Let’s face it: owning a credit card entails a large degree of financial responsibility.
When you let your credit card bills pile up uncontrollably, you can enter a vicious cycle of debt that’s hard to escape.
However, if you can keep your debt under control, you can benefit from it in various ways, one of which being eligibility for its special rewards program.
Credit card holders can take advantage of several exclusive rewards—whether it’s through points, miles, or cash back—with the right card.
There are many ways individuals can capitalize on these rewards. They can easily score a luxury vacation for a steal, for instance, thanks to these rewards programmes.
For homebodies, you’re not out of luck! Prospective homeowners or renovators can use these reward programs to secure some home decor furniture for a steal.
If you’ve had a good credit history and are looking for ways to save on cash while upgrading your home, read this article for tips on how to maximise your home decor budget using your credit card.
1. Choose The Right Credit Card
Credit cards offer more than just their monthly credit balance. They can also come with rewards and features that can give you a leg up in realising your home improvement objectives.
For instance, some credit cards offer time-limited cashback opportunities as high as 5% for eligible purchases. These credit cards may also come with zero annual fees, minimal foreign transaction fees, and generous welcome bonuses.
It’s imperative to shop around and look for the right credit card that pairs well with your purchasing behaviour.
For instance, one credit card may be best suited for those who want to accumulate points (useful if there’s a home appliance in the rewards catalogue you’re eyeing to buy), while another credit card may be better for superior cashback value.
Identify what credit card fits your purchasing behaviour best, then select it accordingly. This way, you’ll make the most out of your card relative to your own objectives.
This article from Westpac can help you gain a more comprehensive understanding of accumulating points.
2. Pay Using the Credit Card
While swiping your credit card impulsively may seem like a bad financial move (and it definitely can be), using these credit cards often may also be rewarding to its users. These rewards come in the form of accumulated points, but that’s not all there is to it.
Some credit cards, for instance, give you rewards for maximising your spending in certain categories. For instance, one credit card could grant you as much as $75 cashback for maximising your spending in certain, popular home decor retailers nationwide.
Other credit cards allow you to redeem certain products in exchange for points. This can help you obtain nice furniture at virtually no cost on your part.
If the home decor items are on sale on top of that, this could mean hundreds of dollars in savings for you—which can be a big help for the budget-strapped homeowner.
Furthermore, regularly using your credit card can help you build a solid credit history. This can help increase your credit score, which can further help increase your chances of approval for credit cards that have more optimal offerings with better home decor deals.
There are multiple other pros of using a credit card, such as promotional deals and fraud protection, which can give you peace of mind in securing your home decor products.
3. Take Advantage of Time-Sensitive Offers
Another potent way to maximise your credit card rewards is by constantly observing and taking advantage of time-limited offers. Some credit card companies may partner with retailers for a limited time for a certain set of products.
If any of these products catch your attention, you can consider redeeming your points and securing the reward for yourself. This helps you save money on things that you otherwise would’ve spent money on.
That said, it might be difficult to stay in the loop for promotions offered by your credit card issuer. You may opt-in to your issuer’s newsletter so that you’ll know when certain deals are going on.
Furthermore, you can also prepare for special redemption periods that will happen at set times a year—like Christmas and Black Friday. This is usually the time when big sales go on, so do prepare to approach that time with at least some points accumulated.
These offers aren’t exclusively redeemable events. Some events could include special financing periods or point multiplier events. Feel free to take advantage of these offers as well.
4. Utilise Your Welcome Bonus
Before you dive into the point-accumulation grind, get acquainted with your welcome bonus first! Almost all credit card providers have a generous welcome bonus that will offer you a substantial number of points or even tangible rewards like a gift card.
Credit card welcome points can reach as high as 50,000 points, which can secure you some great deals from the start.
Furthermore, the welcome bonus may also include a time-sensitive period wherein you can accumulate more points in a short amount of time—thus making it easier for you to achieve your home improvement dreams.
5. Avoid Bad Credit Card Habits
Credit cards are a great tool, especially when you make timely repayments. However, if you delay your payments, you can spiral into a cycle of debt, which can cause a domino effect of bad outcomes.
For instance, one common bad habit credit card holders may succumb to is late repayments. Not only does this habit cause you to accrue high interest and late fees, but it can also tarnish your credit score in the long run. This can negate the benefits of the credit card rewards.
If you want to maintain a good credit standing, there are a couple of ways you can do it. There are no shortcuts. You’ll have to hit the monthly target on full payments, uphold a decent credit utilisation ratio, and avoid opening too many lines of credit in a short time.
By upholding sound credit card habits, you can ensure that your finances stay intact throughout your budgeting journey.
