Five tips for maximizing your credit card benefits

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Amid rising prices for goods and services due to inflation, cutting spending to cover essentials isn’t the only way to free up cash. In order to pay off debt or save on costs, one can avail several valuable benefits by using credit cards despite being a new applicant.

Moreover, if someone already has a credit card, they can already benefit from several rewards, offers or even spending advantages that could make a difference.

Here are some ways to maximize the value of a credit card:

1. INTRODUCTORY OFFERS

If someone has good credit (690 or more) and there is a big expense in the future, they might consider financing it with a credit card that offers a 0% charge on the annual rate of launch on purchases and a sign-up bonus.

And as long as they pay off the balance on time, they would save a significant amount on interest charges and also could recover part of the purchase cost with the bonus.

Additionally, good credit can also help pay off existing debt with a balance transfer credit card, as this can reduce costs and allow the transfer of high-interest debt from another issuer. at a lower interest rate.

One can also find promotional periods for balance transfers that run less than two years. Also, it may not be necessary to apply for a new credit card to get such an agreement, as some card issuers also offer targeted balance transfer offers to existing cardholders.

2. BUY NOW, PAY LATER

With many national banks and other financial organizations offering built-in “buy now, pay later” options on their platforms, one could easily use these as perks to refund eligible purchases in installments for a flat fee or even at a 0% interest rate. .

The availability of these BNPL options can make it easier to complete purchase plans that could save money if their fees or interest rates are cheaper than the normal interest rates of the existing credit card. Most of these offers don’t even require a credit check, and some also offer an extra reward or cash back on purchases on their platform.

3. REWARDS ON PURCHASES

A credit card that offers cash back on purchases can also help ease the pain of rising prices. For example, if one spends 5,000 rupees per month at the supermarket, a credit card that offers an additional 5% discount on groceries and fuel could help earn 250 rupees in rewards each billing cycle. This cashback, over a year, adds up and can be redeemed for cash or even as additional offers.

However, note that if your current credit card doesn’t offer rewards for frequent spending categories like restaurants or groceries, you can also upgrade to another that better suits your spending.

4. MERCHANT-SPECIFIC DISCOUNTS

Many credit card issuers also offer discounts or rebates when their credit cards are used to make purchases from specific merchants in categories such as everyday shopping, fuel, and travel. These specific offers can be found on your card issuer’s website and you can easily choose them through online banking or telephone banking.

5. BENEFITS

Many benefits are only available through a credit card, such as cell phone insurance, extra cash back, and instant cashback, among others. One can enjoy these benefits by using your card’s coverage plan for damaged or stolen devices that are purchased through them.

For example, some credit card issuers offer a free theft or accidental coverage plan for electronic devices if purchased through them. However, the claim process for such cases could be complicated but will be worth it since no extra money has been paid for this benefit.

Also, it should be noted that not all credit cards have the same offers or benefits as others. Also, one should know their card terms and conditions before availing any of the benefits and know what benefits your credit card offers.

Also read: “Buy now, pay later” is it a bane or a boon? Opinion of users and experts

Also read: Axis Bank and Indian Oil launch RuPay co-branded contactless credit card

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