How to improve the return % on credit cards?

[knight]

Back here. After this month's statement got generated, I am feeling bad again.
The return % is roughly 3% max.
It is somewhat less I think. It is mainly because of the cards I hold.
That too after spending around 1.6L.

I am not explicitly writing down each card's bill amount, cashback received etc.
I mainly used Amazon pay ICICI, Swiggy HDFC, and Tata Neu Infinity HDFC.
Overall, I feel it could have been better. Am I wrong in expecting higher rewards or returns?

Without buying Amazon pay and other vouchers (without entering the voucher game), and without travel and hotel spends, is it not possible to get a better reward?
My spends are not voucher based and hence I find it difficult to go that way.

Apart from that, when people posting free hotel stays and business class flights, I feel I am missing something.
Other than that, for normal offline card swipes and some bit of online spends, is this the best we can achieve?

Any hacks, tips or tricks?

Hitting good returns with offline spends is usually not feasible.

If any of the offline insurance swipes can be shifted online, Tneu app or Apay Voucher would be your friend.

If you can't shift the expenses online, 1-2% return is what we usually get.


If you're open to applying new cards:
Milestone Oriented Cards:
You can check some cards with Milestones, to try for a better return %.
Like Regalia Gold, Amex, DCB.

Cards with High Base returns:
If monthly 1.6L is sustainable, you can try getting better cards like DCB/Infinia etc that give 3.3% on offline spends (assuming you meet the fee waiver criteria).
Although, since you haven't mentioned any core HDFC cards, upgrading to these seems difficult.
You can check other cards like Axis Atlas, other members can suggest cards if you're open to getting into Miles instead of Cashback.

This would increase your overall return by ~2%. (or more if you can utilize smartbuy/grabdeals)


You may also check if AU LIT has any add-on feature for offline insurance.


Lastly, don't get carried away with people tweeting about luxury vacations using points, most of the points are through online spends on accelerated categories like smartbuy.
Also, many are from manufactured spends and loopholes (which sometimes backfire).
Accumulating those many points with offline spends is not that feasible.

 

[cardio_guycardio_guy is verified member.]

Lastly, don't get carried away with people tweeting about luxury vacations using points, most of the points are through online spends on accelerated categories like smartbuy.
Also, many are from manufactured spends and loopholes (which sometimes backfire).
Accumulating those many points with offline spends is not that feasible.

Thanks bro. This is another aspect I was also thinking. For a normal spender, who doesn't travel much and doesn't stay in hotels, all these hotel and flight redemptions looks like a fairy tale. Also because I am not 'really into it', I find it difficult to take the plunge. For me, Tata Neu Infinity is the airmiles and hotels card 😀 because I can use all those 1000-2000 neu coins to redeem while booking Air india express flights. And they have Ginger hotel chain which is like low-cost ones (like Ibis in Accor) for hotel stays. There also I can redeem neu coins.

In short I had also thought about these 2 options - moving to milestone cards, or high base reward cards. I am parking both for the time being. But if something comes on my way, I will go for it. Not exactly trying hard to get them.
So far I think I will stop searching to get the best returns, but. just continue with what I have and optimize spends on existing card.
Thanks for your inputs.

 

[cardio_guycardio_guy is verified member.]

I also prefer cashback cards and I use this strategy for my spends to maximize the effective return. I am sharing my complete strategy so that you can pick up whatever points you find relevant as per your need.

Thanks bro. I am also moving towards optimizing my spends with cards that give best returns on each category. But like helloworld told above, we cannot always do it 100% of the times. I'll list some of my spends:

Utility: I use Tata Neu Infinity for paying all bills (since last 2 months) 5% is good there.
Grocery: Again I buy from bigbasket, using TNI. (I think 5% for card +5% for app) Though not all spends, but whatever possible.
Medicines: I buy offline from Apollo pharmacy (there is a shop nearby). I use Neu Infinity UPI scan + due to the Circle membership I get some additional discounts.
Zomato / Swiggy Food Orders: Very rare, but use Swiggy HDFC card for Swiggy.
Insurance: Tata Neu Infinity on Neu app. 5% is good.
UPI: TNI using Neu app. 1.5%
SBI VDC: Same, Unipay using SBI VDC.

Exception 1 (ICICI Sapphiro): Bookmyshow B1G1 (upto Rs 1000 in a month). But we rarely go for movies (like once in 2-3 months)
Exception 2 (Indusind Tiger, Federal Celesta): Lounge access without spend criteria.

All cards are LTF, as of now this is where I stand.

 

[sourpai]

Your returns are fine with cards you hold.

Higher returns are only possible for higher spends, which are primarily online and with super premium cards with fees, which get waived off with higher spends

Ideal spends sweet spot for maximising returns is in the range of 20L + annum, without too much spend on excluded categories such as insurance / rent / EMI etc. Education spends also gives good returns. With these type of spends, you can get super premium cards and get the fees waived off also

 

[SatyG]

Thanks bro. I am also moving towards optimizing my spends with cards that give best returns on each category. But like helloworld told above, we cannot always do it 100% of the times. I'll list some of my spends:

Utility: I use Tata Neu Infinity for paying all bills (since last 2 months) 5% is good there.
Grocery: Again I buy from bigbasket, using TNI. (I think 5% for card +5% for app) Though not all spends, but whatever possible.
Medicines: I buy offline from Apollo pharmacy (there is a shop nearby). I use Neu Infinity UPI scan + due to the Circle membership I get some additional discounts.
Zomato / Swiggy Food Orders: Very rare, but use Swiggy HDFC card for Swiggy.
Insurance: Tata Neu Infinity on Neu app. 5% is good.
UPI: TNI using Neu app. 1.5%
SBI VDC: Same, Unipay using SBI VDC.

Exception 1 (ICICI Sapphiro): Bookmyshow B1G1 (upto Rs 1000 in a month). But we rarely go for movies (like once in 2-3 months)
Exception 2 (Indusind Tiger, Federal Celesta): Lounge access without spend criteria.

All cards are LTF, as of now this is where I stand.

TNI is a game changer when it comes to these expenses that you mentioned. The only issue is the redemption of neucoins, especially for those who don't use BigBasket. I am accumulating the points to spend at Tanishq for gold coins 🙂

 

[cardio_guycardio_guy is verified member.]

TNI is a game changer when it comes to these expenses that you mentioned. The only issue is the redemption of neucoins, especially for those who don't use BigBasket. I am accumulating the points to spend at Tanishq for gold coins 🙂

I just got upgraded from Elite to Legend tier in Neu app. Got 1000 extra neu coins as a part of their ongoing offer.

 

[hender]

I just got upgraded from Elite to Legend tier in Neu app. Got 1000 extra neu coins as a part of their ongoing offer.

Legend 🌠 both in TF.. Neu..