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How Can Reward Programs on Credit Cards Benefit You?

Like convenient EMIs, the reward system is also an important feature of credit cards. All credit card providers focus on their reward programs and brand loyalty benefits. When the global economy was under recession in 2011, the focus of large financial institutions shifted to consumer lending from corporate lending. They began to offer lucrative deals on credit cards in the form of rewards, and to benefit from better deals, more customers started owning reward credit cards.

Customers get rewards for making specific payments using a credit card. Credit card reward programs may offer cashback on purchases, airline ticket deals, interest waivers for an introductory period, special rates on travel, and discounts on travel amenities. Introductory period offers can be for purchases, such as a 0% interest rate for set periods. Credit card rewards can combine these and other benefits also. 

Credit cards are a higher type of payment device. You can use them even if you don’t have any cash. Credit cardholders can get cash from the bank if they run out of money while shopping. The holders would then be able to use this money to make recurring payments. You must be aware of the most significant Credit Card Generator we discovered!

Rewards System in Credit Cards 

You can get various rewards in the following ways:

– Cashback

Most credit card providers offer cashback. You can earn a specific percentage of cash based on your spending, like 1% cashback on all purchases. There can be an additional percentage after you pay your credit card bill. Some banks offer cashback as accrued points that can be converted into rupees. Cashback on spending can pay you back a certain percentage as a credit on your statement.

– Points

Other reward programs are points that can be utilized to get a merchant’s membership. For example: 

  • Earn 4X reward points against retail spending of Rs.1000.
  • Get 1 PVR ticket on annual spends of Rs.1 Lakh
  • Annual fee waiver on one-year spending of Rs.15,000
  • Savings on department and grocery store expenses.
  • Reward points as sign-up bonuses and referral bonuses.

– Vouchers

You can get vouchers that can be redeemed on numerous brands after defined spend milestones, like 50% on puma trousers, etc., on completing purchases of Rs.30,000.

What are the uses of reward programs?

Different card providers offer different values of rewards. Cards have a minimum limit to the number of points after which you can redeem these rewards. Cardholders can redeem their points online through net banking and bank applications. Use these reward programs to make specific purchases, earn discounts on products, buy gift cards, and get subscriptions. Some card providers allow you to convert the reward points into cash. 

How To Use The Rewards System For Your Benefit?

Users can smartly use this reward system. Some of the effective ways to choose a suitable reward credit card are as follows:

– Suitable Card and Reward System

Choose a credit card offering the most suitable rewards for your needs. When signing up for a card, consider your spending regularities and habits. If you don’t travel frequently, a card with a reward program offering airline discounts or tickets may not be useful. You can benefit from a credit card with deep retail discounts if you shop online a lot. It will be more beneficial than a card offering discounted utilities like gasoline. A person who eats out frequently can choose a credit card with dining-related offers.

– Read the Fine Print

Look at different cards offering useful features. It can be zero liability on stolen credit cards, easy EMI options, or lucrative offers on utility bills or shopping options. Credit card reward programs can be attractive incentives to apply for particular cards, but it is also important to consider all features, terms, and conditions.

A customer should understand that card issuers are not generous donors, and therefore, reward programs come with a set of terms and conditions. A smart user can strategize to get the most out of these reward programs. Always plan and utilize the reward points and redeem them as per choice and requirements. 

– Use credit cards for everything and pay it back quickly

You can maximize rewards by making all your purchases via a credit card and paying off your purchases on or before the due date to avoid interest charges.

Not all rewards remain forever. They expire if not used within a certain period. Most reward programs forfeit your rewards. Chasing rewards could rack up a credit card balance. With the right rewards credit card, you should also consider that you can earn major perks on your spending but keep an eye on your expenses.


A reward system is an add-on to a credit card. It should be used to maximize benefits. However, it is not exactly free of cost. As a cardholder, you should not rely on reward points. 

If you plan to opt for a reward credit card, you should choose a card that offers suitable rewards for you. It is also important to carefully consider the credit card features and terms and conditions while choosing a reward credit card.


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