Eight Credit Card Hacks to Use Your Card Wisely

In today's world, many of us use a credit card for almost every spending category like fuel, travel, business, lifestyle, and entertainment. Here are a few credit card hacks to avail the best benefits from your cards.

Credit Card Hacks You Need to Know

These hacks for your credit card are not all-encompassing, but they are some of the most important ones. While the primary purpose of using a credit card is to get a float for 45-50 days on your expenses, another benefit is accumulating reward points. Here are some hacks to maximize these primary benefits:

1. Review Your Credit Cards

If you have multiple credit cards catering to various needs, choose the one that serves you best. Some credit cards come with annual fees, renewal fees, and other charges. Paying these fees for a card that doesn't meet your needs makes little sense.

2. Take Stock of Third-Party Programs

Many credit cards offer third-party services that provide extra points when you make purchases at participating stores and restaurants. Some cards offer lounge access, discounts on travel bookings, and free gifts on usage, along with accelerated reward points, cashbacks, air miles, or balance transfers. Review these benefits to maximize your card’s potential.

3. Spending Bonus

Many credit cards have threshold benefits if you spend beyond a certain limit annually. If you exceed this limit, you may receive extra reward points and benefits. Familiarize yourself with the terms and conditions of your credit card to make the most of these offers.

4. Expiry of Reward Points

Some credit cards offer rewards through redeemable points and vouchers that have an expiry date. Make sure to use them before they expire to maximize the benefits of your credit card rewards.

5. Register for Promotional Events

Banks, hotels, and airlines occasionally run promotional events. These credit card promotional programs provide benefits such as free hotel stays, additional air miles, and bonus reward points for travel. Take advantage of these events based on your needs to get the best out of your credit card.

6. Paying the Bills Before the Due Date

The most crucial credit card hack is to pay your bill on time. Every credit card has an interest-free period that allows you to manage your expenses better. Paying your credit card bill in full before the due date is important to avoid charges like late payment fees and interest on outstanding amounts.

7. Utilising the Balance Transfer Facility

If you haven’t paid your credit card outstanding amount in full and are stuck paying high interest on your outstanding balance, consider using the balance transfer facility. Many banks and NBFCs offer personal loans to pay off credit card debt at lower interest rates. You can also transfer the dues to a new credit card with a lower interest rate. Consult your financial advisor before making this decision.

8. Increasing Your Credit Limit

Your credit card provider may offer an upgrade on your credit limit. Opt for this only if you can manage your spending. Alternatively, you can request an increase in your credit limit. A higher credit limit can positively affect your credit score, as it lowers your credit utilization ratio when not overspending.