Credit cards are quite valuable for consumers who use it responsibly. You can get value-back in the form of reward points, cashback or direct discount, along with additional perks around travel, dining, movies, and more. However, if you use your card irresponsibly, it can quickly lead to a debt spiral that, in turn, may damage your credit score. To help consumers make the most of their credit cards, here we have listed the six ways to maximise credit card benefits.
Choose the right credit card
Nowadays, numerous credit card options are available in different categories like travel, dining, shopping, movies, etc. The first step towards smart credit card usage is finding a card that aligns with your spending patterns and offers significant value-back on your top spending categories.
For example, if you prefer online shopping, a card that offers accelerated rewards/cashback on online spends could help you save a lot. Similarly, frequent travellers could find great value in cards designed for travel as they may be co-branded with airlines or travel portals or offer general travel benefits.
Getting the right card and planning your purchases smartly across different categories ensures you maximize each card’s saving potential.
Pay your bills in full on or before the due date
Many people are wary of credit cards and advise others against taking credit cards thinking it leads to debt. However, credit cards do not cause debt; reckless usage does.
You must always pay the total amount due on your credit card. When you pay only the minimum amount due, you would not have to pay the late payment charges. However, the remaining amount attracts finance charges, which can range from 20% to 50%, depending on the card variant. Since credit card finance charges are high, even a small balance can lead to a debt spiral that is quite difficult to manage. Hence, it is important to spend only as much as you can afford to pay back on time.
Make good use of additional perks
While rewards/cashback program is the core benefit on any credit card, perks like complimentary airport lounge access, hotel and other memberships, dining discount, movie discount, golf access, concierge services, etc. can also amount to significant savings. For instance, if you are a frequent traveller, using the complimentary lounge access feature can make your travel more convenient without the additional cost.
Suggested Read: Best Lounge Access Credit Cards in 2025
Similarly, for golfers, access to golf courses with waived/discounted green fee could be quite helpful. When you use the additional benefits on your card, you can easily save enough to compensate for the annual fee that you pay.
Leverage the EMI facility for big-ticket purchases
Credit cards can be quite helpful for consumers who wish to make big-ticket purchases such as appliances or gadgets, but do not wish to pay the entire amount upfront. Using the Merchant EMI feature, you can make purchases and pay off in easy instalments over the period of a few months. Several leading platforms offer no-cost EMI facility where you can convert the transaction into EMI without any interest charges.
Card issuers also provide the option to convert your outstanding amount into EMI, which can be helpful in cases where you cannot afford to pay the bill in full. Though this facility comes with additional charges, it would be better than missing a payment or paying only the minimum amount due.
Plan your purchases smartly around the interest-free period
Credit cards come with up to 50 days of interest-free period and different credit cards have different billing cycles. To manage your monthly cash flow smartly, you can plan your high-value purchases around different credit cards, thus making good use of their interest-free period. For example, if the statement date on one of your cards is the 1st and the due date is 20th, then you can plan a purchase earlier in the billing cycle to avail the full interest-free period.
Track and redeem your rewards timely
On most credit cards, reward points come with an expiry date, which is usually counted from the date of earning. Card issuers show the reward point balance in your monthly statements, along with the number of points that are going to expire soon. It is important to track your reward points and redeem them timely.
Also Check: Best Rewards Credit Cards in India
While maximizing credit card benefits is important, you should not splurge on unnecessary purchases just for the sake of earning value-back. Spend only as much as you can afford to repay timely. Do not max out your credit cards regularly; instead spread the spends across multiple cards to maintain a good credit utilization ratio (CUR) on each card. Check the benefits on your cards before making a purchase to see which cards offers maximum value. Spend smart.
