits. Additionally, plan your spending and look out for special offers and promotions, especially around festive seasons or annual sales.
If you’re looking for some of the best credit card offers, consider the One Credit Card. It allows you to enjoy lucrative offers on travel, grocery, retail, fashion and more without any annual or joining fee.
Moreover, you can earn 5X rewards on your top two spending categories. Using the powerful One Credit Card mobile application, you can find offers around you via GPS. Apply online to enjoy the benefits of this lifetime-free credit card!