You might be thinking I am out of mind or may be I am writing a promotional post, I am not :). If you are really smart, you can earn Rs. 37,500 extra per year besides the transaction reward points, read on to know more.
It is true. You can make money swiping your credit card.
Being financially literate is not equivalent to penny pinching, it is about maximizing your returns on your investment, making informed money decision and protection from financial pitfalls. Without knowing the basics, even investing in mutual funds through SIP and buying term insurance can prove to be risky.
Similarly, while credit card is often projected as a wealth destroyer, it is not so for an informed credit card user. It is about knowing how to maximising the benefits and staying away from greed and impulsive purchases. I am using credit cards for past 10 years and learnt the benefits and drawbacks with experience.
While I have used AXIS Bank and YES Bank credit cards and earned loyalty points, I find American Express to be more useful. American Express gives an impression of card for rich and affluent and have high yearly charges. While the information is not all wrong, but we should look at the benefits it provides, and how one can easily earn hard cash making an optimum usage of this card ruther than succumbing to its pitfalls.
I would like to share with you the experience with American Express Rewards card which I am using for last 3 years. I have once managed a Rs. 7500/- statement credit, second time Rs. 3000/- (reduction in credit card bill) and consecutive 2 times waiving off Rs. 4500 fee. In the third year renewal, I am on my way to waiving fee addition to the reward points I will be earning this year.
– American Express SmartEarn™ Credit Card – yearly fee waiver with Rs. 40,000 transaction
– American Express Membership rewards credit card – 1000 Reward points on 4 swipes of Rs. 1000/- each a month. 1 reward point on every Rs. 50 transaction.
Loyalty points earn you hard cash and big vouchers
As a giveway, in the last section of this I have shared the link of online application which will help you of waving 1st year charge as well as earning bonus points on joining online as well. (That is equivalent to 6000 bonus points or Rs. 1500 benefit.)
To know all the interesting benefits in detail, do read the blog till end
I use the card extensively for buying grocery, gold, life insurance, health insurance premium, online transactions, zomato, swiggy, paying fee almost everywhere I can.
Features of American Express Membership Rewards card which I am using for past 3 years and delighted with the experience –
– The American Express Membership Rewards card – earns you 1000 bonus point each month on swiping four times of Rs. 1000 each. 1000 bonus points is equivalent to Rs. 250/- statement credit
– Apart from the 1000 bonus points on 4 swipes of Rs. 1000, you will earn 1 bonus point for each Rs. 50 transaction.
– The yearly fee of Rs. 4500/- is waived on making transaction of Rs. 150,000/- a year. (effective transaction of Rs. 12,500 per month). One can easily earn cash over 14000 points with Rs. 150,000 transaction and waiver of yearly charges.
5 Hidden Benefits of AMEX Cards in India – Loyalty program
- You won’t be earning on – insurance premium, cash transaction, fuel and utility – electricity, gas, phone bills, etc. However, this will be considered for waiving off your fee. For example if you are buying grocery, furniture, books etc of Rs. 1,00,000 and Rs. 50,000 if you have spent towards your insurance premium, your yearly fee will be waived off.
- You can earn bonus points on each successful card approval.
- You can earn 12000 points for each card approval, upto 150,000 points each year (Rs. 37,500 cash benefits) this is over and above the points you accumulate through transaction
- The bonus points can be redeemed as cash, waived off as cash benfits
- You can use credit card also for investments and insurance purpose like purchasing gold, EMI for Tanishq Golden Harvest scheme, life insurance premium, health insurance premium, soo credit card is not equal to expense
Potential savings and earning with the card for smart users–
24 carat and 18 carat offers on 24000 points and 18000 points respectively
24000 points is equal to – Rs. 10,000 waiver on credit card bill
– or Rs. 11000 domestic flight vouchers if bought from American express website – https://www.amexindiatravel.com/flights
For 18000 bonus points, One can earn Rs. 7500/- credit card statement waiver
If one spends Rs. 1,50,000 on the credit card, Rs. 12,500 a month with smart four swipes off Rs.1000, the person can earn about ( 12000 bonus points + 2050 points = 14050 points = Rs. 3512 )
Fuel partner – HP petrol pump won’t charge you any convenience fee upto 25,000 in a day, other petrol pump could charge you 1.8% – 2.8%
Credit card is not for you –
f you can’t control your expenses with cash or debit cards, chances are high you will spend more with a credit card. Credit card is a tool for financially disciplined people. If you still want to try, you can put a limit to your per transaction amount. Incase you are thinking of withdrawing money with credit card, it seem easy, but you will end up paying double the amount you took , it will charge you hoping 40% a year, which is nothing but the worst trap one can fall in. Don’t carry your credit cards while going for a hearty drinking sessions. If you are spend thrift, keep it locked in a drawer, only use for emergency and planned expenses – You may consider not using it all together
You can consider EMI on transactions if you have made or planning an critical purchase of a large sum, for that I recommend calling up the customer care at 18004190167, with your card details handy. They will guide you and help take an informed decision.
You can add Upto 2 Supplementary Cards (for family members) at no extra cost; with no extra yearly charges, the rewards points however will be clubbed with your reward points.
Cash withdrawal interest charges – 3.5% and 3.99% on default (never withdraw cash on American express cards)
Transaction Fee of 3.5% of the cash advance amount, subject to a minimum of Rs. 250 is levied every time a card member withdraws cash on his Card.
Cash Withdrawal limit (Stay away) – Rs. 10,000 every 14 days and 20% of credit limit.
How to apply – Click on American Express Card referral link to check cards and find the best suitable card. Please also check American Express SmartEarn™ Credit Card for equally good offer but lower costs and lower rewards points.
Keep the following documents handy –
– Keep your PAN Card scan copy
– Keep your Address proof – Aadhaar card scan copy
– Income tax return scan copy
– Scan of your photograph
– Last Income tax return/ Form 16
If you complete the form filling online with this link, you will be eligible for 2000 bonus points and waiver of first year fee of Rs. 1000/- Everything needs to be completed online to get the bonus points.
American Express indeed gives a rich feel without burning any hole in your pocket.
Other popular credit cards are from SBI, HDFC, Federal Bank. You may check them too.
THIS POST IS WRITTEN BASED ON EXPERIENCE OF USING IT FOR LAST 3 YEARS, TAKING FEEDBACK FROM THE CALL CENTER FOR VALIDATING EACH POINT.
No tool is vice if you use it for the right purpose, including knife and credit cards.
My gift to you : I personally use The American Express Membership Rewards – Gold – American Express Card referral link. This link will give you 2000 bonus points on spend INR 5,000 in the first 90 days of Card membership + Zero annual fees for the first year (Worth Rs. 1000, fee for first year).