5 simple hacks to supercharge your credit card rewards today | Mint

Credit cards are now an integral part of modern money management, as they offer not only security and convenience but also opportunities to save cash and get rewards. You may maximize the benefits of your credit cards with the right strategies. Here we will look at valuable tips, tactics, and considerations to maximize the use of your card.

Basics of credit cards

First off, you have to know some basic concepts that you must be familiar with before you start hacking:

• Rewards programs: Most credit cards offer you the chance to earn rewards on your spending, in the form of cashback, points, or miles for your purchases.
• Credit limit: The amount that you can charge with your credit card is known as your credit limit.
• Interest rates: The cost of borrowing money if you have a credit card balance.
• Credit utilisation: It refers to the percentage of your available credit that is being used in a scenario; conversely, higher utilisation can lower your credit score.

What are credit card rewards?

Credit card rewards are provided by issuers for encouraging usage. For each transaction, you make cashback, points, or miles, redeemable for the purchase of goods, gift cards, travel, or bill credits. Essentially, rewards give you something in return for your normal expenditures, thus making them valuable benefits.

5 key hacks to maximise rewards on credit cards

1. Use multiple cards: To diversify your credit card portfolio, you must diversify spending areas and incentive schemes. This way, you are guaranteed to benefit in all areas of spending.

2. Utilize associated payment systems: Several credit card providers are connected to specific payment gateways, which offer some rewards outside of mere points. Use these platforms to pay for contractor fees, rent, and other expenses that have no better chance of earning rewards.

3. Pay all your bills regularly: Charge your credit card for every possible expense to show discipline. Paying bills with your card during the grace period increases your cash flow and earns you rewards. Ensure you pay off your card in full each month to avoid interest fees.

4. Use rewards wisely: Winning points is just half the battle. The other half is how to use them wisely. Discuss redemption options that your card offers, from cashback and gift cards to travel booking and bill credits.

5. Track expirations: Many incentive plans come with rules for expiration-this is to mean that if, in a point of time points or miles unused expire, this makes them lose their value. Monitor what happens to points and miles rewards before they have time to decay.

In conclusion, knowing how credit cards work can transform run-of-the-mill spending into lucrative rewards using shrewd tactics. Utilize your credit cards smartly, pay the bill in full before its due date to prevent being charged with interest, and the tricks of a credit card will help turn your card into a wonderful financial companion, beyond a method for payment only.

(Note: Using a credit card carries its own set of risks)