Credit Card Reward Point, Definition and Advantages

A Rewards Credit Card usually means a credit card which gives you a cash back, rebate, or reward points which the card owner may use in buying certain services and goods by using the reward they get from their credit cards.  Card holders can easily, even without them knowing it sometimes, earn rewards points from almost all the goods and services that they me purchase or avail.  Yet, most of these people do not really take notice in view of those accounts until they eventually experience in redeeming those great rewards.  Sometimes, these rewards may reach and accumulate value points as high as hundred or even thousand monetary equivalent, free of tax at that!

But beware of the following reasons or cases that may hinder you in redeeming your rewards:  blackout dates, expiration dates which you may not notice, and scattered balance spread across the multiple programs.  Hence, you should pay a closer look and attention in taking a dynamic and active way of dealing and managing your credit account rewards.

There are various kinds of credit cards that may bring you different rewards points.  You should choose the most suitable credit card for your needs.  You should also be familiar with the complex features of your credit card and the ways of earning reward points.  Most importantly, learn how to choose a credit card that is really of great help regarding your basic needs.  Convenience and that which gives good or high points of rewards should be the primary factors in choosing the card that suits you best.

The following could be effective tips in order for you to maximize your reward point value:

• Try to establish a balance/s in fewer programs.This implies that you should at least fly one or two airlines in a year to get your rewards.  You should also try to book at the same hotel chain, go to the same grocery store, and use only one and the same credit rewards card.
• Choose and utilize your credit card programs which are designed towards the way you spend your money.The needs you have as a person will be dependent in view of the rewards that you will get.  For example if you constantly travel then a mileage type of card suits you best.  A gas card is best if you are fond of driving.  You may also check out the site “credit card chaser” and utilize their tools to aid you in selecting a card that will help you in your spending.
• Refrain havinga maintenance fee. As much as possible, choose a credit card that does not require you to pay a yearly maintenance fee.  But if you are sure that you will earn more rewards if you pay an annual fee then go for that set up.  Otherwise, choose only that does not charge you with annual maintenance fee.
• Avoid purchasing electronics. Electronics does not actually compensate the reward that it may give you if you will use your credit card in paying it.  You better use your credit card in paying your travel fare because it will give you more rewards points.
• Have a record of expiration dates. Almost all rewards program has an expiry date wherein your points will become inactive or useless.  If you will not pay conscious attention with these expiration dates, you will just be throwing away your cash in the form of rewards.

List of Top INDIAN bank that provide reward point facility (Updated 30th June 2010)

• CITI Bank
• HDFC Bank
• HSBC Bank
• ICICI Bank
• AXIS Bank

Best Reading:

• Credit Card – Advantages and Disadvantages
• Advantages and Disadvantages of online banking

In conclusion, you have to be responsible and maximize in using your credit card most especially in purchasing only those which will give you high reward points. You must also exercise prudence in spending only that which is within your budget so as not to be drowned by unnecessary debt. As much as possible enjoy using the rewards of your credit card not only for yourself but also for your family and loved ones!

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