How to Maximize Benefits of your Credit Card Use?

Credit Cards have always offered convenience to most users. In addition to the convenience that these cards have offered, today, many issuers are also attaching rewards to Credit Cards, thus, drawing more attention and gaining popularity. Every penny you spend on certain Credit Cards can earn you points which you can also use for shopping, travel or other purchases. In order to maximize the benefits of your card, you must follow the list given below:

• Sign-up bonuses: Many rewards Credit Cards offer a great deal of sign-up bonuses which can benefit you in many ways. Applying for certain Credit Cards at the right time, might land you earning maximum Reward Points. In a competitive market today, you might be able to find many different issuers who make similar offers. If you time your applications to take advantage of these bonuses, it can surely help you maximize the value of your rewards Credit Card.

• Categorize and Spend: Some issuers offer increased benefits at certain times of the year, for spending in certain categories. For example, your Credit Card might offer you some percent of CashBack for all your purchases in a particular month, or might even double the points if you go to the movies. Issuers often publicize their bonus categories well in advance, in order to make people aware and help them plan their purchases accordingly, helping them gain maximum rewards.

• Shopping Online: Numerous Credit Card issuers have their own online shopping portals through which you can shop and stand a chance to increase your rewards. Once you log-on to your issuer’s site, you will automatically be redirected to the shopping portal you desire, including even a departmental store. Any purchases that are made by you through your issuer’s shopping portal, can help you earn extra points or miles, and won’t cost you any extra.

• Spending Everyday: By directing your everyday expenditure to your Credit Card instead of using cash, you can earn many points or miles for the things that you purchase. Using your Credit Card for things like gas or food, or for things that you would normally buy in the course of your everyday life, you can maximize your rewards and also avoid excess expenditure.

• Considerations: While most Credit Cards provide rewards when wisely used, a failure to be responsible with your Credit Card usage can weaken all the benefits. If you carry forward a balance on your Credit Card, the Credit Card Interest Rate that you will need to pay will be much more than your benefits. Carrying forward a credit balance can also harm your credit score and prevent you from getting better Credit Card Interest Rates on future loans. If you end up increasing your expenditure simply to earn more rewards, you may land in deeper debt than you would otherwise by simply paying for the purchases with your cash.

In the whole process of maximizing benefits of your Credit Card usage, there are three key factors to remember about the Credit Card rewards programs. Firstly, Credit Card rewards programs are designed to earn money- for the issuing company. Second, always take the time to read the fine print, do your homework and know what you’re getting into. Third, always make payments on time as a failure to this will hit your rewards stash and your wallet.

Read more on how to keep your Credit Card bills in check.

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* Terms & conditions apply. Credit Card approvals are at sole discretion of HDFC Bank Ltd. The information provided in this article is generic in nature and for informational purposes only. It is not a substitute for specific advice in your own circumstances.