If you use
the rewards credit cards smartly, it can be your ticket to incessant stream of
passive income and advantages that you get to enjoy from making regular
purchases. When we talk about rewards, they come in various forms such as –
hotel points, fuel surcharge waiver, cashback, airline miles, general spending
points, shopping, dining, or entertainment discounts, and various other perks.
The market
is flooded with lots of credit card options and it is indeed a laborious task
to choose the one best suited to your needs. So, are you looking for a credit
card offering the best of rewards, if you are nodding your head in affirmation,
following tips will surely come handy.
Types of rewards
credit cards
Before I
discuss those important tips, I am sure knowing different types of high rewards
credit cards will definitely make your choice easier.
Three Types Of
Rewards Credit Cards –
●
If you have a travel rewards credit card, you
get to earn travel miles. Some banks offer co-branded cards where the banks offer
these cards in association with some airline company. Others are independent of
any particular airline. Some of the best travel rewards cards are – American
Express Platinum Travel credit card, Citi Premier Miles credit card, Axis Bank
Privilege Card, SBI IRCTC credit card.
●
If you go for cashback credit cards, they will
offer you cash rewards which can be applied as a statement credit or it can
also be e-mailed as a check to the cardholder. Some of the best cashback credit
cards are – ICICI Instant Platinum credit card, Standard Chartered Platinum credit card, SBI Simply Click credit
card, CitiBank Cashback credit card.
●
The third one is points rewards credit cards.
These cards allow you to earn points that can be further redeemed for
merchandise. The points can be redeemed for gift cards that you can use instead
of cash at well-known stores.
Tips To Choose The
Best High Rewards Credit Cards
1. Knowing The Annual
And Renewal Charges
There are
numerous credit cards in the market offering the best benefits, but the annual
and renewal fees tend to outweigh these benefits. There is no doubt that the
credit card offers look tempting, but make sure you take your time and
carefully research the annual fees, renewal charges, and various other fees
associated with the card.
2. Choose A Credit
Card As Per Your Lifestyle
If you like
shopping, then choosing a credit card with cashback offers and discounts makes
more sense instead of a card offering air miles. Similarly, if you don’t know
how to play golf, there is no point in choosing a credit card offering golf
club perks.
3. Know The Interest Rates
This is an
important aspect while deciding a high reward credit card. Choose the one
offering lowest interest rate. You will come across various credit cards
offering 0% APR, but make sure you are not fooled by such offers as these are
nothing but promotional offers. Once the promotional period gets over, in most
of cases you will have to pay a huge amount as interest charges. Most
importantly, you should pay all your debts in time, this will help you avoid
high interest fee.
4. Compare The
Features
Spend some
extra time to compare the features of various high rewards credit cards to make
out which one is suitable for you. Take a closer look whether the card is
offering any rewards or benefits as per your needs, security features in case
of any theft or fraud, and various other fees such as late fees & annual
fees, etc.
5. Analyze Your
Spending Pattern
Before
making a choice for a credit card, make sure you have examined your spending
habits and decide what you would like to use your credit card for. If you like
online shopping, then choose a credit card with attractive reward programs for shopping. For instance, HDFC Snapdeal credit card gives
you an opportunity to earn 3X reward points when you shop at Snapdeal.com.
Similarly,
if your lifestyle includes frequent traveling, then you can opt for Indian Oil
Citi Platinum credit card. This credit card enables you to save on fuel
purchases and redeem the points collected for the actual fuel. If you tend to
spend more on leisure, then you should go for a card offering benefits such as
free movie tickets or discounts at restaurants.
Author Bio - Ankita
Dixit
Ankita is a
freelance writer who writes about finance, loans, credit cards and insurance.
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