I was reading an article where a guy have bought a 14 lakh Car with Credit Card and got around 6% back as points. Even though he have to pay 1.5% because of convenience charges but he have used the card which actually gave him more than 8 to 9% returns. So he have used Amex Platinum Travel for the first 4 lakhs. Now Amaz Platinum Travel Card is a milestone card which is actually gives the best value when you used 4 lakh only.
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Since it's a milestone card, when you spend 4 lakh you get returns upto 9%. Now even if you remove 1.5% from it, you will eventually get around 7.5% back as points. Now these points can be redeemed for best value when you go for trips and ise Mariot hotel for your stay. Now the next card he has used as the Amex Gold Card and Amex MRCC and used its maximum benefit and the remaining amount he has spend from Axis Atlas.
Now he gave us the calculation that after 1.5% removal, he got around 5.5% back. Now think about it you spend 14 Lakhs and got around Rs 77K back which is again a great returns when used the best card. Now if I remove around 17K Credit Card annual charges, then also you have Rs 60K back which turns out to be 4.2% returns. Now think about it, you bought a car and get 4.2% then it's actually a great deal.
I feel Credit card should be used for getting the maximum benefit and purchases like these actually gives you the maximum benefit. And don't forget that if he uses teh card for the whole year he will get 8% back because I have removed the annual charges also. And that's why having Credit card is actually really good because you get the maximum benefit from it.
