Every credit card company provides rewards to individuals on transactions. Individuals using a credit card often receive the most rewards. However, most individuals are not aware of the right usage. Eventually, the reward expires. If you struggle to find the best possible way to use your reward points, the blog may help. It lists the best ways to use credit card rewards for your needs.
9 Ways to use the rewards points profitably
Knowing the ins and outs of using credit card reward points helps capitalise on other benefits. Thus, you should never wait endlessly or the rewards expire. The following strategies may help you utilise the reward points profitably:
1) Get a credit card that meets habits
If you and your friend use a similar credit card, you may be using the wrong one. It is because what may work for one may not work for another. Thus, choosing a credit card that meets your financial habits and needs is critical.
The type of credit card you use determines the rewards you get. For example- if you use the reward points for groceries, you may receive similar rewards. For example, you may benefit from grocery shopping with Amazon. Alternatively, if one does not use it for this, it may be worthless.
2) Analyse the rules
Earning credit card rewards is useless if you don’t know the best ways to use it. Before signing up for any credit card, analyse the aspects you can use it for. Next, check the things for which the company forbade you to use the card.
For example, if you have a travel reward card, analyse the blackout dates and restrictions on booking flights and rooms. Check whether you must pay a commission on bookings. Additionally, analyse the credit card reward expiry dates. Check whether you can transfer the credit card rewards. Also, check about the limitations on the rewards that you can earn.
3) Keep an eye on offers
Stay informed on the latest offers from your bank or credit card companies. Major credit card providers share partnerships with prominent merchants. It may benefit you if you like products from the particular merchandise. However, these offers are time-bound but provide benefits. You may get more discounts apart from the existing ones on the products.
4) Book air tickets affordably
If you are a frequent traveller, use the reward points to book air tickets. Analyse the compare and booking sites providing the maximum benefits. Check how using the reward points may lower the amount. Additionally, check for combo offers like- getting seaside accommodation at discounted rates.
5) Check whether you can save the amount
Analyse the flexibility of transferring the reward cash into the savings account. If you get £300 or more as a cashback on your purchases, save it. You can use it for the emergency fund. It is ideal for individuals living paycheck-to-paycheck having minimal savings.
It will help you pay the bills, credit card dues, and rental payments. However, if the cashback is limited and you need £3000 more for rent, get a fast loan in Ireland quickly. It will help youget instant cash to pay the rent. Clear it the same day otherwise it could attract a penalty.
6) Use it for a Gift voucher
You can utilise the credit card reward points on gift vouchers. Analyse the ongoing gifts for the best possible costs online. You may get one on online flower delivery platforms, retailers, restaurants, and hotels. Additionally, you can use it to gift even big-ticket items.
For example, if you were searching for the best wellness treatment, search similar voucher. You can use credit card reward points to book a wellness treatment from a popular institute at low costs.
Similarly, check the reward points and use them according to your needs. You can leverage gift vouchers from gas stations, Spas, and food delivery services.
7) Take advantage of EMIs on payment options
Every credit card companies provide different payment options. Take advantage of EMI and other financing options. Analyse the merchant EMI programs that improve your shopping experience. You never know but your credit card does more than collect reward points.
Here, some individuals try to maximise the reward points by charging everything. Reward cards offer only a set number of points/miles or cashback on the money spent. However, it does not mean spending unnecessarily.
For example, buying multiple stuff at a discount may prove costly. It is because credit cards have high-interest rates. Thus, ensure responsible shopping through credit cards. Reward points may help you get things cheap but regulate the expenses.
8) Check the extras that “rewards” come with
Reward credit cards are just not about getting cashback. Credit card companies provide multiple benefits to the card owners. It may add up to your savings. Some companies provide additional benefits like- travel insurance, rental car coverage, product protection and other price guarantees.Analyse the extras you qualify for and how you may benefit from these.
Yes, getting travel insurance for your recent trip indeed calls for celebration. However, you must maintain regular premiums until the trip date. If you cannot, the insurance would not be worth it. You may have to grab a traditional insurance cover costing more.
Who would like to pay a higher premium?
Thus, ensure regular premiums on the insurance. If you cannot due to emergency expenses, check other ways. Contact the best money lenders in the Ireland marketplace for instant cash. The experts provide same-day cash to individuals in emergencies. They may help you with the ideal amount that you qualify for by analysing finances.
Additionally, some credit card holders may check- vacation package discounts, free concierge service or VIP access to entertainment and sports. What could one desire more? How about booking a trending movie ticket for half the price?
9) Use it as a charity
Some credit card companies and banks accept credit card reward points as charities. The bank utilises and converts the credit card points into cash. It donates the amount to charitable trusts. You can choose the charitable trust you want to contribute. It will help you help the poor and needy by donating the rewards to the charitable trust.
Bottom line
These are some best ways to use your credit card rewards wisely. Always analyse the impact on credit score before leveraging the reward. It will help you decide consciously and protect credit. Additionally, maximise the profits by listing your most important needs/ wants. It becomes easier to find discounts related to the wants or needs.
Caleb works as a senior content writer at Financealoan for the past 3 years. He is a writing enthusiast and invests a good time in exploring and writing about financial trends. His keenness in exploring a topic to create a research-based piece is simply unmatched. He believes in including a texture of authenticity with real-time examples and facts.
Caleb’s blogs and articles reveal deep-seated knowledge and expertise. His educational qualification forms the base of his excellent command over the industry and Jargon. He is a postgraduate in Finance and is currently involved in exploring the world of the stock market.
