Credit card rewards can be quite confusing. Credit cards make transactions hassle-free along with lots of exciting deals and credit card rewards such as redeemable points, credit card cashback, credit card Airmiles, etc. And it’s a fact that the pattern of your frequent expenses determines how efficiently you’re utilizing your credit cards. Then let’s have a look at which credit card reward is going to be beneficial for you.
Here are some points you need to know about credit card rewards:
9 Credit Card Reward FAQs we covered:
- Is it better to get cashback or airline miles?
- Is it better to redeem points for cash?
- How much worthy is having a rewards credit card?
- Which credit card has the best cashback rewards?
- What happens when you redeem cash rewards?
- Do cash rewards expire?
- What credit card gives you the most rewards?
- How can I maximize my credit card points?
- Are points better than cashback?
1. Redeemable Points:
The credit card rewards points are redeemable, which makes this type of credit card useful for people who shop a lot. Ranging from utilities to luxurious products, users can redeem these points for dining out, shopping essentials, apparel, electronics, traveling, etc. Sometimes, the credit card providers can convert the redeemable reward points into Airmiles against a minimum fee to help the user travel comfortably.
Card Suggestion- American Express Gold Credit Card
Being a premium credit card provider, American Express always design a reward program best for day to day usages like shopping. And that’s why the American Express Gold Credit Card has a lot of beneficial features to be one of the best rewards credit cards.
- With every spend of Rs. 50 on a vast range of categories excluding fuel, utility, insurance, and cash transactions, users can earn 1 Membership Reward Point.
- Users can earn 10X Membership Rewards Points by purchasing products from Flipkart or booking cabs from Ola.
- Shopping from various renowned brands such as Amazon, Big Bazaar, UBER, BookMyShow can get you 5X reward points.
- Users can easily pay for their big purchases in EMIs @ 12% interest per annum.
- If a user spends Rs. 10,000 using the credit card within 90 days of the card membership, then the user can get Rs. 500 cashback as a welcome gift.
- By spending Rs. 39,999 p.a. on selected categories, users can waive the annual fee of the card which is Rs. 495 excluding applicable taxes.
2. Credit Card Cashback:
Apart from credit card rewards points, credit card cashback also attracts customers to use credit cards more often. Unlike the credit card rewards redeemable points, credit card cashback is provided for the expenses made using the cards. So, a user can evidently save money on their expenses. Then the user can use the accumulated cashback amount anytime.
Card Suggestion- Citi Cash Back Credit Card
People who want to earn credit card cashback can find Citi Cash Back Credit Card suitable for them for the following features.
- Purchase movie tickets and get 5% credit card cashback on the purchase.
- Pay telephone and utility bills using the ‘Citibank Online Bill Pay’ method and get 5% credit card cashback which can go up to Rs. 100.
- Get up to 15% discount on dining bills of selected restaurants.
- Users can get 5% credit card cashback on any other expenses.
- The annual fee of this card is only Rs. 500.
3. Credit Card Airmiles:
Various credit card providers reward their credit card users with credit card miles that the users can use for booking air tickets. Credit card Airmiles providers can either issue independent credit cards or co-branded credit cards. An independent credit card allows the user to redeem the credit card Airmiles at any of their partner Airlines. On the contrary, a co-branded credit card only allows redeeming the Airmiles at the associated Airlines. Usually, credit card Airmiles come with validity. So, such cards are useful for users who travel frequently by air. Besides, these cards also provide allowances for extra luggage, lounge access, etc., and some of the providers also offer complimentary flight tickets annually.
Card Suggestion- Citi Premier Miles Credit Card
Frequent travelers can find the Citi PremierMile Credit Card suitable for the following features.
- Spend Rs. 100 on airline transactions and earn 10 PremierMiles.
- Spend Rs. 100 on other things and earn 4 PremierMiles.
- You can spend at least Rs. 1,000 at once within the first 60 days of card membership to earn 10,000 PremierMiles.
- The annual fee is Rs. 3,000 and the card user gets 3,000 PrimierMiles as credit card Airmiles.
- Users can redeem the credit card Airmiles at any of the fourteen selected airlines such as Jet Airways, Air India, Qatar Airways, British Airways, etc.
- If the user wants, then the card provider can convert the credit card airmiles into Taj Inner Circle Points to use in Taj Hotels.
4. The All-Rounder Credit Card
It can be difficult to choose the appropriate credit card rewards program for people who don’t have any particular spending pattern. So, such users can select a credit card that can provide users with all kinds of incentives. These types of versatile credit cards offer convertible reward points that users can convert into cashback or Airmiles. So they can use the reward points according to their needs. These cards usually don’t charge for conversion of the points, but the cashback can be only used for paying outstanding expenses.
Card Suggestion- IndusInd Bank Platinum Select Credit Card
The IndusInd Bank Platinum Select Credit Card can be useful for the users who frequently go shopping, dining out, pay utility bills or travel.
- Spend Rs. 150 and earn 1 reward point.
- The conversion of reward points into cash will provide the user with Rs. 0.75 for each point.
- After accumulating 500 reward points, a user can convert the points into Jet Privilege Airmiles and get 100 Airmiles for every 100 points.
- Use EazyDiner to book your favorite restaurant.
- Get Priority Pass membership by using the card.
- Book a movie ticket using this card and get one ticket for free.
- The IndusInd Bank Platinum Select Credit Card also empowers its users with concierge services that help users in flight bookings, hotel reservations, etc.
To apply credit cards online, visit our credit card page.
Frequently Asked Questions
Here are the answers to some frequently asked questions regarding the credit card rewards program.
1. Is it better to get cashback or airline miles?
The benefits depend on the pattern of frequent expenditure and the intentions of the credit card users. Opting for the credit card Airmiles can be beneficial for the users who travel by air a lot as that can help to save on flight booking and provide with extra baggage allowance, premiere lounge access, etc. On the contrary, credit card cashback can be beneficial for the users who want to save money on their frequent expenses such as shopping, dining out, booking movie tickets, paying utility bills, etc.
2. Is it a good decision to redeem points for cash?
Credit card rewards points come with an expiry date. If the expiry date is around the corner, then redemption of the points for cash can be beneficial as that will help to save the amount and use it to pay any outstanding amount.
3. How much worthy is having a rewards credit card?
It is worthy of having a rewards credit card if you shop quite often. Rewards credit cards reward you with redeemable points for shopping for essential and luxury products and allow you to redeem those points while paying next shopping bills, restaurant bills, traveling, etc.
4. Which credit card has the best cashback rewards?
There are multiple credit cards available in the market which provide cashback rewards. Among those cards, people can find the Citi Cash Back Credit Card suitable for the credit rewards they want. This card provides handsome credit card rewards along with EMI and loan benefits.
5. What happens when you redeem cash rewards?
When you redeem your cash rewards, you can pay your credit card dues with that amount. However, that can reduce your accumulated cashback. Most of the time the redemption doesn’t charge any fees but check for such a fee before the redemption as a fee higher than the cash rewards can be heavy on your pocket.
6. Do cash rewards expire?
Yes, cash rewards can expire within a limited period. So always check your credit card program and be sure about the validity of the cash rewards.
7. What credit card gives you the most rewards?
The annual fees, interest rates, and spending patterns of the users will decide the best credit to give them the most rewards. However, one can find American Express Gold Credit Card useful as that offers handsome Membership Reward points on shopping, cab booking, cashback, fee waiver, etc.
8. How to maximize my credit card points?
To maximize the credit card points one should know his or her credit cards to use the card effectively. Use the card for frequent purchases and payments to get benefits such as reward points, bonus points, cashback, Airmiles, etc. Don’t opt for such offers that can charge higher interest on the amounts. Understand the milestones that offer fee waivers, bonus rewards, etc. by spending a certain amount annually. That can reduce your overall credit card burden.
9. Are points better than cashback?
Whether is a reward point or a cashback, both come with an expiry date. Some can desire to earn redeemable points to use in further purchases and bill payments. Whereas some may want to save money on their frequent expenses. So, it will be better to track the pattern of expenses that you frequently do.
Multiple credit card providers are out there to offer you credit cards to make your life easy. But the decision is up to you as that will decide how efficiently the card can smoothen your day to day financial transactions and increases the benefits. So, feel free to visit our website to do thorough research about the suitable credit card program for you. You can also comment or email us with any query regarding this matter.