Co-branded Credit Cards come with attractive rewards points. You have some Credit Cards that allow you to select from a menu of categories for bonus rewards. Some people love to stack up to their groceries. Some love to dine out frequently. Therefore, it becomes crucial to choose bonus categories for your rewards Credit Cards.

Let us discuss some things you should know to get the best out of your rewards Credit Cards.

Understand the structure of your rewards Credit Card

Understand how the rewards Credit Card structure works. Learn how to select card reward categories. Specific programs allow you to set it once and it becomes permanent. Other cards let you choose the structure on a quarterly basis. On the expiry of the quarter, it reverts to a baseline. Some Credit Cards allow you to select bonus categories at a glance.

Know when to select the categories

It is advisable to put a reminder in your calendar program. Some cards allow you to select these categories quarterly whereas some like the American Express Business Gold Rewards let you choose them annually. The banks send you reminders. You can also incorporate a reminder on your smartphone as well.

Understand your past behaviour

Your history of spending determines the way you will do so in the future. Do you have a habit of raking up substantial grocery bills? Do you spend a lot on fuel? Your transaction record provides the perfect base for your future spending? Study your business expenses to ensure that you choose the right categories.

Do not ignore seasonal spending

Identify your seasonal spending and choose your bonus categories accordingly.

  • You tend to travel during vacations in April-May and November-December. Hence, you should concentrate on travel and dining cards.
  • The months of June to August are when you spend more at bookstores, office supplies, and children clothing.

These expenses are over and above the normal spending habits. Check out what you spent at this particular time of the year. Hence, choose your categories such as shipping, travel, and advertising, and so on.

Understand the categorisation of your transactions

Be aware of how your Credit Card issuing bank categorises your transaction. It can make a difference to your bonus rewards. For example, if you buy petrol at a proper fuel outlet, it counts as fuel whereas it categorises the same as a grocery item if you pick it up at a departmental store. Similarly, having your snacks at a departmental store is a simple grocery item whereas dining at a select restaurant qualifies you for receiving bonus rewards.

Understand this variation as it makes a difference to how you earn your rewards.

Keep your communication channels open

Banks and Credit Card issuers provide facilities like SMS and email alerts about the accumulation of your bonus rewards points. It can help you to maximise your savings. Check your Credit Card account regularly and be online all the time. You can verify the categorisation of your bonus rewards regularly. You also become aware of categories you did not know otherwise.

Do not hesitate to ask help to rectify misclassifications

Mistakes do happen. You might have bought an expensive appliance hoping that you receive a bucketful of bonus rewards points only to find that you have not classified it in the right reward points head. It is a genuine mistake that can cost you a lot of money. Rectifying such errors is easy. Contact your card issuer and explain the facts while requesting for redressing the misclassifications. Banks do help out if it is not a regular occurrence.

Look at the spending limits

Specific Credit Cards have spending limits category wise after which you go back to the default rate (1 point for every Rs. 100 spent). Some Credit Cards do not have any such ceiling on spending. Knowledge of these spending limits can help you plan your spending on the cards. You will be aware of the number of points you earn on the particular transaction. You can even postpone your purchases until the next cycle.

We have seen eight tips that can help you choose the bonus rewards points wisely. Visit the website of credit card service providers like MyMoneyMantra and compare the various products on a single screen before you Apply for a Secured Credit Card Online.

To apply online for Credit Cards, Secured Loans and Unsecured Loans, visit, the leading online lending marketplace that offers financial products from 60+ Banks and NBFCs. We have served 2 million+ happy customers since 1989.

Also Read: Best Credit Cards for the Shopaholic You!

Talk to our Loan Specialists toll-free at 1800 103 4004 to know more about our products and offers.