Tag Archives: Credit Card Hack

Despite RBI moratorium, pay your full credit card bill

Credit Card bill interest calculation

RBI as part of Covid-19 regulatory package announced a moratorium of 3 months on all term loans, including credit card bills falling due between 1st March and 31st May. Many misinterpretations are floating around this announcement; however, I say that pay your credit card bill in full despite RBI’s moratorium.

What makes me believe that paying the credit card bill in full is a wise thing to do? Read further to understand it.

Pay house rent via credit cards- RedGiraffe vs NoBroker

Nowadays one can swipe credit cards for literally everything. However, are you aware that one can pay house rent via credit cards too? Well, there are multiple options available that allows one to make house rent payment via credit cards.

Benefits of paying house rent via credit cards

  • The obvious benefit of using credit cards for house rent payment is reward points. Let’s just assume that the credit card gives 1.5% reward rate and rent payment is 25,000/month. Thus the net reward earned would ~1% on the rent paid (adjusting for charges of service providers), which would be worth 3,000 (25000*12*1%) in one year. In case someone pays higher rent, the value would be higher.
  • Further, not to forget the credit-free period. Assuming saving account interest rate of 4%,  for an average 30 days credit-free period, one earns an extra 0.3% interest.
  • Higher annual spending on credit card helps one to achieve annual spending limit to get an annual fee waiver or additional benefits (as in the case of HDFC’s Dinersclub cards or Amex Platinum Travel Card)
  • Another aspect is that this helps in improving one’s credit score. Higher monthly bills and regular payments are seen positively by credit bureaus.

Deal Stacking – Get minimum 10% savings on every spend

Deal stacking/offer stacking/ reward stacking is simply combining multiple offers/coupons or reward points to maximize savings on one’s spend. I believe that despite seemingly tedious at first and low savings, say like ~2%; deal stacking offers combined savings of 10%+, which is a pretty good rate of savings if done on a consistent basis.

General avenues of reward stacking

  • Credit Card reward points
  • Wallet cashback/discount
  • Cashback/discount/ loyalty rewards from respective website/company
  • Reward points on Jet Privilege/ Payback
  • Reward points from Cred (Will be writing a review on Cred App soon)

My experience is with some attention to detail, one can easily achieve 3-4 level stacking for ~10% savings, but beyond that I am yet to figure out a way for consistent stacking. Below are my personal examples where I have achieved both 3-5 level stacking along with calculations.