As per a JP Morgan report, the CAGR for the e-commerce sector in India is predicted to be around 26.5% until 2021. This means that the populace today increasingly prefers online shopping to its offline counterpart. With the growth of e-commerce in the country, the need for digital modes of payment has also increased.
Credit cards are a more favorable choice for online payments than debit cards. The best rewards credit card in India can help consumers avail discounts and rebates on their favorite items as well when used effectively.
- Cards, including both credit and debit cards, are the most widely used payment mode in India for online shopping.
- Almost 29% of all online transactions occur through these cards.
If you frequently use credit cards for online shopping, ensure you keep an eye on accumulated reward points. Using a few simple tips, customers can even maximize their potential to earn reward points from the online expenditure.
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Tips to maximize your reward points from online credit card expenditure
An individual can avail the best rewards credit card in India by following these pointers –
- Choose shopping cards
Regardless of which e-commerce site you prefer, if you enjoy online shopping, avail credit cards for the same. Such cards offer high reward points when utilized to shop for necessary products and items.
For example, if a regular credit card offers 1 point on shopping for items worth Rs.100, an online shopping-specific credit card may offer as much as 2 points at the expense of a similar amount. With these cards, you will end up accumulating points faster, which, in turn, will help you redeem for discounts in the future.
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- Utilize festive offers
Popular e-commerce websites have festive offers at several periods over the year. For instance, Independence Day sales and Diwali offers are common. During these times, credit card users are eligible for attractive cash backs or discounts on a range of products.
- Expected CAGR for credit cards in India is 53% up to 2021.
Thus, if you decide to buy when such a festive offer is underway, you can not only earn higher reward points but also save on the actual price of a product. This is one of the reasons you are smarter with a credit card in your pocket.
- Book movie tickets online
While a majority of movie lovers still buy tickets at the theatre, others use credit cards to book tickets for their favorite films. Online ticket booking is especially beneficial for credit card users since these often offer exclusive rebates on the actual price of the ticket.
For instance, the Bajaj Finserv RBL Bank SuperCard offers a flat 10% discount on all movie tickets purchased through it using a popular online portal.
- Unlock bonus reward points by spending more
If an individual wants to avail of the best rewards credit card in India, he/she can also spend beyond a particular threshold in a given month or year. This unlocks bonus reward points for the consumer. This threshold differs from one financial institution to the next.
Nevertheless, online shopping can help you unlock the full potential for your card’s reward points.
Things to remember about reward points
Maximizing reward point earnings online is a wise move. Nevertheless, one should also understand the best ways to redeem these points for rebates, cash backs, and discounts. Before availing such a card, ensure that you know how to redeem your reward points.
Further, keep in mind that these points may have an expiration date. Thus, if you fail to redeem them within a specific time, they will go to waste.
Regular and responsible usage of credit cards can lead to a brilliant credit rating for the owner. It is advisable to keep expenses under 30% of the credit limit to do so. A high credit score can also help cardholders to avail a higher credit limit.
