Credit cards, if used responsibly, can help you save a considerable amount in the form of reward points, cashback, co-branded benefits or direct discount. Among all these options, rewards are possibly the easiest and the most popular way to get the most out of your everyday purchases. You can earn reward points every time you use your card and later redeem the accumulated points to avail vouchers, merchandise or cash credit. If you are applying for a credit card to get value back in the form of reward points, you should know the ways to make the most of the credit card rewards program.

Choose a rewards program that suits your lifestyle

To make the most out of a credit card, it is important to ensure that the benefits provided are aligned with your preferences. As different cards come with different rewards structures, it is important to understand your requirements, analyse your spending patterns and then shortlist cards that offer maximum benefits.

For instance, if you frequently travel, then getting a credit card that offers extra rewards for travel expenses would be the right choice for you. Similarly, if you spend a lot on online shopping, you should choose a card that offers higher benefits on online shopping. When the benefits of your credit card are aligned with your preferences, it gets easier to make the most of its rewards.

Use the right card for the right purchases

When you have multiple credit cards, it is important to understand the rewards program on each card and use the card that offers maximum benefits. For example, you have HDFC MoneyBack and SBI SimplySAVE credit cards and have to decide between the two for booking a movie ticket via BookMyShow. While HDFC MoneyBack card offers double rewards on online spends and BookMyShow would qualify for the same, SBI SimplySAVE offers 10-times more rewards on movies. So, in this case, SBI SimplySAVE would be the better choice.

Knowing the reward earning potential of your cards and planning your purchases accordingly will help you earn maximum reward points.

Keep a check on the expiry of your reward points

You should always keep an eye on your reward points in order to redeem them before they expire. Most credit card reward points come with a validity period, which means you have to redeem the earned reward points within the given period. After this period, your earned reward points will expire and you will not be able to redeem them.

You can find the details related to your reward points balance and their expiry on your monthly credit card statement. Most card issuers mention the number of reward points that are about to expire in the coming month so that you do not miss out on this benefit. You can also track your reward points by logging into your credit card net banking portal.

Look for a sign-up bonus

Most of the credit cards offer a sign-up bonus in the form of reward points. Sometimes, this sign-up bonus is worth more than the value of the joining fee. Hence, choosing a credit card that offers extra benefits might be more useful if your goal is to maximize your reward benefits. However, you should also consider the conditions applicable to avail this benefit. For example, to be eligible for the sign-up bonus, you may have to spend a certain amount of money after activating your card. Having said that, welcome bonus should not be the only factor when choosing a card. You must consider the benefits that the card would offer in the long run.

Explore redemption options

When it comes to redemption, you should always choose a credit card that allows you to redeem your reward points against various options, such as vouchers, flight or hotel bookings, recharges, shopping and more. You don’t want to get stuck with a limited number of options. For example, co-branded credit cards offer benefits or rewards only on the collaborated brand. Therefore, the earned reward points will be of no use if you are not a loyal customer of that collaborated brand. Also, if you prefer cashback, you must check whether you can use your reward points to get statement credit. You must look into the rewards program and its related terms & conditions to make the most of it.

Read the fine print

To get the full benefit of reward points, you should pay attention to the rewards program of your card issuer. Your card issuer can update the terms and conditions related to the rewards program as and when they like. Though the issuers will communicate these changes via SMS, email or in your monthly statement, it is important for cardholders to understand such changes and modify their card usage accordingly.

In conclusion, having a clear goal in your mind will help you find the right option and let you earn maximum benefits from it. If you want to make the most out of your credit card rewards, then you should analyze which credit card you should get and learn how to get the most out of its rewards program.

Apart from this, it is also important to have a good credit score if you want to avail premium reward benefits. Hence, making timely payments and managing your expenses can help you in improving your credit score and earn exclusive benefits.