A writer has revealed how he uses 21 credit cards to save approximately Rs 55,000 every year. By strategically leveraging rewards, cashback, and other benefits, he maximizes his savings without overspending.
The Strategy Behind the Cards
The writer, who prefers to remain anonymous, shared his approach with ToI Plus. He explained that each card serves a specific purpose, such as earning cashback on groceries, fuel, or online shopping. By using the right card for each expense, he accumulates points and discounts that add up over time.
Key Benefits
- Cashback: Some cards offer up to 5% cashback on certain categories like dining or groceries.
- Reward Points: Points can be redeemed for flight tickets, hotel stays, or gift vouchers.
- Fuel Surcharge Waivers: Several cards waive the fuel surcharge, saving money at the pump.
- Annual Fee Waivers: Many cards waive annual fees if a minimum spending threshold is met.
- Zero Liability Fraud Protection: Cards provide security against unauthorized transactions.
Managing Multiple Cards
To keep track of due dates and payments, the writer uses a spreadsheet and sets up automatic payments. He recommends paying off the full balance each month to avoid interest charges, which can negate any savings.
Tips for Others
- Choose cards that align with your spending habits.
- Keep track of annual fees and ensure you get value from each card.
- Use cards for planned expenses, not impulse buys.
- Set up reminders for payment due dates.
The writer emphasizes that this strategy requires discipline. He advises against applying for cards solely for the sign-up bonus if you cannot manage the spending requirements. With careful planning, multiple credit cards can be a tool for significant annual savings.
