Rewards Credit Cards Benefits, Features, Reviews, How to Apply Step by Step Full Guide?

Rewards Credit Cards – For every dollar you spend, rewards credit cards give you some sort of “reward,” usually in the form of points, travel miles, or cash back. You can then use your rewards in a variety of ways, depending on the card. Today’s credit card market is dominated by rewards cards, which seem to have something for everyone. Cards differ in how rewards can be redeemed and what they can be used for, as well as in terms of reward structures.

Some credit cards give you benefits in the form of rebates and other useful discounts. the key is to find the best credit cards for your lifestyle and spending. For example, if you drive a significant distance, you may benefit from a fuel credit card. These cards offer benefits for every rupee you spend on fuel. But don’t stress if you don’t know where to start. Here is a comprehensive list of the best rewards credit cards in India, just for you.

Rewards Credit Cards

Checks, statement credits, merchandise purchased through the card company, gift cards, travel benefits, and often other rewards are available for redemption. Your credit card statement will show your current rewards balance at the end of each billing cycle. In an effort to entice you to sign up for a credit card, many companies also offer introductory bonus rewards. Those offers can include hundreds of dollars worth of incentives once you spend a certain amount, as well as a 0% introductory APR for the first few months and no fees for the first year.

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Rewards credit cards offer the main benefit of the rewards program and its redemption options. Reward points help you save your hard-earned money and give you the best experience using a credit card. By spending with these cards in popular categories like online and in-store shopping, travel and vacation, dining out, etc., you’ll earn rewards points in large numbers. Also, to redeem the accumulated points, you get a number of good and various options.

Rewards Credit Cards

Rewards Credit Card Details

How to compare credit cards with rewards?

Below are some crucial features to consider when looking for a rewards credit card.

annual dues

While many of the more lucrative rewards credit cards charge an annual fee, not all do. Therefore, it’s essential to compare the value of the rewards you anticipate earning throughout the year against the cost of any annual fees before signing up. Unless you spend a lot, paying the several hundred dollar annual fee for a high-end card could easily wipe out your rewards.

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Interest rates

For the first year, many rewards cards offer a 0% promotional APR. However, after that, you will be charged interest unless you pay your balance in full each month. Rewards cards can have high interest rates (often 15% to 20% or more) that add up quickly if you carry a balance. So, just like a high annual fee, interest charges can outweigh any card’s rewards.

Tiered vs. Fixed Rewards

Some cards have a tiered reward structure, others are fixed. Tiered cards offer different levels of rewards for different types of purchases. For example, a tiered card offers 3 points for every dollar spent on gas, but only 1 point for every dollar spent on groceries. Fixed cards, on the other hand, pay the same rewards wherever you use them. For example, a fixed rewards card might offer 1% or $1.50 back on all purchases.

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Reimbursement Spend Limits

The maximum amount you can earn in the most lucrative spending categories on many of the cards that offer cash back rewards is limited. For example, a card might give you 3% back on the first $1,500 you spend on groceries each quarter, but only 1% on every other $1,500 you spend on groceries until the start of the next quarter.

A good rewards credit card won’t force you to change your spending habits or spend more just to get rewards. Instead, it will work with your daily expenses.

How to find the best rewards credit card for you?

No rewards card is right for everyone, no matter how generous it sounds. Much depends on your specific circumstances. Therefore, it is worth taking a few additional steps before beginning your application.

1. Analyze your spending habits

The best rewards card for you will be one that allows you to use the money you normally spend without making any changes just to earn rewards. Take, for example, how much money do you spend each month on gas, groceries, or dining out? If this is the case, a card that offers additional rewards in those areas might be the best option for you.

Do you travel frequently? If that’s the case, the best card for you might be one that rewards travel purchases and allows you to use your rewards for future travel. Similarly, a co-branded rewards card issued by a particular company may make sense if you frequently shop at a particular hotel chain or buy most of your clothing and housewares there.

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Also, think about your overhead. If you only spend $1,000 or $2,000 a month on your credit cards, a card that requires you to spend $15,000 within the first three months to earn a significant introductory bonus will be of little use to you. Worse, it could encourage you to spend too much!) If that’s the case, you should look for a card with a lower minimum spend requirement and, most likely, a lower upfront bonus.

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2. Check your credit score

To be eligible for a good rewards card, you’ll need to have a high credit score. One of the three major national credit reporting agencies, Experian, says most people need a credit score of at least 670 to be eligible for a rewards card.1 (A secured credit card may be an option for people with lower scores). Some of them now also offer programs).

Consider your credit score before applying for a rewards card. If you have limited or poor credit, cards with better benefits and higher spending limits may not be available to you. Also, applying for an excessive number of credit cards can lower your score.

The bottom line

There are many rewards cards available, but choosing the right one can take some time and effort. If you need help, Investopedia has frequently updated lists of the best rewards credit cards for specific types of users. Also, keep in mind that you may want more than one rewards card. You can find a strategy that maximizes the return on all your spending by combining travel cards, cash back, and points.

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