Credit cards are great for increasing your purchasing power and improving your credit score. Their reward points can also get you the best deals on international holidays. Continue reading if you want to know how you can get these advantages.
You need to understand the proper ways to use a credit card. For instance, the Kotak lifetime free credit card offers huge cashback offers and exclusive reward points without any joining fees. Moreover, the Kotak 811 Credit Card is recognised as the most popular credit card with max reward offers.
You can only leverage these benefits if you understand how to use your credit card correctly. Let’s discuss tips to maximise your credit card benefits and things you should avoid to reduce your chance of getting the advertised perks.
Why is it important to choose your credit card wisely?
Credit Card categories: Two different cards can have distinctive benefits and schemes. Cards are usually categorised based on consumers’ preferences; for instance, travel, business, entertainment, and more. Depending on your preference, you can select a category to get a credit card that will be the most beneficial for your purchases.
Charges and hidden costs: It is essential to look at the hidden cost or extra charges you need to pay to be eligible for those advertised benefits. Anyone can be attracted to an advertisement saying “cashback of Rs 10,000”. However, you must understand the cost of being eligible for the advertised cashback. Maybe hefty annual charges or hidden costs fool consumers into buying a particular scheme.
Compare different options based on their charges, and only choose a credit card category that matches your preferences. This allows you to maximise your savings while using a credit card.
How to maximise your credit card benefits?
You follow the advice mentioned earlier and get a credit card best suited to your spending preferences. It is essential to use the credit card correctly to maximise its benefits. For instance, you got the Kotak 811 credit card, considered the best credit card with the highest rewards. Now follow the tips shared below to leverage all of the advertised benefits:
- Retail purchases: To redeem your reward points, you should make most of your retail purchases through your credit card.
- Perks eligibility: Free airport lounge access, free meals at a high-end restaurant, or free tickets at a high-end multiplex are some of the most common perks of having a credit card. However, these perks come with eligibility criteria. The conditions are usually simple, but you need to keep track of your expenses to be eligible for these perks.
- Milestone rewards: Another way to maximise your benefits is the milestone cashback rewards. For instance, the Kotak lifetime-free credit card comes with a cashback offer worth Rs 750 on an annual expenditure of Rs 75000. Use your card for purchases to avoid missing the milestone money-saving offer.
- Card upgrades: Occasionally, your credit card issuer might give you some exclusive benefits on upgrades. Make sure not to avoid any such offers if you want to maximise your credit card benefits. If you are a free credit card user, you should apply for an upgrade to get your hands on exclusive offers and money-saving deals.
What should you avoid while aiming for credit card perks?
Cashbacks, rewards, exclusive access, and all these deals are great for empowering consumers. However, you should be careful about the interest-free period. Make sure to avoid using a credit card with a shorter interest-free period. This will hurt your pocket when you have to pay more as interest than the amount you earned as reward points.
Credit card perks and benefits are great for making purchases and saving money. However, you need to pick your credit card wisely and use it correctly to leverage the benefits.