Rahul walked into the restaurant and Anjali noticed he had a new bag with him. She rolled her eyes in exasperation thinking, “when will he learn to stop spending too much!”
Rahul sat down at the table and was instantly questioned, “so, new bag huh? How much did you spend now?”
“Nothing. I got this as a freebie from the credit card company.”
“Oh! Then it won’t last long.”
“That’s not true. It is the exact same bag that we saw in the mall the other day. Look!”
Anjali, with her skepticism, picked up the bag and checked it thoroughly, realizing it is indeed the same bag.
“How do you always manage to get the best out of your reward points?”
Rahul shrugged and said, “luck, I guess. I do read about reward points time and again to understand how I can get the most out of it.”
Anjali decided she was going to do the same starting today itself.
Are you someone who feels the same way? Do you struggle to understand reward programs? Let’s see how you can understand them better.
All credit card companies run reward programs. Every program is different from the other. It is very important to understand how these differences help you decide the best one for you.
Your Interests Matter
Like we mentioned, every reward program is different. It is best to understand which rewards make the most sense with your lifestyle. Eg: If you love travelling, a credit card that gives you a lot of cashback makes little sense. On the other hand, a card that offers reward points that can be used to get discounts at hotels and airline tickets will help you to save up while travelling. In the same manner, if you are trying to budget your income better a cashback card will help you achieve that goal. No single card can cater to everybody’s needs. It is best to find out where you spend the most.
Always compare options
Getting a credit card is usually an impulsive decision. However, it should not be and enough research should be put in the different reward programs available. A comparison of all is a great way to understand which one works best for you. Most travel cards have an annual fee and if you don’t use the rewards then the annual fee turns out to be an expensive amount.
Read the fine print
Reading terms and conditions can seem like a tedious task. This is the exact behaviour that companies take advantage of. Credit card reward programs change their terms and conditions often. Keep track of these changes to understand how to use the credit card to maximise your reward points.
Just like your card, the reward points also have an expiry date. A lot of times you miss out on using these points as they are lost over a period of time. Just like we mentioned earlier, reading the finer details will help you keep a check on your points. The whole purpose of reward points is defeated if they expire.
Keep the Best Card
If you are an existing credit card user, it is a good idea to compare the reward programs of all your existing cards. For best utilisation, stop using the cards which do not offer good rewards and deactivate them. However, be careful with your deactivation. It is not a good idea to deactivate a lot of cards simultaneously as it affects your credit score. Make sure you are choosing to keep a lot of cards to use and deactivating a minimum number.
One card for all
Once you have found the card with the best rewards program, make sure you make most of your transactions with this card. Unlike the advice for investments being a diversified portfolio, the best way to rack up a lot of reward points is to stick to one card. Reward points are earned when you spend money on your credit card. This way all your expenses are on one card and helps to earn a lot of reward points.
With these points in mind, Anjali will now be able to afford a lot more with her reward points just like Rahul.
At Chqbook, we offer a massive choice of credit cards that you can apply from. And whats more, we cover your joining fees through our rewards program. Download the Chqbook App today to get the right credit card.