The use of credit cards is increasing in the young generation. In America, UK and European countries, more than 60 percent people are credit card holders. While in most Asian countries, less than 15 percent people use it.
most of the credit card user wants to earn more reward points so that they can spend it on shopping or other purpose. Earning more reward points on your credit card involves strategic spending and taking advantage of card benefits.
Here are some tips to help you maximize your reward points:
- Choose the right card: Choose a credit card that suits your spending habits and offers high reward rates on categories you spend frequently, such as groceries, gas, dining out, or travel.
- Online Shopping Portals: Some credit card companies have online shopping portals where you can earn extra points by shopping through their links. This is especially useful for big-ticket items. For example: Amazon and flipkart offer such reward point.
- Sign-up Bonus: Many credit cards offer a sign-up bonus once you meet certain spending thresholds within the first few months. These bonuses can give a significant boost to your reward points.
- Category Spending: Use your credit card for purchases under bonus categories. Some cards offer higher rewards for specific spending, such as dining, travel or online shopping. Be sure to understand the rewards structure of your card.
- Promotions and offers: Keep an eye out for special promotions or limited-time offers from your credit card issuer. They may award extra points for specific purchases or during certain periods.
- Pay bills and utilities: Check whether your credit card allows you to pay bills or utilities with it. If so, use your card for these payments to earn points on regular spends.
- Travel bookings: If you have a travel rewards card, use it to book flights, hotels and rental cars to earn points on your travel spend.
- Use for larger purchases: When making important purchases, consider using your credit card to earn points. Just make sure you can pay the balance in full to avoid interest charges.
- Consolidate spending: Concentrate your spending on a single rewards credit card to earn points faster. This can also make it easier to track your rewards.
- Refer-a-Friend Programs: Some credit cards offer bonus points if you refer friends or family members who successfully apply for the same card.
- Avoid interest: Pay your credit card balance in full every month to avoid interest charges. The interest may far exceed the value of any rewards earned.
- Stay updated: Check your credit card website, app or email regularly for updates on rewards, promotions and any changes to the rewards program.
- Redeem wisely: When redeeming your points, aim for high-value options like travel, cashback or gift cards. Some redemption options provide better value than others.
- Avoid overspending: While the goal is to earn more points, it is important not to overspend or buy things you don’t need just to earn rewards. Stick to your budget.
- Monitor Expiration Dates: Some Reward Points have an expiration date. Make sure to use them before they expire.
The effectiveness of above strategies depends on the specific credit card you have. Always read the terms and conditions of your credit card’s rewards program to make sure you’re maximizing your points without incurring unnecessary fees or interest.