How to make the most of your credit card reward points?

Customers redeem their points by way of transfers on annual fees on many occasions, and avail discounts in partner outlets, he said. It is beneficial to redeem your points in a way that is more beneficial, for example, if you are a frequent traveller, redeeming your points for discounts on hotels rooms would help cut other costs.

Nov 20, 2015 07:11 IST India Infoline News Service

Most companies have a customer rewards scheme to build customer loyalty towards their brand. One way to achieve this is by rewarding the customers with points for every purchase. Credit card companies are not any different; clients earn allegiance points for a given value spent on their cards. Here are four pointers to make the most of the credit card rewards points scheme.

Charge structure
The primary source of revenue for credit card companies includes fees, interests, and penalties. Companies with “better” reward schemes charge higher interests and penalties.  Disciplining your expenditure and repayment time helps avoid unnecessary charges while earning the points.

Validity period of points
Many companies have an expiration period for unused reward points. It would be a loss to lose reward points. A check on the validity period helps one know about the reasonable expiry terms and what best fits one's needs.

Do you need to spend more to earn more points?
Loyalty points are usually a fraction of the money spent, for example, 1 point for every Rs 100 spent. In most schemes, customers are required to reach a certain threshold prior to earning loyalty points or draw benefits. If this threshold is much higher than your normal expenditure, it does not add value to spend more to earn the points.

Redeemable benefits of the points.
Customers redeem their points by way of transfers on annual fees on many occasions, and avail discounts in partner outlets. It is beneficial to redeem your points in a way that is more beneficial, for example, if you are a frequent traveller, redeeming your points for discounts on hotels rooms would help cut other costs.

Credit card reward points should be a secondary basis for decisions on expenditure, helping one derive the benefits only after meeting primary goals. These pointers would help one enjoy the most of the reward points.
Four Important Answers on How to Choose the Right Flat Size

The size of the flat to buy is an important criterion for home buyers. An analysis of our lifestyle, social status, and financial ability gives good leads on the size of the flat before making a purchase decision. Here are four answers to questions related to determining the size of a flat before making a purchase.

Number of bedrooms
Most people follow a rule of thumb: one bedroom per occupant. That said, couples and children can share a roomm. The number of families that will be sharing a flat also influence the size and number of bedrooms a flat should have.

Size of living room
The intended use of a flat, the size of the living room, the furniture size and type are also important determinants of the purchase decision. For example, a flat intended for use to host meetings and social events will require more elaborate furnishings, which need more space, unlike a flat that is used for residential purposes.

Future plans
Our future plans, especially regarding the number of children to have also determine decisions on the size of flat. Those intending to have more children go for more bedrooms in a flat, unlike those intending to have fewer children.

Financial ability
The amount that one can commit towards purchasing a flat should be based primarily on one's financial ability and not enticements from financing companies. Larger flats usually cost more and the maintenance costs are also higher.

Preference to Auxiliary Facilities
Today, more people prefer to have study rooms and gyms among other auxiliary facilities within their flats. These preferences affect the size and cost of the flat, particularly the number of available convertible rooms.

The flat one picks to buy should be comfortable enough to meet the current needs, while giving you room to expand in the future. These answers provide a good guide on how to choose the right size of the flat. 

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