Maximizing Rewards and Benefits

Getting a credit card is just the first step. To truly benefit from your card, you need a strategy to maximize rewards without falling into debt traps.

Best Practices for Credit Card Users

• Pay in Full: Always pay your total outstanding balance before the due date to avoid high interest charges (often 36-42% annually).
• Monitor Statements: Regularly check your statements for any unauthorized transactions or hidden fees.
• Use Reward Multipliers: Many banks have specific portals (like HDFC SmartBuy or SBI YONO) that offer 5x or 10x reward points on partnered brands.

Understanding Credit Utilization

Your Credit Utilization Ratio (CUR) is the amount of credit you are using compared to your total limit. A high CUR negatively impacts your credit score. If your limit is ₹1,00,000, try to keep your monthly spending below ₹30,000.