Don’t use credit cards like this!

According to Reserve Bank’s latest data India had almost 6.5 crore active credit card till June 2021. Credit card dues constitute a big financial worry for most card owners. But how many of us know that reward points of credit cards can be of use for bill payment. So, while using or paying with the credit card always keep reward points in mind. One thing is certain with credit cards — the more you spend, the more points you rack up, and the more freebies you’ll get. Most credit cards offer reward points on the spending of the owner.

But you should always keep spending limit in mind, otherwise you could land in a huge debt burden.

Money9 gives you six brief points on how to spend to earn more reward points and how to use it at the optimum level.

Spend first

You need to spend first to gather reward points. Even after you have collected reward points, you might have to spend a larger amount to avail them. Though this varies across companies and platforms, first you have to spend a certain amount to be able to use your reward points.

Experts suggest that people should be aware that they don’t end up spending in excess just to bag such incentives.

Look for promotional offers

From time to time, credit card providers offer specific promotions. Various credit cards roll out promotions that allows you to earn additional reward points if you meet minimum spending requirements through their cards. While these deals can vary, you can punch in these promotion deals along with the reward points the cards offer, and additional cash backs.

Use the right card

If you want to score more points over time, focus on using the right type of credit cards. For example, look for cards that offer on categories that correspond with your purchases.

If you have a cash back credit card that offers 5% cashback on grocery purchases, it would make sense to use that credit card if you are planning to make a purchase from a grocery store or online grocery platform.

Similarly, if you have a credit card that offers more points for travel purchases; use that credit card while making travel bookings and others.

Experts suggest one should always assess one’s selection of credit cards to find the one that gives them the most points and miles for their purchase.

Availing multiple offers

You can sometimes grab multiple benefits that are offered on one transaction. Keep in mind while availing rewards with your credit card that you also catch some discounts or additional cashbacks so that you get double benefit from one transaction.

For instance, while making a purchase, you might check whether additional cashbacks are offered apart from rewards on the use of your card.

Compare earnings

Before you click on a deal through a shopping portal, compare it with other websites before finalising, especially on travel and e-commerce portals. While one might be offering one additional point for each rupee you spend, another might offer you a free ticket on spending a certain amount using their card in a year.

Experts suggest going through all the portals that work with rewards programs to get the best deal. Spare a few minutes to compare earnings through your cards before you shop.

Be cautious

Overspending, especially through credit cards, can be detrimental to health. Always keeps a tab on expenditure and don’t forget to check your reward point status and use it while paying card dues. Be cautious that your hard earned reward points don’t lapse.