Credit cards have become an integral part of modern lifestyles. With easy access to credit and convenient spending options, they offer benefits like cashback and rewards. This is why people are increasingly relying on these cards to manage their expenses.
Some credit card issuers offer direct cashback on purchases, while others allow cardholders to earn reward points that can be redeemed later. Many people plan their big ticket expenses around these saved points to optimise their finances.
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While common tips and tricks for using credit cards are widely known, there are a few lesser-known ways to make the most of reward points, particularly when planning holiday trips.
Here Is What Cardholders Must Know:
With credit card points, you can reduce the overall cost of your flights and hotels. If you are careful with your bookings, you can effectively fund your trip partially with the money you have already spent elsewhere.
Before booking: Even if you have, let's say 25,000 points, do check how much of it your lender will allow you to use on each transaction. The point's value can also change depending on whether you book it via the bank's platform or a travel portal. So, be sure to compare flight offers to get the best deals.
Before transferring points: You must review conversion ratios, seat availability, blackout dates and transfer fees before moving your points. Once transferred, points may not be reversible and you can end up with a less preferred option.
Check genuine value: For flights, compare the points required with the cash fare. Using a large number of miles for a Rs 4,000 domestic ticket may not offer much value. These points could be better used for expensive international flights. Similarly, compare hotel room rates with points required before booking to ensure actual savings.
Stay updated: Always check the expiry rules before redeeming or transferring reward points. Credit card points may have a fixed validity period, while airline miles and hotel loyalty points can follow different terms. Additionally, you need to stay updated about the latest card change rules as lenders keep updating them periodically. This will help you plan your trip more easily.
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In any case, it is never recommended to spend more than what you require just to collect more points. If you buy something because you need points and not because that expenditure was justified, such financial mistakes can compound over time, as you are not really saving money.
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