Credit Card Rewards program- Maximise your gains

Credit card reward programs

Signed up for a Credit Card lured by the promise of amazing rewards scheme but have yet to experience the benefit? Maximize your rewards on Credit Cards in 5 days.
Day 1: Do you have multiple Credit Cards? Usually, using multiple cards simultaneously will stop you from realizing the maximum benefit of any reward program. However Top 3 reasons for keeping multiple credit cards could be:
•    Promise of a benefit/ reward on sign up. For eg:25000 skywards miles or a freebie.
•    A regular scheme or reward available that you can use. Like, free movie tickets, dining offers, lifestyle offers etc.
•    Using a Card for Balance Transfer. If you have used one card for a Balance transfer, it is best to use a different Bank’s Card for all other expenses. This is to ensure that you get benefit of the low rate of Balance transfer and other easy payment options.
If you keep Cards for reasons other than these, chances are you are losing out on realizing the maximum benefit from the rewards program. Click on the link to read more.
Assuming that your 3 Credit Cards have the same reward structure :


Rewards Structure of Credit Cards
1% on spent upto AED 10,000
2% on spent b/w10,001- 25000
3% on spent above AED 25000


Lets see how we can maximize rewards earned with the same amount of spend by using one or multiple credit cards.


Monthly Spend:25000     
Card A
Card B
Card C
Rewards Earned
Scenario 1 5,000        10,000 10,000  


Earned@1%on each Card separately as AED 50, 100 &100

Scenario 2 20,000 5,000 0


Earned@ of 2% on Card A and 1% on Card B

Scenario 3 25,000 0 0


Earned @3% on 25000



Spending on one card on a month should get you more rewards and benefits than spending the same amount on multiple cards.


Day2: Do you know the billing cycle for your Credit Cards?
A billing cycle is a 30-31 day period for which you are billed every month. It’s fixed by every Bank and is different from the due date mentioned on the Card statement. If you settle your card payments in full every month then try and max out expenses in one billing cycle to be eligible for maximum rewards tier that month. If you do not pay the full amount every month, you can still follow the same philosophy as long as you don’t go over limit.
Assume that your billing cycle is 10th Feb to the 20th March and payment due date is 6th April. Sometimes banks are unable to consider the transactions done in the last 2-3 days of a billing cycle due to technical reasons. Try and spend on the big expenses, 2-3 days before 20th March (i.e. the last date of billing cycle) to ensure reaching the maximum reward tier that month.


Day 3: What is the value of rewards earned?
Do you know the conversion ratio of reward points to miles or cash? Every Bank discloses this and redemption options differ between banks and even for the same credit card. Essentially this means, 10,000 reward points earned on a Credit Card could convert to AED100 cash or coupons to Choithrams for AED75 or 150 skyward miles.
Before using your Credit Card, find out the reward programs on it and the conversion ratio for each option.


Day 4: What is the minimum amount you pay with a Credit Card?
Some use a Credit Card for a purchase of at least 50 bucks. You can use it even for paying AED20.Whatever you buy- from grocery to phone cards, use your credit card instead of cash and you will see an increase in rewards earned and a detailed bill at the end of the month for review. Needless to say, you need to know your budget and spending on a Card. Find your limit by using our Borrowing Power Calculator.


Day 5: The gist on how to get maximum rewards: Understand the rewards structure, know your billing cycle, use Credit Card instead of cash (stay within your spending limit by using Borrowing power Calculator) and use 1 or maximum 2 credit cards.

Write to our experts to understand how to realize the most from your Credit Cards.