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5 Ways To Enhance The Benefits Of Your Credit Card

Team BankBazaar
·3-min read


Over the years, besides eliminating the need for carrying physical cash, credit cards have been offering a host of discounts and great benefits and privileges to their users. When you use your card, you can earn reward points that can be redeemed for travel, shopping, cash, and other benefits. Similarly, you may earn cashback for eligible expenses made through credit cards which would allow you to save more. However, some people are unaware of such benefits and the ways through which they can maximise them.

This article is a guide for the uninitiated credit card customer as it throws lights on five ways that can enhance the benefits of your credit card.

Make Sure to Sign up for Perks

Many credit cards offer their customers a lot of sign-up bonuses. This would mean that as a new cardholder, you will earn extra benefits like cashback, miles or bonus reward points. You can earn sign-up bonuses when you spend a minimum amount on your credit card within a given period. This time frame will be determined by the bank. You have to compare various credit cards offered by different banks and choose the one that suits your needs.

Track and Redeem Your Reward Points

When you choose a credit card which offers reward points on your expenses, you will also get the opportunity to redeem these reward points and make purchases from the bank’s catalogue. These reward points will expire after a pre-stated period on many occasions. Make sure to keep track of your reward points and redeem them from time to time before they expire.

Look out for benefit riders

While doing so, make sure you have clarity about the riders like cashback caps, reward points accumulation and conversion rates, redemption options, eligible purchases, partnering merchants, etc. to maximise the card benefits.

Convert Your Purchases into EMIs

There are times when we delay buying a laptop, smartphone or television as we do not have sufficient funds. Most credit cards offer an EMI facility and this helps to solve the problem of inadequate funds. Under the EMI facility, you can convert any transaction which is more than the threshold into EMIs. This enables you to easily repay the amount by choosing a tenure which is between 3 months and 48 months. This comes with an interest rate of up to 1.5% per month.

Keep Note of the Interest-Free Period

Most credit cards come with an interest-free period. This time frame generally ranges from 20 days to 55 days, based on the type of credit card you have. During this period, your credit card issuer will not charge you any interest on your card expenses, as long as you pay your bill by the due date. You must ideally choose a credit card that has a long interest-free period so that you can gather adequate money to clear your dues in full before the payment date. If you have multiple credit cards that have different due dates, you need to plan your transactions in a way that most of the transactions will be at the beginning of the billing cycles.

Keep in mind that credit cards will increase your purchasing power, however, it may result in overspending if you do not exercise financial discipline. You may fall in a debt trap if you miss your payment due dates. This can, in turn, affect your credit score. It is advisable to make use of the benefits on your credit card and follow the due date to avoid paying interest charges and maintain a good credit score.

BankBazaar.com is India’s leading online marketplace for loans and credit cards.

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