What Types of Credit Card Rewards Can You Earn?
Some credit cards charge you only for using their product. Some others, however, give incentives for the amount of money you spend with the card. Credit cards rewards come in different forms, but their shared attribute it that they all give you a benefit for using your card more. When it comes to credit cards and the offerings and conveniences they promise, there are many benefits which encourages people to pick a card that lets you earn the types of rewards that satisfy your needs and lifestyle.
Before you apply for the credit card, it is important to know that rewards generally can be divided into three categories- cash, points, or miles. Needless to say, cash rewards are the most direct and easiest to use. However, note that they do not always pay you in cash; some programs allow you to only redeem your cash rewards as a credit to your account. Others will send a cheque or make a deposit into your bank account when you intend to redeem your reward. In certain cases, you may be able to redeem your cash rewards for gift cards with your card issuer’s merchant partners.
Points are given on the basis of each buck you spend. These can typically be redeemed for merchandise in the reward program’s online shopping mall. Your card issuer may also allow you to redeem your points for gift cards, cash, or even travel. With Bajaj Finserv RBL Bank SuperCard, you can enjoy a number of industry-first features which will enrich your experience of using a credit card.
Miles or travel rewards cards reward credit card users with miles hat can be redeemed for airline tickets. The number of miles one can earn varies according to the credit card, and the number of miles you need to purchase a flight will also depend on the frequent flier program. Do keep in mind that even if you are able to convert miles between programs, you may lose some points in the conversion process.
Each of the rewards is advantageous in its own ways. While the cash rewards can help reduce your credit card balance, travel rewards can help you earn free trips for yourself and your loved ones. Rewards can also be used to purchase holiday and birthday gifts. One can also choose to invest the rewards he/she earns. The following are some of the rewards that you can earn from credit cards:
Cash back: by using a cash back credit card, you can earn a percentage of cash back on every purchase that you make with the card. It is interesting to note that different cash back credit cards offer different cash back rates, and thus, you can get the most from your cash back card by using it on the purchases that will earn you the most. Some cards offer a flat cash back rate, while others offer cash back for certain types of purchases.
Travel: Those bitten by the wanderlust bug can benefit significantly from a travel credit card as it can keep your travel budget within check without compromising on your adventures. Such cards offer the chance to earn miles or points that can be redeemed for a number of travel-related things, including flights, hotel accommodations, and more.
Points: as far as credit cards that offer points are concerned, the first thing that comes to mind often is rewards credit cards. These cards allow you to earn rewards in the form of points that can be used for travel-related purposes (such as hotel accommodation, flights), cash back and more. Another additional perk is that the number of the best rewards cards also comes with low intro APR periods.