Here Are Five Tips For Using Credit Cards Points Effectively

Credit cards help pay for services and goods. But what most of us don’t realize about credit cards is that they also help us save money. So, the selection of credit cards should always be done base on the offers they bring.

A credit card allows you to dine, travel, shop, and pay utility bills comfortably. But, when a cardholder has a deeper understanding of their credit card, they are in a position to make savings over each transaction made over the credit card.

Managing a credit card well is all about having a refined financial discipline. Let us take a look at some tips that help achieve the same. This helps maximize the gains achieved from the credit card.

Tips To Managing A Credit Cards Well Is All About Having A Refined Financial Discipline

Choose Wisely

Before finalizing a credit card to hold, an applicant should be doing some groundwork. The card should then be choose base on one’s goals for money saving and the exact requirements. One has to consider how to use credit card points.

Ideally, one should be going for a credit card that brings one higher reward over everyday activities like online transactions, shopping, and dining. Now, if one ends up paying high bills over utilities towards the end of each month, one should attempt to find a credit card that earns one more discount or cashback over utility bills. A co-branded credit card, similarly, is likely to make free hotel stays or free airline tickets for one.

Through Credit Cards Earning While Spending

Cardholders often use their credit cards to pay utility bills, such as electricity and telephone bills, and sometimes insurance premiums. But, this way, a dual benefit comes into the picture. Cardholders can conveniently pay their bills and are eligible for reward points or cashback.

Cashback of as high as 5-25% is make available on expenditures make over purchases, movie tickets, and bills for restaurants and utilities. Each credit card will offer cashback and reward points for different spending categories. To be sure about the same, one should carefully go through the terms and conditions section of the documentation along with the credit card.

Time Is Money

It is a best practice to always ensure that your outstanding credit card is paid on time in full. Otherwise, the savings or earnings made over the card may be compensated by the high-interest rates charged over the credit card balance.

One of the ways to go about it is to instruct your bank to automatically deduct the defined amount from your bank account on the due date of bill payment and maintain sufficient funds in your bank account at the time. Most credit cards will offer default features for this function. This practice will keep the credit score healthy and takes away the fear of delays in making credit card payments.

Leveraging The Rewards Points To Your Best Advantage

Reward points are associated with a range of freebies that they can get for one. This includes gifts, dining benefits, vouchers, hotel stays, travel fares, etc. Another top way to use reward points is to use them for charity.

Now, when considering how to use credit card points, one has to be sure regarding the rewards policy of credit cards. One should log on to the bank’s website and review the rewards catalogue.

One should be doing some planning in such cases. This way, your credit card will accumulate sufficient points and deliver the essence of your purchases.

Impulse Purchases Are To Be Avoided

Reward programs have been implemented to encourage customers to spend more. But, impulse purchases are best avoided.

A cardholder should bear a strong cognizance of their spending limits and not overstep the same. One should be aware of what one can pay off comfortably and make spending accordingly. 

Instead, when the cardholder delays paying the outstanding bill on time, the debt can spiral reasonably fast and increase the financial burden for the cardholder.


Using credit card reward is very simple and effective. A credit cards holder can redeem their reward points in their shopping bill or in credit card charges. So, it’s totally depends on you which is more beneficial for you. You can use it in your shopping or for credit card annual charge.

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