How to Make Money with Credit Cards?

Posted on Thursday, September 19th, 2024 | By IndusInd Bank

Many people often look at credit cards as a double-edged sword. While they can be convenient for purchases, they can also lead to debt if not used wisely. That is why it is crucial to use a credit card with care. By taking advantage of the benefits that credit cards offer, you can not only make money with your credit card but also earn rewards when you spend. 

It is not about magically ‘getting money’ from your card, but rather maximising its features to your advantage.

How to Make the Most of Your Credit Card’s Benefits?

Let’s explore how to make your credit card work for you.

1. Maximise Cashback Rewards

One of the easiest ways to ‘get money from a credit card’or increase your card’s savings potential is to maximise cashback rewards. Many credit cards offer cashback on specific categories, such as groceries, fuel, dining, and online shopping. For example, a card offering 5% cashback on groceries can lead to substantial savings over time.

2. Earn and Redeem Reward Points

Credit cards often provide reward points for every transaction made. You can accumulate these points for a variety of rewards, such as travel, merchandise, or even cash credit. You can also enjoy higher reward points for specific categories or by opting for a certain payment method. 

Consider the IndusInd Bank Platinum RuPay Credit Card, for instance. You can link this Credit Card with your UPI app and make UPI payments via the card. For every UPI transaction of ₹100 done via the Credit Card, you earn 2 reward points!

3. Make the Most of Interest-Free Periods

Most credit cards offer an interest-free period. If you pay off your outstanding balance in full within this period, you can avoid paying interest on it. This allows you to use your credit card as a short-term interest-free loan. Thus, you can keep more money in your pocket.

4. Plan Purchases During Promotional Offers

Banks often run promotional offers. This includes discounts, cashback, or additional reward points for transactions with specific merchants or during certain periods. You should plan big purchases during these offers to enjoy significant savings. For example, if your credit card offers 10% cashback on electronics during the festive season, consider buying major electronics during this time.

5. Redeem Reward Points for Travel and Experiences

Many credit cards allow you to redeem reward points for flights, hotel stays, and other travel-related expenses. You can accumulate points through regular spending and then redeem them for travel. This is a great way to offset your travel costs to a considerable extent. 

Some credit cards also offer additional perks such as complimentary airport lounge access, travel insurance, and concierge services. This can add further value to your travel experiences without making a hole in your pocket. 

Also Read: 5 Credit Card Features that Can Exclusively Benefit a Traveller Like You

Ways to Ensure Responsible Usage of Credit Card

If you search online for ‘how to make money with credit cards’, you might come across a lot of tips and tricks. However, the first financial advice for any credit card user is to use the card responsibly. Here’s how you can do that: 

1. Pay Your Balance in Full

If you pay your balance in full each month, you can avoid interest charges. It also ensures you are not carrying high levels of debt. 

2. Track Your Spending

It is crucial to avoid overspending and falling into debt. Review your credit card statements to stay within your budget and ensure you are only making necessary purchases. 

3. Stay within Your Credit Limit

Exceeding your credit limit can lead to over-limit fees and a negative impact on your credit score. It is important to stay within your credit limit and not use your credit card for unnecessary expenses. 

4. Use Reward Points Wisely

While earning reward points is a significant benefit of using a credit card, it is important to redeem them wisely. Also, avoid making unnecessary purchases just to earn rewards. 

With IndusInd Bank Credit Cards, you can redeem your reward points for a variety of purposes. You can make payments with your reward points and even enjoy cash credit. The best part? The reward points you earn with IndusInd Bank Credit Cards never expire! 

Conclusion

Credit cards offer many opportunities to save money and earn rewards. However, one must use them with care to maximise these benefits and avoid common pitfalls. 

Remember, the key is to track your spending, pay your bills on time, and stay within limits. Another key point is to choose the right credit card provider. IndusInd Bank offers a range of credit cards to help you save money while helping you manage your expenses.

Apply now for a Credit Card with IndusInd Bank! 

Disclaimer:

The information provided in this article is generic and for informational purposes only. It is not a substitute for specific advice in your 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 making any financial decisions based on the contents and information.