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Home > Money > Credit Cards Last Updated: Sep 10th 2022

Ways to maximise your credit card benefits

Credit Cards have offered us both Security and Convenience to Shop Online and maintain the Social distancing. Understand the benefits offered by the Credit Cards and tips on how to maximise credit card benefits such as Sign-up bonuses, advantage cards, Shopping points, low to no annual fees.

Ways to maximise your credit card benefits

Credit cards not only provide convenience to you, by offering grace period for paying dues, but it usually comes with a host of benefits for people to enjoy. If the credit card is used judiciously and payments are cleared before due dates, it can prove to be very beneficial. The smart usage of credit cards can help to reduce your daily expenses and spends, provided you manage to clear your full dues on time.

Also, with the ongoing pandemic our spending patterns too have changed. Mostly we shop online these days mainly for groceries and utilities. Credit cards have offered us convenience to shop online and maintain social distancing while shopping from the comfort of home. On every purchase the money you spend, certain credit cards offer you to earn points, which you can also use for shopping, travel or other purchases. Here are a few tips on how to maximise credit card benefits.

1. Sign-up Bonus

Most of the credit cards usually offer a great deal of sign-up bonuses which can be beneficial in many ways. There is a lot of competition in the market these days and if you apply for certain credit cards at the right time, it might help you to earn maximum reward points and help you to maximize the value of your rewards credit card.

Few examples of such kind are "0% Introduction Interest for the Purchases made during first 6 months" OR "Welcome e-Gift Voucher worth Rs. 4,000 on joining"

2. Multiple Cards

It is advisable to have multiple cards to get more rewards and benefits. Certain cards have more offers on certain products around certain period of time. If you opt for a single a card any card is good for you.

But beware of closing down credit cards too soon as it may hurt your credit score and hamper your ability to get new credit cards.

3. Benefit Category

Each card comes with different set of benefits. Different issuers offer different types of benefits around different times and on different products. The card issuers usually publicize the offers well in advance, in order to make people aware of it. For example, your credit card might offer you some percent of cashback for all your purchases in a particular month, or might even double the points if you do online shopping or go for a movie in the theatre.

Quick Facts

Credit Score plays an important role in getting a good credit card. What influence your Credit Score?

  • Credit Payment History: 35%
  • Credit Capacity: 30%
  • Length of Credit History: 15%
  • Number of Accounts you are maintaining: 10%
  • Frequent credit inquiries and other factors: 10%

4. Online Shopping

Most of the credit card issuers have either tied-up with the online players or have their own online shopping portals through which you can shop and can increase your rewards. Credit cards usually comes with a host of benefits but many a times the users are not aware or don’t pay much heed to it. Once you log-on to the issuer’s site, you will automatically be redirected to the shopping portal and any purchases made through your issuer’s shopping portal, will help you to earn extra points or miles, and won’t cost you any extra. A card that incentivises online shopping mainly on grocery and utility spending is highly beneficial these days as it is the need of the hour, with people mostly shopping online.

5. Everyday Expenses

If you use your credit card for daily expenditure instead of using cash, it will help you to earn many points or miles. Using your credit card for everyday expenses like gas, food, or for things that you would normally buy in the course of your everyday life, you can maximize your rewards and also avoid excess expenditure. The reward points can be used for travel or buying other products.

6. Annual Fee

Most people prefer to have a card with no annual charges but the fact is that cards that charges an annual fee usually provides better rewards than their lifetime free counterparts. So, before selecting a card check what you’re getting in return, compare it and then decide which card you want to opt for. There could be joining gifts, bonus reward points, among others and which may help to save more. Moreover, in most cases annual fee is reversed on purchase over certain amount.

Quick Facts

Will it hurt to check my own Credit Score periodically ?

Periodically checking your own credit score will not hurt your Credit Score.

When you check your own credit score by requesting a credit report, it creates a soft inquiry. Soft inquiry will not participate in credit score calculations. Generally checking once or twice a year is generally recommended to see any errors in the report.


While most credit cards provide rewards when wisely used, a failure to pay on time, or if you carry forward your credit card balance, will not only harm your credit score but wash away the benefits restricting you to reap the full benefits.

Disclaimer: This article provides an overview and general guidance, not exhaustive for brevity. Please refer Income Tax Act, GST Act, Companies Act and other tax compliance acts, Rules, and Notifications for details.