Credit cards due to their high interest rates and debt traps are feared by a many people. But if used smartly and with control, credit cards can act as a wonderful tool for not only financial emergencies but also for good gains. In this day and age of increasing competition, banks are offering more lucrative spend and earn deals for their credit card customers. Because the more people spend using their credit cards, it effectively means more revenues for the banks in the long term.
Let us take a look at some of the possible ways to use one’s credit card intelligently to make your credit card experience interesting.
Spend and Earn Using Reward Points: Spend and earn reward points are a commonly used promotional tool by credit card companies. Rather than shopping more, the best way to gain reward credits wisely is to use credit card to spend for mandatory payments that you do each month. Payments for utility bills and insurance premiums can be paid through credit cards to avail spend and earn reward points.
Cash Back as Money Saving Tool: Credit card companies offer cash back on certain spending including utility bill payments, restaurant bills and other generic purchases like movie tickets. The quantum of cash back offers generally varies between 5 to 25 percent. In case the credit card company offers a 5 % cash back facility for utility bills like telephone bills, you can receive a credit entry of Rs 50 for every Rs 1000 paid towards the telephone bill. Users have option of requesting the cash back earned to be adjusted against the outstanding for the next month to ease off their billing cycle.
Co Branded Credit Cards: Banks tie up with large retailers including airlines and retail chains to offer co-branded cards to their loyal customers. Such credit cards allow unique discounts, reward points and exclusive sale previews and billing counters for at their stores and branches.
Frequent Flier Rewards: If you are a frequent flier, the use of credit card for booking the tickets can mean an additional reward point for every ticket purchase. So you not only get rewarded by the airline for being a loyal customer, but can also accumulate reward points for ticket booking by the credit card company which can be redeemed for cash or kind in the near future.
Access to Exclusive Airport Lounges: Credit card holders can enjoy exclusive access to various high end airport lounges. The access is not just limited to domestic airports but also covers various international airports. Relax in an exotic airport lounge overseas while waiting for your flight at no extra cost by simply being a proud owner of a credit card.
Concierge services: Credit card companies offer their clients a wide range of concierge services allowing them access to professionals, taking care of their last minute entertainment, hospitality and travel plans. From booking movie tickets, to flower and gift assistance, restaurant reservation, car rentals and sourcing of luxury items, credit card companies offer a wide range of concierge services to their credit card clients. The premium card owners are eligible for more premium concierge services than basic credit cards.
Fuel Point Rewards: Credit card companies have a tie up with major oil companies offering great reward points for users. Find out the information about your credit card company and its tie up with the fuel pump located near your area. Always make sure that you use your credit card for all your petrol and diesel purchases using credit card in order to accumulate reward points that can be usefully redeemed in the coming months.
Things to Consider before Availing Credit Card Reward Point Program: Before you start spending money in order to attract gains and rewards from credit card companies, make sure you understand the finer details of all such reward programs.
- Usually banks charge an annual fee for all card holders who are participating in the reward program.
- Check with your bank for any hidden charges or fee they charge for taking part in the reward program.
- Another thing to keep in mind is that reward points accumulated have an expiry period. Make sure you redeem your accumulated reward points before the end of the expiry period or they would account for nothing.
Compare credit card offers from various banks. Apply online at BankBazaar.com and get instant e-approval.