Credit cards can be more than just tools for convenience — they can unlock incredible rewards when used strategically! Here’s a breakdown of the different types of credit card rewards and how you can maximize their potential.
How to Earn Rewards with a Credit Card
- The rewards you earn largely depend on the type of credit card you choose and how you spend.
- To get the most value, select a card that matches your spending habits and compare offers to ensure maximum benefits.
Types of Credit Card Rewards
1. Cashback
- Earn a percentage (1-5% or more) on eligible spends.
- Popular for categories like groceries, dining, and online shopping.
2. Advantages:
- Easy to use — cashback can be applied to your card bill or spent directly.
- Great for reducing everyday expenses.
3. Reward Points
- Earn a set number of points for every spend (e.g., 1-2.5 points for every ₹100-₹150).
- Redeem for merchandise, gift cards, travel, and more.
4. Advantages:
- Flexible redemption options.
- Bonus points during promotional periods or special categories.
Which Credit Card Rewards Best Suit You?
- Analyse Your Spending: Identify where you spend the most — travel, dining, or shopping — and choose a card that rewards you in those categories.
- Reward Preferences: Do you prefer straightforward cashback or enjoy redeeming points for travel and products?
- Evaluate Card Terms: Compare annual fees and charges with the rewards offered. Some premium cards come with higher fees but offer more lucrative rewards.
- User Experience: Look for cards with user-friendly apps, smooth reward redemption, and strong customer support.
Maximize your spending power with the right credit card rewards!