Rewards Credit Card:

What is a rewards credit card? It is simply one that rewards you for spending money on it! In effect it is rewarding you for making purchases on the card. A credit card is in any case an easy and convenient way to pay for your purchases over a period of time. Any purchase made with a credit card is on borrowed money and you need to pay it back at the end of every billing cycle. In order to maintain a clean credit history, make sure you pay your bills in full and on time every time.

What is the best credit card?

You can benefit from a high rewards credit card with many perks and even ease your financial burden, if you use it wisely and responsibly. The best rewards credit cards offer generous reward points on daily transactions like buying your groceries, fuel and other supermarket purchases as well as on leisure or entertainment expenses. There is no single ‘best’ rewards credit card as such. The ‘best’ rewards credit card depends on one’s spending patterns, credit requirement among other factors. It could get a little confusing to choose the best credit card for rewards, as the market is flooded with a lot of offers.

Kinds of rewards cards

There are several kinds of credit cards that offer different reward programs for different category spends. There are cards that offer free air miles on select or multiple airlines based on the amount you spend on your card. Choose this if you fly a lot on business or pleasure. Or you can opt for fuel cards that waive the surcharge on fuel. Some cards offer discounts and rebates on shopping, at restaurants or when booking tickets for movie or other shows. Some offer cash back rewards which can be adjusted against the credit card outstanding. Some cards combine several of these features. As with any financial services product, you need to research the various cards to see which best suits your priorities and lifestyle.

For instance, Citi Rewards Credit Card has a plethora of rewards on offer. You get accelerated 10X Reward Points on your credit card spends at select partners, apparel and department stores. For other transactions, you get 1 Point for every Rs125 spent across all categories. These can be redeemed for attractive options from a range of categories like travel, premium merchandise, cashback and much more.

Similarly, other banks also offer rewards on certain spends. For instance, the Standard Chartered Platinum Rewards credit card earns you 5 reward points for every Rs.150 spent at fine-dining outlets, partner hotels and on fuel. You get 1 reward point for every Rs 150 spent across all other categories and there is no joining fee if you apply online.

So shop around for the best card to shop with! There are great offers out there and determining what kind of rewards you would like will help you choose the right one.

Note: The cards mentioned in the article are merely indicative of the kinds of rewards on offer in the market.  You will need to choose your card based on your specific requirements.