Credit cards have become a huge part of our financial lives, don't you agree? Nowadays, with the rise of digital payments, more and more people are using credit cards. And you know what? One of the major reasons people prefer to have a credit card is because of the rewards they offer!
In India, various banks and financial institutions offer different types of credit cards, each with their unique reward programs. However, with so many different reward offerings available, many people are often confused about how these rewards work and how to make the most of them.
In this article, we will guide you through everything you need to know about credit card rewards and how they can help you save while you spend. Sounds good? Let's get into it!
What are Credit Card Rewards?
To put it simply, you get rewarded every time you make a purchase with your credit card. These rewards can come in various forms such as cashback, reward points, discounts, and other benefits. The more you use your credit card, the more rewards you can earn. It's a win-win situation!
Types of Credit Card Rewards in India:
1. Cashback: Whenever you use your credit card to make a payment, you get a percentage of the purchase price back in the form of cashback. For example, let's say your card gives you 5% cashback on all your purchases, and you spend Rs. 10,000. That means you get Rs. 500 back as cashback! You can either redeem your cashback as actual cash or credit it to your bank account at the end of each billing cycle.
2. Reward Points: This is one of the most common types of credit card rewards. You can earn a certain number of reward points based on the payment you make via your credit card. For instance, if your credit card offers one reward point for every Rs. 100 spent, and you spend Rs. 10,000 on your card. That means you get 100 reward points! And the best part? You can redeem these points for various rewards, like discounts on shopping or dining, gift vouchers, air miles, and much more.
3. Air Miles: Are you someone who loves to travel? Well, then you might want to check out credit cards with travel rewards which you can use to get some awesome perks like free flight tickets, upgrades, or other travel-related benefits. You can even use your air miles rewards to book hotels.
4. Other Rewards: Some credit cards offer bonus rewards for specific types of spending, like dining or travel. And that's not all - some cards also come with other awesome rewards, like free movie tickets, hotel stays, and more. These rewards are often part of special promotional offers or exclusive features of the credit card.
How to choose the best rewards card for you?
Most of the credit cards offer exciting rewards programs, and it can be confusing to pick the one that is best for you. Choosing the right rewards offering that matches your spending habits and budget can be a real game-changer! It can not only help you pay off your credit card bill, but also make your favourite things more affordable.
How to Earn Credit Card Rewards in India?
Now that you know about the different types of credit card rewards available in India, you're probably wondering how to actually earn them. Well, it's pretty simple - all you need to do is use your credit card for your everyday purchases.
Here are some ways to get started:
1. Choose a rewards credit card: Look for a credit card that offers maximum rewards and sign up for one that fits your lifestyle and spending habits.
2. Spend regularly: To maximise your rewards, use your credit card for all purchases, including groceries, dining, bills and more.
3. Make large purchases: Some credit card issuers offer bonus reward points for large purchases or for meeting specific spending goals. Check your card's terms and conditions for details.
4. Track your rewards: Keep track of your credit card rewards and their expiry dates to ensure that you use them before they expire.
5. Check for bonus offers: Some credit cards offer bonus rewards points or cashback for certain types of purchases or during certain periods of time. Keep an eye out for these offers and take advantage of them when you can.
Credit card rewards can be redeemed for various options such as statement credit, merchandise, gift vouchers, travel bookings, and more. It's important to check the redemption options available and choose the one that suits you the most.
However, to be eligible for credit card rewards, you usually need to have a decent credit score of at least 670. But don't worry if your score is lower than that - you can still work on improving it by using secured credit cards. Secured credit cards are backed by a fixed deposit and help you build your credit score. So, if you're eager to start earning rewards and reaping the benefits, get yourself a secured credit card & start shopping instantly!
Apply for the best credit cards available on the ZET app today and start earning amazing rewards every time you use your card. Through ZET, you can easily discover a credit card that matches your unique needs and helps you maximise your rewards.
1. Do we need a credit score to earn credit card rewards?
Yes, in most cases, you need a good credit score to earn credit card rewards. However, with secured credit cards, you can earn credit card rewards even with a low credit score.
2. Which is the best credit card that offers rewards in India?
Here are some of the most rewarding credit cards in India:
You can find more options along with their offering on the ZET App.