7 Strategies to Optimize Your Credit Card Reward Points

Here are the strategies which you need to follow in order to optimize credit card rewards:

1. Don’t spend money just for the sake of earning rewards

Trust us! This is what the issuers want. The whole idea behind reward points is to encourage people to make more use of their credit cards. Don’t go busting your budget just for earning the reward points. Rather than focusing on the rewards points, you should focus on the benefits that you can earn with those reward points.

Also, to increase your savings, you should use your credit card for day to day expenses. You must be using your credit cards for online shopping, but it’s also a good idea to use them for everyday purchases, such as fuel and groceries, even if you have cash in hand. In this way, you can increase your rewards-earning opportunities without having to buy extra things that you don’t need.

2. Pick a credit card that offers rewards matching your lifestyle

You should always get a credit card that matches your personality. A card that offers extra reward points on travel will be of no use if the last trip you made was three years ago. The right credit card would be the one that offers rewards on the purchases you make the most. Some cards offer extra rewards on dining and entertainment purchases, while others give you bonus rewards when you purchase airline tickets, for example

So, you have to think about the kinds of rewards you want. If you enjoy taking lots of trips, a card that gives extra rewards on travel makes the most sense. So, this is something you need to decide at the time of getting a credit card.

3. Read the fine print

Pay attention to your credit card reward programs as they are subject to change. Your credit card provider can change the terms of rewards and cashback as and when they like. So, it is in your interest to stay updated with the latest rules by visiting their website from time to time. You should also know about reward categories and the stores where the rewards can be redeemed.

Apart from the terms and conditions, you should also keep a check on the validity of your rewards points. Some credit card users collect a host of reward points and redeem them all at once. This way of redeeming points is typically useful with frequent flier miles, hotel points or to buy a big-ticket item on your premium credit card but it is to be noted that most of the reward points are not for lifetime. They are usually valid for 2-3 years, which varies from issuer to issuer. You should keep a close watch on your reward points validity and related terms and conditions to maximize your benefits.

4. Research about the offers and schemes

Do not just go with the promotional mail in your inbox. It is possible that the same benefit is available in the market to other users also. Research and then take the step. If you have several credit cards, you should know how to utilize the rewards of each card. The card issuers also put up sales for their credit card users, especially during festive seasons. Although these are also targeted at enticing you to spend, they can be beneficial for your festive shopping.

Besides this, majority of credit card issuers often run limited-time offers that can provide accelerated rewards rate. You may even receive targeted offers that allow you to earn extra rewards for a certain time period. It is advisable to keep a track of such offers and take advantage of the benefits since they often run for a short amount of time, but can help you optimize rewards.

5. Know your limits

Some credit cards offer tremendous rewards but with the condition that you have to reach a certain spending limit. In case you have such a credit card and you wish to enjoy the benefits, keep track of how much you have spent and how much more you need to be eligible for the rewards and discounts. In such cases, go for the rewards credit card if you are sure that you can easily achieve the targeted spending limit to avail reward benefits.

6. Focus on flexibility

If you are loyal to a specific airline, hotel chain or retail store, then applying for a co-branded credit card makes sense, as it gives more perks on the collaborated brand. But such cards also tend to lock you into their own rewards systems, which means, sometimes, you cannot use your earned reward points beyond the collaborated brand.

On the other hand, general credit cards that offer decent reward points are much more flexible. In most of the cases, you can convert or redeem your earned reward points on multiple brands. Therefore, it is important to focus on flexibility apart from the benefits.

7. Take advantage of the welcome bonus

Many card issuers offer sign-up bonuses to attract new customers into joining. Typically they offer large point or mile bonuses to those who spend over a certain amount within the first three months of card setup. For example, with YES First Preferred Credit Card, if you make the first transaction within 90 days of card issuance, you will get 10,000 bonus reward points. However, you shouldn’t spend this much just for the sake of earning rewards. Consider your affordability and then proceed.