Credit card companies, in an effort to increase their client base provide
credit cards with rewards. Reward cards as they are known bring cashback,
shopping discounts, insurance, travel discounts, hotel discounts and discounts
on business expenses etc. However, it takes more than a casual effort to get the
maximum out of your reward card. This article provides a concise insight on how
make the most of your reward card.
Reward cards generally carry a high rate of interest than a non-reward
credit card. To avail the benefits of a reward card fully, make sure that
you repay your balance in full every month. If you miss on repayments it is
very likely that credit card companies won't reward you.
The cashback mentioned in the reward cards is usually the upper limit. The
amount of cash that you will earn will always be less than the mentioned limit
unless your spending levels with the credit card are very high. So, it will be
better to have a reward card with high cashback limit.
Credit card companies have exclusive tie-ups with stores, vendors, filling
stations, airlines, courier companies, hotels, resorts, hospitals etc. To get
the benefits of rewards the spending has to be done at those very places
mentioned in the credit card, otherwise the rewards might not get credited to
Some credit card companies give initial reward points, travel miles, airmiles
or shopping discounts when you make your first purchase but they can be redeemed
only when you spend a certain 'high' amount of money with your credit card. Make
sure that the spending limits are low, so that you don't have to burn a hole in
your pocket before getting a glimpse of that reward.
Credit card companies play the tricky game of reward limits, reward expiry,
blackout dates, travel restrictions, etc. to limit the economic impact of
rewards on themselves. Getting a feel about these restrictions and how they will
affect the reward scheme of credit card will give a picture whether credit card
company is duping you or is a genuine reward provider.
Rewards that come with credit card enhance its value and provide additional
services and savings for the credit card holder. But, if a credit card holder is
not smart enough he might end up paying a high interest rate without getting any