Travel credit cards have become very popular in India due to the many rewards and benefits they offer for travellers. From accelerated reward points on travel bookings to additional cashback on dining and entertainment, these cards can unlock great savings. However, to truly maximise the value, you need to select and use your travel credit card mindfully. This article shares some of the best tips on how to earn and redeem the most from travel cards in India.
How to Maximise Rewards and Cashback on Travel Cards
Below are some of the best tips to maximise rewards and cashback after you apply for credit card online:
1. Choosing the Right Card
With so many travel credit cards in the Indian market, picking the right one based on your spending and travel habits is key. Here are some parameters to consider:
- Check which categories earn accelerated rewards – flights, hotels, dining, fuel, etc.- and align them with your expenses.
- See if rewards can be redeemed against travel purchases or only for vouchers, miles transfers, etc.
- Airline/hotel co-branded cards directly earn you loyalty points with the brand. They are useful for frequent travellers.
- Before finalising, don’t just look at welcome rewards. Consider annual, renewal, and forex fees.
2. Using the Card Strategically
After picking the right travel card, you should utilise it properly.
- All significant travel costs, including airfare, hotel bookings and train passes, should be put on your travel card in order to maximise the earned rewards.
- The card serves many purposes, such as grocery needs, entertainment expenses, etc.
- You should not use the card for utility bills and subscriptions since these categories do not provide rewards or benefits.
- You should never spend more than necessary to achieve travel rewards because debt from such excessive spending reduces any potential reward benefit.
- On-time full payment of outstanding debt prevents the accumulation of high interest along with late fees
3. Monitoring Reward Points Activity
Participants must actively follow the accumulation and redemption process for their reward points.
- Regularly accessing your credit card account will display reward points gained from current expenditures.
- Online banking users should bookmark the reward catalogue to discover top redeemable products.
- Use an Excel spreadsheet to document reward points acquired as well as redeemed points. Tally against statements.
- Monitor expiration dates of rewards to prevent losing already accumulated points.
- Contact the customer support team if you notice any missing spending transactions related to reward earnings.
4. Redeem Strategically
While redeeming rewards, keep the following in mind:
- Compare redemption value against different options like air miles transfers, hotel stays, retail vouchers, fuel surcharge waivers etc., before redeeming.
- Transfer miles to frequent flyer accounts during bonus transfer periods for better value.
- Redeem for the highest ticket denomination when booking flights and upgrade using miles.
5. Be a Disciplined User
The key factor for maximum rewards from credit cards is financial responsibility.
- The pursuit of reward points through excessive spending should never occur. Overspending can lead to card debt, which reduces the available savings when redeeming points.
- Settlement of all credit card payments in full should occur before the monthly due date. Interest expenses and late payment fees eliminate all reward benefits.
- Digital payment reminders through SMS and email can help users avoid late payment of their credit card statements. Banks also offer customers the option to use auto debit services.
Conclusion
Travel credit cards can be extremely rewarding, but you need to put in some work to maximise the value you can extract. From carefully evaluating your spending patterns and choosing the right card to use it strategically for reward-earning transactions to tracking your points activity and redeeming at optimal value – you have to be actively involved.
