Selecting the best credit card might be daunting because there are so many options available. Especially considering how many tempting welcome prizes are being provided everywhere you look.
Even if welcome bonuses are tempting, you shouldn’t base your credit card decision only on them. This is due to the fact that while initial welcome incentives may provide a welcome boost, regular, wise use of your credit card is necessary to fully realize its potential. This implies that you will need to select your credit cards carefully, and using a credit card strategy is the best way to achieve this.
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Why a credit card strategy is necessary?
As you can see, rewards offered by some of the best credit cards are fantastic, but you can only accrue them through usage. You won’t get anything if you don’t use your card, regardless of how many points or how much cashback it offers.
Additionally, since the majority of credit cards have an annual fee, you should accrue enough credit card points to cover it; if not, your credit card is truly costing you money. Yes, you can request a waiver of your annual fee, but it’s not always successful. Various banks also have varying policies about these kinds of requests.
As you can see, to fully utilize credit cards, you do need to be somewhat organized and aware of their intricacy. Using a credit card plan can help with that.
Putting together your credit card plan
You can formulate your credit card plan by posing a few fundamental queries to yourself.
What kind of awards are you looking for?
The most important thing to consider when selecting a credit card strategy is how you hope to benefit from the value of your credit cards. Do you want to reduce the amount you send at the end of the month or the year by saving as you go? Alternatively, would you rather accrue credits or air miles that you can utilize to offset expenses or redeem items, saving money?
The answer will help you decide between rewards credit cards, cashback, and air miles.
What is your monthly spending average?
Many credit cards have a minimum amount that you must spend each month to be eligible for rewards. This can be anything from a few thousand dollars to several hundred dollars per month.
These cards are probably not for you if you don’t regularly spend a lot if your monthly spending varies to the point where you spend less than the minimum in certain months, or if you just don’t enjoy the concept of having another goal to accomplish.
What expenses do you typically make?
Certain credit cards like DBS provide greater rewards for particular kinds of transactions. Some offer incentives on every transaction, albeit at a reduced rate. As a result, another important component of your credit card strategy is centred around your typical spending habits.
For instance, DBS offers different credit cards for particular kinds of transactions such as
- DBS Takashimaya Visa Card
- DBS Vantage Visa Infinite Card
- DBS Live Fresh Student Card
- SAFRA DBS Mastercard Card
- DBS Live Fresh Card
- DBS Woman’s World Mastercard Card
Finally, there is no such thing as an objectively optimal credit card strategy; the best credit card strategy is the one that suits you the best.
All that matters are your goals, preferences, and budget all of which are particular to you and evolve. For instance, you might have been an extreme travel enthusiast in your younger years, but after you settle down and have your first child, you discover that you care more about reasonably priced groceries.
In the end, selecting the finest credit cards is essentially a matter of personal preference and does not follow any set formula. Your credit card approach shouldn’t be causing you anxiety because credit cards are designed to make our lives a little bit easier and more fun. Simply follow your instincts, even if it involves utilizing a single credit card for all transactions.
Apart from that, if you are interested to know about “Advantages and Disadvantages of Credit Card Cashing” then visit our “Business” category.
