People usually go for credit cards and spend according to it's reward structure and usually pay more to get the rewards as provided by the Credit Cards. But it should not how you should use Credit Card. Credit Card should be taken as per your spends and then utilize it to the fullest.
For example, for my spend I have taken 4 Credit Cards and then use it to the fullest to take best advantage of those. For example, I spend around 10K Rs per month using the UPI. Now to take the full advantage of those UPI payments, I started using the Tata Neu App which gives me around 1.5% cashback for all my UPI transactions. So if I spend Rs 10K every month, then I will get Rs 150 back which is actually a very good to be honest. Because I am getting some thing back.
Next is Petrol, usually when we spend in Petrol through Credit Card we have to pay some amount extra usually 2 to 3% of the total amount. Now using the good petrol credit card, I can get 5.5% back that means I will get minimum 2% back since I have to spend 3% for the transactions charges. So actually a good thing to get something back.
Now these are the just 2 ways I talked about where I have the credit card as per my spending. I could have taken a very good credit card, with amazing rewards but at the same time I have to spend that much money to get those rewards points. So that's not how I want to have my financial to look like.
And when I see young people to get into that cycle of defaulting or getting into credit card debt, I feel like it's good to have less rewards than getting into that debt.
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