Credit rewards can be one of the easiest ways to boost your financial profile without doing anything substantial. The lure of easy rewards is what prompts many card users to engage in impulsive buying, even when they do not require the product or service.
In case you are looking at ways to increase your credit rewards without burning the midnight oil, then look no further, as we give a complete run down to the ultimate strategies you need to maximize your credit earnings while making sure it never burns too big a hole in your wallet. Plus, we share a list of the top-3 cards that are making credits reward collectors going ga ga all over the UK.
The Types of Credit Rewards
Credit rewards can come in various shapes. While some give you instant cashback and cash bonuses, others prefer to issue vouchers that you may exchange for to get discounts, free airport lounge access, or travel perks.
Whatever the nature of rewards, something is universally acceptable – the more you spend, the higher the rewards points you will earn.
Before we get into the top strategies, remember to brush up your knowledge about top credit cards with credit cards explained.
The Top-4 Strategies to Collect Top Credit Rewards
Here are the top-4 tricks that top credit reward collectors employ to maximize their returns.
1. Never Leave Rewards Alone
It is a no-brainer that, to earn more, you have to spend more.
However, with the COVID-19 pandemic dampening consumer spirits across the world, you are likely adopting frugal means, which also means it will now take more time to accumulate points.
Before signing for a card that pays you high points, you should take a look at their terms.
Some cards allow you to accumulate points as much as you wish to, but lets you redeem only a part of it. Then there are cards which will keep on deducting points with time, even as you keep on adding points by purchasing more.
Hence, as much as you would like to feel happy about your points, make sure they are actually available when you need it the most.
Once you figure out the real balance, quickly spend it on purchases or in any other way the card terms permit. By consuming the accumulated points as quickly as you can, you are creating more room for storing points. It also means that any changes in card terms will affect you the least.
2. Select a Card That is As Flexible As You Are
Credit cards come in various shapes and sizes, quite literally.
UK card providers are one of the most dynamic you would find anywhere across the world. They understand that the needs of people are dynamic.
Hence, you can now get exclusive cards that respect the nature of your spending habits.
But, before you find out which card would offer you the best rewards, figure out your spending habits. Look at your monthly expense list or credit card statement to observe closely what you spend on the most.
If you are a family person who would like their house interior to be the best in the town, choose a card that offers you reward points for purchases made with retailers. If, however, you are a travel freak, then signing up for a card which gives you more miles and cashback can be your best bet.
Rather than choosing generic cards, an exclusive card would suit you more if you identify your spending habits accurately.
3. Go With the Trend, and Make Sign-Up Bonuses Your Friend
Look around, and you would find two categories of card users.
While the first type waits for years to accumulate points, the second, and the smarter ones, look for cards that offer the best sign-up benefits.
Timing is the most important thing for a smart credit reward hunter. They keep an eye for promotion periods to double their rewards.
Not all cards offer the same kind of rewards all the time. The best cards have a specific time to run promotions, which are often limited to a few customers.
Before selecting a card that offers you splendid rewards, look at the terms that come attached with it. Most high-reward cards are meant for liberal spenders. To determine the applicant’s worth, card providers look at their credit score and income profile.
Another thing that you must consider before grabbing the sign-up bonus is your nature of spending. Suppose you are a budget traveller and apply for a card that rewards foodies more, then you have to spend more on maintaining the card than the rewards you have got with the card.
4. Aim For a High Credit Score
A high credit score may give you wings, not literally, though.
Card providers love rewarding people with a high credit score. Not for any reason, though.
Data reveals that card-holders with respectable credit profiles are more likely to pay their dues on time. Hence, card providers lap up the opportunity to give them more spending power, which would increase their bottom line as well.
The credit score is a combination of several factors that show your financial strength. It includes payment history, available credit, credit used, and the length of the credit profile.
At this point, you must know that every time you sign-up for a credit card, the card provider runs a credit check which reduces your credit score by ten points. However, it would soon shoot up if you do not accidentally land yourself up on the defaulters’ list.
The Top-3 Cards That Gives You the Best Rewards
To make things easier for you, we scoured hundreds of cards and found the following three to be the best.
1. Amex Platinum Everyday
If cashback rules your mind, then Amex will never stop amazing you. It is fee-free, gives up to 5% cashback, and needs you to spend a lowly £3,000/yr to avail the benefits.
2. Amazon Platinum Mastercard
If shopping on Amazon is on your top-priority list, then you cannot stay far away from this card. For every £2 you spend on Amazon’s official website, you can earn 1.5 points. Plus, £10 Amazon gift card would further sweeten your sign-up.
3. HSBC Rewards Credit Card
If you an HSBC account holder, then this card can take you places. As soon as you sign-up for the card, your account will be credited with 2,500 points. To make it sweeter, you can earn up to 10 points for every £1 spent at empanelled merchant stores.
While credit rewards are a foolproof way to earn money for the things you normally do, sometimes cards cannot fulfil all your requirements. A loan eligibility check can help you discover additional ways to get money at low-interest.