Optimizing 3 Credit Card Promotions in a Smart Way

The best credit cards are those that often offer promotions. Moreover, the promotion usually lasts for the long ride and keeps on coming, meaning there will always be something new when the old one ends.

Now, it is like almost every bank is aggressively offering the best credit cards that offer various promotions to attract a lot of customers. Of the many promotions, the form of the offer can be grouped into three types: cashback, points, and 0% installments.

However, many people do not really pay attention to the benefits of this credit card promotion. Credit cards are only used for shopping and nothing else. Sometimes, they forget to optimize the benefits of credit card promotions.

After all, the credit card can actually be used as a tool to achieve a qualified financial target, not just for consumption alone. Here are smart ways on how to optimize the benefits of your credit card promotions.

1. Cashback

Cashback is a credit card promotion in the form of returning a portion of funds from transactions made using the credit card. For example, there is a 5% promotion cashback if you shop at a particular supermarket. You spend 10,000 USD for shopping, and then you can expect a cashback of 500 USD sent into your credit card balance.

However, much to your dismay, banks also set specific requirements for cashback. For example, there is a maximum value in a month or that the cashback is only given once a month. To optimize the benefits of credit card promotions in the form of cashback, you should collect the funds for up to a year so that the value is even greater. Remember that even though cashback funds cannot be issued, it is still able to be used to pay bills and annual fees.

Also, be careful about the cashback's requirements. There are banks that provide cashback based on nominal transactions. The greater the transaction value, the greater the cashback. For example, 3% cashback for transactions up to 1,000 USD and 5% cashback for transactions up to 1,000 – 5,000 USD and so on.

Maximum cashback benefits can also be obtained if you use the best credit card that focuses on cashback programs. This type of credit card is for those of you who like to hunt for cashback.

2. Points

Similar to cashback, points are given for each transaction using the credit card. Credit card promotions in the form of points can be exchanged for various facilities starting from airplane tickets to free annual fees.

Points are given if a credit card is used for shopping, especially at merchants that work with the bank. The greater the transaction value, the more points you obtain. Usually, this point is only valid for a year. After a year, the points are forfeited. Therefore, to take maximum advantage of this credit card promotion, you have to make a target of what kind of point will be exchanged for something.

After that, use your credit card as per usual but remember not to get caught up in the lust of consumption only to pursue points. If you do that, the benefits cannot be taken to the maximum. Fortunately, there is one trick to adding points without spending money. For example, there are friends or relatives who want to buy something, offer to pay for using your credit card. That way, you can get points without spending a penny.

3. 0% Installments

Credit card promotions in the form of 0% installments are very appealing especially when you have been dealing with a lot of finance companies or online digital platforms that serve high-interest loans. 0% installment means that there is no interest on installment payments every month until it is fully paid off.

For example, you want to buy the brand new iPhone for 1,200 USD. If the merchant who sells the cellphone has a 0% partnership with the bank issuing your credit card, you can pay in installments according to the basic price.

The smart way to optimize the benefits of credit card promotions is to look at needs, meaning you only use it to buy items that are needed and not desired. For example, you have a cell phone that has often restarted itself or been so slow because it is too old. It means you need a new cell phone. The even worst scenario is if there is an emergency situation, for example, a family member who just had an accident and your old cell phone suddenly turned itself off. It could be fatal as a result of not being able to immediately contact an ambulance.

Credit card promotions should be able to be used by all cardholders in order to reap maximum benefits. Even so, it must be remembered that credit card promotions are closely linked to the appetite for shopping. That is why you need to prepare the bridle first before moving to swipe the card to make ends meet.