Published On:Monday, January 20, 2014
Posted by devil
Credit Card Reward Points - Are They Really Rewarding? By Priya Agarwal
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Credit Cards have come to become an integral part of our lives and our dependency on them can perhaps be regarded as a necessary evil more than anything else. If you are a frequent user of this plastic money, you must have come across the terms 'reward points' or 'cash back' offers. Most of us would have heard about it, but do we know enough to use it well?
Not really, right?
What do they mean?
In fact, using these points and offers will help you save money and a significant amount of it as well! But, in order to save some, you will have to spend first. So, how does the whole thing work?
For starters, the number of reward points you can collect depends on the type of card you avail. For instance, your reward points will vary if you have a gold or a platinum card and it's different for a co-branded card. For instance, for every x amount you spend, you will earn a certain number of reward points. The value of x will across banks and also depend on the type of card you own.
These points will accumulate from the time you start using your credit card. The longer you save these points, the more will be their value. And, yes you needn't worry about these having a validity date. You can make use of them, until the time your card expires.
Types
The types of credit card rewards mainly includes; cash or points.
For some of us, it wouldn't be saving if it wasn't in the form of cash. This is precisely why a cash back offer makes perfect sense. Now, to avail these offers easily, you must first have used your card for sometime now (at least 6 months) so that you may be eligible for such offers. Also, ensure that you are prompt in paying your bills, some banks tend to cancel your rewards if your bill remains unpaid. How much you can get back depends on how much you have spent and you will find the same as part of your monthly bill statement. It will give a summary of how much you have accumulated till date.
If saving is not your only aim of earning credit card rewards, then take a look at the reward points you have earned till date. Most banks offer reward point facility to either purchase a gift of your choice from their very own catalogue or if they have partnerships with various merchant outlets, you can very will have the option of using your points there. For instance, if you have shopped for Rs.2000, and you have earned points worth Rs.500 you sometimes have the choice of using these points to get some discounts on your bill. You can avail some attractive offers when you shop online.
Or, if you have a co-branded card, wherein your bank has issued a card for exclusively one bank such as petrol cards or air mile cards and so on. This means that you can get the offers and points only for that particular brand of petrol or from a particular airline company only. Miles are usually calculated for every air mile travelled. These are indeed popular forms of saving up on air travel.
How can you make the most of reward point offers?
In order to make the most of these benefits, you will first have to sign up a redemption form available from each bank. These are simple, online forms. Once that's done all you have to do is keep a track of your points that get accrued till the time you want to redeem them.
Credit card reward points are definitely a good idea, but does that mean you will need to use your credit card more often? That is definitely one thing you need to keep in mind, because at the end of it all, you will be paying your bills and not to forget those high interest rates that come with it.
Get to know more on how to raise your credit score so that you can avail the best suited loans. For starters, visit http://www.rupeezone.in, you can avail free debt consulting services and learn how to manage your finances better.With over 2 lakh customers, 25 + years of expertise in the field, we are a well established financial services organization specializing in various types of loans; be it for your personal use or otherwise.
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