Simply owning and using a credit card is not enough, the focal point should be learning how to optimise your spending across all the credit cards that you own. This will help you unlock maximum rewards, cashback and other available benefits extended to categories like grocery, travel, movies, dining, online shopping and many more.
For such optimal card usage, it is important to plan ahead and divide the spending categories among your credit cards depending on the benefits they offer. For instance, if ‘Card A’ offers accelerated reward points on utility bill payments, while others either come with a base rate or do not offer any value-back on these spends, using this card for bill payments would be the right choice. Similarly, if both Cards A & B offer good cashback on online spends, but one of them has a low capping, then using the other card beyond this capped value will help you keep getting good value-back.
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Given below is a peek into how this credit card strategy can be applied practically in real life. Here, an individual divides their spends throughout the week among four different credit cards – Flipkart Axis, YES Bank PaisaSave, Airtel Axis and IDFC FIRST Power+, thus leveraging each card’s rewards categories and benefits to maximise savings on every spend.
