How to Use Credit Card to Maximise Cashback Rewards?

Posted on Wednesday, June 7th, 2023 | By IndusInd Bank

Credit cards have become the most popular method of payment in the country over the past few years. Credit cards offer convenience, security, and various rewards programs which make managing day-to-day finances a breeze. One of the most enticing benefits of using credit cards is various cashback rewards they offer. By understanding how to strategically use credit cards, you can make the most of these cashback benefits. Read the blog to learn effective strategies that can help you maximise cashback rewards on your credit card. 
 
Choose the Right Credit Card 

To get started with earning cashback rewards, the first step is to select the right credit card. Find a credit card that offers competitive cashback offers and aligns with your spending habits.

Consider cards from prominent industry leaders like IndusInd Bank, which allow you to tailor your rewards basis the categories you frequently spend on, such as groceries, shopping, dining, or travel. Additionally, check for any welcome offers or promotional offers that can boost your cashback earnings. 
 
Spend Smartly 

Typically credit cards offer different cashback percentages across distinct spending categories. If your credit card offers higher cashback rewards on groceries, consider doing a bulk purchase or shopping at stores that are eligible for the offer. And if your card offers more rewards on dining, plan your hangout at one of the eligible partner restaurants.

Therefore, it is important to familiarize yourself with the cashback rewards that your card provides on a specific category. By understanding this, you can prioritize spending on categories that offer more cashback rewards with your credit card. 
 
Utilize Welcome Rewards 

Many credit cards offer attractive welcome rewards to new customers. These rewards are generally offered in the form of shopping or travel offers, and even as statement credits. If you are planning a big purchase, timing your credit card application strategically can help you capitalize on these benefits. 
 
Take Advantage of Promotional Offers 

Credit card providers frequently run promotions and limited-period brand offers that allow you to earn cashback rewards on your spends. These may include purchases such as online shopping, purchase of electronic gadgets, and more. Stay updated with your credit card offerings to take full advantage of these opportunities and maximize your cashback earnings. 
 

Use Multiple Credit Cards 

Using multiple credit cards can be an effective strategy to optimize your cashback rewards. By owning cards with different reward plans for distinct categories, you can diversify your spending and earn cashback rewards on most of your purchases.

However, it is important to manage multiple cards responsibly and keep track of their respective rewards programs, due dates, and linked fees. 
 
Always Pay Your Balance in Full 

To make the most of cashback rewards, you must pay your credit card balance in full and on time each month. Carrying a balance and paying interest on your outstandings will offset the benefits of cashback rewards. Thus, maintaining disciplined financial habits and avoiding unnecessary debt is the ideal approach to using credit cards. 
 
Conclusion 
Using credit cards to earn cashback rewards is a smart way to managing your finances efficiently. By choosing the right credit card, spending smartly, and taking advantage of promotions, you can maximize the cashback rewards.

Remember to always pay your credit card balance in full every month and review your credit card offerings regularly to check if they still align with your finances. By following the above-mentioned tips, you can turn your credit card spending into a rewarding experience. 

If you’re looking for a credit card that encompasses all the benefits and rewards to match your lifestyle, check our offerings and you’ll definitely find your ideal pick. IndusInd Bank offers a range of lifetime free credit cards that come backed with the ‘Total Protect’ program. With this, you can rest easy knowing that any fraudulent transactions made with your card will be fully covered. Total Protect includes coverage for unauthorized transactions in case of card loss or theft. Also, you get to enjoy exquisite privileges and earn reward points that never expire on all your spends.  

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Disclaimer: The information provided in this article is generic in nature and for informational purposes only. It is not a substitute for specific advice in your own circumstances. Hence, you are advised to consult your financial advisor before making any financial decision. IndusInd Bank Limited (IBL) does not influence the views of the author in any way. IBL and the author shall not be responsible for any direct/indirect loss or liability incurred by the reader for taking any financial decisions based on the contents and information.