The capacity to make purchases and establish credit are just two of the many advantages that credit cards provide. The perks that come with using a credit card are one of the most alluring advantages. Rewards from credit cards can be redeemed for a variety of benefits in the form of cashback, and loyalty points.
Understanding your credit card payment cycle and how it affects your ability to earn and redeem rewards will help you make the most of your rewards program.
On that note, let’s get into the details of the credit card billing cycle and how it can help you get the most out of your rewards.
Understanding Your Credit Card Billing Cycle
Read on to explore how knowing your credit card billing cycle can help you get the most out of your rewards in 2023.
- Know Your Billing Cycle
Your credit card billing cycle is the period of time between your credit card statement. It usually lasts between 28-31 days, depending on the credit card issuer. Understanding your billing cycle is essential for maximising your rewards. This is because most credit card issuers calculate rewards based on the purchases made during a billing cycle. Knowing your billing cycle lets you plan your purchases and payments to ensure you earn the maximum rewards possible.
- Pay Your Balance in Full
Making a full payment on your amount each month is one of the actions you can take to maximise your benefits. You can prevent interest fees that could reduce the incentives you receive by paying off your entire balance. A strong credit score is also maintained by paying your balance in full.
- Timing Your Purchases
To maximise your rewards, it’s important to time your purchases strategically. You can do this by making larger purchases early in your billing cycle. This gives you more time to earn rewards before your statement closes. For example, if your billing cycle starts on the 1st of the month, you may want to make larger purchases in the first week to give yourself more time to earn rewards.
- Use Bonus Categories
Numerous credit cards provide bonus categories that provide greater rewards for particular kinds of transactions. For instance, some credit cards provide added incentives when you spend money on things like groceries, petrol, or travel. It’s critical to understand when these bonus categories are active if you want to optimise your benefits. To learn which categories receive greater benefits, be sure to read the terms and conditions of your credit card.
- Recognise Reward Redemption
Credit card rewards can be used to obtain a variety of perks. It’s important to comprehend the accessible redemption possibilities and pick the one that offers the best value for your requirements if you want to make the most of your rewards.
For instance, if you travel frequently, you might want to get a credit card that allows you to redeem travel rewards. As an alternative, you might wish to pick a card that offers cash back incentives if you like that type of reward.
What Are the Advantages of Credit Card Rewards?
Credit cards offer many advantages, including the ability to earn rewards on everyday purchases and access to benefits such as airport lounge, travel insurance, and discounts on hotel bookings.
To maximise rewards, it is suggested to make purchases early in the billing cycle and pay off the balance in full every month to avoid interest charges and make sure to leverage the credit card interest-free period. Keeping track of reward points balance and redemption options is also crucial to ensure you can redeem rewards for maximum value.
Conclusion
You may optimise your benefits and minimise unauthorised fees and charges by being aware of your credit card payment cycle. Pay attention to your payment cycle, spend early, settle your account entirely, and keep up with your points and redemption possibilities.
By following these suggestions, you may maximise using your credit card and take advantage of its benefits. To prevent interest costs and possible debt, always use your credit card wisely and complete your monthly payment on time.