Before the plastics, i.e., the cards,
money had ruled the market. In the year 1980, The Central Bank of
India launched its first Credit Card of Visa brand, and thus, the
Indian society was introduced to the concept of credit cards. Ever
since credit cards have come a long way in terms of their
functionality and offerings to the customers. Today, customers with a
credit card are offered various schemes.
Cashbacks and Reward Points are 2
aspects of a credit card that banks are leveraging on. Depending upon
the transaction size and type of purchase through a credit card, banks
offer reward points to customers. These points can be availed in the
form of cashback, vouchers, discounts, etc., on the next purchase.
In a nutshell, Cashbacks and Reward Points are incentive programs for
the customers where a percentage of the amount spent is paid back to
the cardholder. It is a rebate from the current purchase that can be
applied as a discount on the next purchase. To make the most of the
scheme, it is imperative customers know handy ways to maximize
cashback through credit cards.
5 handy points to remember-
The Right Card- There are numerous options of credit cards in
the market, single or co-branded, and it is vital to choose the card
that offers you the best interest rates, offers, reward policy, etc.
Financial Institutions offer co-branded credit cards, for eg:
Flipkart and Axis Bank offer a co-branded credit card with unlimited
cashback. Co-branded cards can fetch reward points which may be as
much as 5 to 10 times higher as compared to most other cards. Hence,
choosing your card wisely is necessary.
Monthly Bills & Big Purchases- Choose a card that offers
an array of options and fetches you points or cashback while paying
your monthly bills and everyday expenses. Paying bills through a
credit card in stores, petrol pumps, airlines, etc can fetch you a
considerable amount of cashback. For eg: If you make a monthly
purchase of Rs 5,000 and receive a 2% cashback, i.e., Rs 100 per
month, by the end of the year, the total will amount to Rs 1,200. It
is a good amount to add to your savings year on year. Similarly,
paying through credit cards for high-value purchases results in
Festivity Rewards- Follow and keep an eye on limited period
offers that are often seasonal. For eg: During Diwali, through
cards, banks offer an array of services, products, cashback options,
etc., that one may not find on other days. Seasonal cashback is
higher than usual and hence, is highly recommended.
Adjust on Pending Cashback- Cashback and Reward Points often
lapse after a certain period and hence, it is advisable to keep an
eye on the dates and utilize the points accordingly to take
advantage of various benefits.
Multiple Credit Cards- Having multiple cards ensure more
benefits as multiple banks partner with a single service provider.
These service providers may offer different services, offers,
rewards, etc., to each bank and hence, having multiple cards allows
you to leverage benefits of your choice. Furthermore, having
multiple credit cards also helps you to Improve your
With a little time spent towards strategizing your expenditure, one
can rack in more cashback and reward points than ever!