Credit Cards: What are the key tips to maximise cashbacks and rewards? | Mint

If you have started using a credit card, you must be aware that there are quite a few options to claim cashbacks and rewards. It is, meanwhile, vital to note that one can maximise credit card cashbacks and rewards by being a little more proactive and smarter.

For instance, if you leverage bank-specific offers, or focus on category-specific offers – you can get the most of these rewards. The other ways to leverage these rewards and cashbacks is to claim renewal bonus, and put utility payments on auto-payment mode, among other methods. 

Here we share key tips for maximising the rewards:

1. For spending habits: It is recommended to opt for cards such as HDFC Bharat Cashback, SBI SimplySAVE, or Axis Bank ACE, which offer high cashback/rewards on utility and daily expenses. Additionally, you can also look for cards such as IndianOil Citibank or BPCL SBI Card for fuel-specific benefits.

2. Category-specific offers: These are also some credit cards such as Flipkart Axis Bank which offer cashback/rewards on purchases from their respective platforms. For dining, one can also use cards such as HDFC Regalia or SBI Card PRIME for dining discounts and accelerated rewards.

3. Bank specific offers: Conventional wisdom also suggests that one look out for deals which are active in festive season and offer bank tie-ups with merchants. Some banks tend to give extra cashback or discounts when you shop on online marketplaces such as Amazon, Flipkart, Myntra, or Paytm.

4. Accelerated rewards: One can also pay through specific card-linked apps to earn bonus rewards. Some cards even offer up to 10x points for premium dining, travel bookings, and shopping at partner outlets.

5. Utility bill payments: One can also set up standing instructions on your card for utility payments to earn cashback. This means the bill payments will be carried out automatically every month without any manual intervention. Additionally, this also ensures that you do not have to incur a late fee.

6. Welcome and renewal bonuses: It is also advisable to check for cards with lucrative sign-up bonuses such as travel miles and free vouchers to make sure that you justify the annual fee with these benefits.

7. Avoid overspending: You can use a minimum of 30 to 50 per cent of credit limit but you should avoid overspending to earn rewards. You should keep track of due dates to avoid interest charges.