Types of Best Rewards credit card – Get Rewards and Cashback

A rewards credit card is like a special card that gives you presents when you use it to buy things.

Best rewards credit cards vary based on spending habits and preferences. Common types include cash back, travel, airline miles, hotel, points, rotating category, and premium cards.

These presents can be points, miles, or even money back. You earn these presents by spending money with the card.

Once you have enough presents, you can exchange them for cool stuff like cash, free trips, or shopping vouchers.

Sometimes, when you first get the card, they might give you even more presents if you spend a certain amount of money in a certain time.

These cards also come with extra goodies like free travel insurance or special services.

How does Rewards credit card Work?

Rewards credit cards work by offering incentives for using the card to make purchases. When you use the card, you earn points, miles, or cash back based on your spending.

These rewards accumulate over time, and once you’ve earned enough, you can redeem them for various benefits such as cash back, travel expenses, merchandise, or gift cards.

The card issuer partners with merchants and other businesses to provide these rewards and typically earns revenue from transaction fees paid by merchants.

Users benefit by earning rewards for their spending, while the card issuer gains customer loyalty and transaction volume.

It’s essential to use the card responsibly, paying off the balance each month to avoid accruing interest charges that could outweigh the value of the rewards earned.

Rewards credit card Benefits

Here are the benefits of rewards credit card:

• Earn Rewards: Get points or cash back when you buy things.
• Sign-Up Bonuses: Extra rewards when you first get the card.
• Flexible Rewards: Use rewards for cash, travel, or gifts.
• Extra Perks: Freebies like travel insurance or airport lounge access.
• Category Bonuses: Get more rewards for certain types of purchases.
• Build Credit: Helps you build a good credit history.
• Track Spending: Keep an eye on your spending easily.
• No Extra Fees: Some cards waive foreign transaction fees.
• Manage Cash Flow: Pay for purchases later, helping with budgeting.
• Fraud Protection: Strong security to protect your card from unauthorized use.

Types of Best Rewards credit card

Here are some common types of rewards credit cards that are often considered among the best:

1. Cash Back Cards: These cards offer cash rewards for purchases made using the card. They may offer a flat cashback rate on all purchases or higher cashback rates in specific categories like groceries, gas, or dining.
2. Travel Rewards Cards: These cards earn points or miles that can be redeemed for various travel-related expenses such as flights, hotels, rental cars, or vacation packages. Some travel cards also offer perks like airport lounge access or travel insurance.
3. Airline Miles Cards: Similar to travel rewards cards, airline miles cards earn points or miles specifically for airline travel. These miles can be redeemed for flights, upgrades, and other travel-related expenses with specific airlines or their partners.
4. Hotel Rewards Cards: These cards earn points or rewards specifically for hotel stays. Cardholders can accumulate points through hotel stays and other purchases, which can then be redeemed for free nights, upgrades, or other hotel perks.
5. Points Rewards Cards: These cards offer points for purchases, which can be redeemed for a variety of rewards including merchandise, gift cards, statement credits, or experiences.
6. Rotating Category Cards: Some cards offer rotating bonus categories that change every quarter. Cardholders can earn higher rewards rates (usually in the form of cash back or points) on purchases made within these categories.
7. Fixed-Value Rewards Cards: These cards offer rewards that have a fixed cash value per point or mile, allowing for more straightforward redemption without worrying about award charts or blackout dates.
8. Business Rewards Cards: Designed for small business owners, these cards offer rewards tailored to business expenses such as office supplies, advertising, or travel. They may also offer business-specific perks like employee cards with customizable spending limits.
9. No Annual Fee Cards: Some rewards cards come with no annual fee, making them attractive for those who want to earn rewards without paying an annual fee. These cards may offer lower rewards rates or fewer perks compared to cards with annual fees.
10. Premium Rewards Cards: These cards come with high annual fees but offer premium benefits such as travel credits, airport lounge access, concierge services, elite status with hotels or airlines, and more.

what is Instant rewards credit card?

An “instant rewards credit card” is a credit card that gives you rewards or benefits right away.

It might mean you find out quickly if you’re approved for the card after you apply.

Or, it could mean you get rewards as soon as you start using the card, like bonuses for spending a certain amount in a short time.

standard chartered rewards credit card

The Standard Chartered Rewards Credit Card is a credit card offered by Standard Chartered Bank that lets users earn reward points on all their purchases.

In addition to reward points, cardholders can enjoy extra benefits such as complimentary lounge access, the option to add supplementary cards, and contactless payments.

The card also offers the opportunity to earn accelerated rewards points after reaching a certain monthly spending threshold.

By using the card, users can accumulate reward points that can be redeemed for various rewards or used to offset outstanding balances.

The annual fee is waived if users spend at least Rs. 3 lakh in the previous year. Other benefits include fuel surcharge waivers, contactless payments, easy EMI conversions for spends above Rs. 2,000, and supplementary add-on cards.

Should you get this credit card?

Opt for this card if:

• You want to earn reward points.
• You are interested in availing basic travel benefits such as lounge access.
• You can avail of the renewal fee waiver by spending Rs. 3 lakh annually.
• You are satisfied with the low reward rate.

Look for other options if:

• You prefer direct cashback or higher savings.
• You want premium travel benefits.
• You are not ready to pay any annual fee.
• You are looking for better rewards redemption value.

Eligibility Criteria & Documents Required:

• Occupation: Salaried or Self-employed
• Age: 18 to 65 years

Documents Required: Refer to the bank’s policy.

Fees and Charges:

• Joining Fee: Nil
• Annual Fee: Rs. 1,000 + GST (reversed on spending Rs. 3 lakh in the previous year)
• Finance Charges: 3.75% p.m. or 45% p.a.
• Late Payment Charges: Vary based on outstanding balance.

How to Choose Best Rewards Credit Card?

To select the best rewards credit card, follow these straightforward steps.

First, identify your spending patterns to understand where you frequently use your money, like groceries or travel expenses.

Next, decide on the type of rewards you prefer, whether it’s cash back, travel points, or other perks.

Then, compare the rewards rates offered by different cards to find the one that aligns with your spending habits and offers the most significant benefits.

Keep an eye out for sign-up bonuses, as they can provide a nice boost to your rewards when you first get the card.

Additionally, consider any annual fees associated with the card and whether the benefits outweigh the cost.

Ensure the card’s redemption options suit your preferences, allowing you to use your rewards the way you want.

Look for any extra perks the card may offer, such as travel insurance or shopping protections, to maximize its value.

Read the terms and conditions carefully to understand factors like interest rates and rewards expiration dates.

Check your credit score to ensure you meet the card’s requirements, as some cards may require a good credit score for approval.

Lastly, read reviews and compare different cards to gather insights from other users before making your decision.

By following these steps, you can find the rewards credit card that best suits your needs and maximizes your benefits.

How to redeem rewards?

Redeeming rewards on a rewards credit card is pretty easy. Here’s how it works: Once you’ve earned enough points or cash back on your card by making purchases, you can usually log in to your credit card account online or use a mobile app provided by the card issuer.

From there, you’ll find an option to redeem your rewards. You can choose what you want to redeem your rewards for, whether it’s cash back, gift cards, merchandise, travel expenses, or other options available through the rewards program.

Once you’ve made your selection, follow the instructions to complete the redemption process.

In some cases, you may also be able to redeem rewards over the phone or by contacting customer service.

Just make sure to check the terms and conditions of your rewards program to understand any restrictions or limitations on redemption.

Bottom Line

Rewards credit cards are a great way to get bonuses and benefits when you spend money, making them useful for people who want to get more out of their purchases.