123ArticleOnline Logo
Welcome to 123ArticleOnline.com!

ALL >> Education >> View Article

What You Should Know About Reward Points On Credit Cards

By Author: Artham Vidya
Total Articles: 24

How Do these Reward Points Work?

Credit card issuing banks usually award you a point when you spend a certain amount of money with their card. This can vary from Rs 40 to Rs 100 depending on the bank (which issues the card) and where you buy it. This means that on every Rs 40 you spend, you get one reward point. So if you went on a shopping spree, spent Rs. 6000, and put all the payment on one credit card, you would have collected 150 reward points.

This does not mean that 1 point equates 40 or 100 rupees or even that 1 point is equal to 1 rupee, when you want to redeem it against products. A certain bank, for instance, offers an Rs 1000 item in exchange for 5000 rewards points. This means that a point is worth 20 paise.

As I said earlier, what and where you buy affects the points you earn. If you eat at a five-star restaurant, you are bound to accumulate points faster than you would by paying your utility bills.

That is because the card issuing entity has an arrangement called an interchange fee with various merchants. This obviously differs from establishment to establishment. Some merchants may pay the card company a higher fee to induce more sales.

Co-branded cards offer higher rewards for each rupee spent. Co-branded cards are those used expressly for a specific purpose – for example air tickets, fuel, etc. If you use your car regularly or you fly frequently the credit card company benefits from it and you also get to collect more reward points. A dip-stick survey shows that rewards points with co-branded cars can vary from 5 to 10 times of that from other ordinary cards. With co-branded cards you can also avail of discounts on purchases.

Credit card companies often use reward points as a selling point when they are trying to sign you up as a customer. Rewards points should not the reason for getting a credit card, however attractive the offer.

However as a customer and especially if you are in the habit of using credit cards often, I would suggest that you should take full advantage of the benefits and get them redeemed frequently. Look for cards that offer you a wide range of options in terms of what you can buy – apparels, accessories, gift vouchers, consumer electronics, home appliances, air miles, furnishings, etc.

You can redeem these points both online – on the site of the card company and if you have an online account with them – or by calling them up. These products are delivered free-of-cost to your home.

Therefore, next time you get your credit card statement look hard at your reward points and start shopping!

Total Views: 50Word Count: 462See All articles From Author

Education Articles

1. Selection Procedure Of Nda Exam
Author: Johny Gibbes

2. Study Abroad Consultants - Moving To Canada Made Easier For Students
Author: Ishita Trivedi

3. A Great Career From Six Sigma Green Belt
Author: GRASPSKILLS

4. Develop Your Skills With The Help Of Instructor-free Self Learning Courses
Author: Multisoft Virtual Academy

5. An Overview Of Ibm Tivoli Storage Manager Along With Its Key Benefits
Author: Multisoft

6. Coaching Class - 6 Ways To Excel At Coaching Class
Author: Arpita Classes

7. Why Overseas Education Consultants Became Necessary In Today’s Global Education Market?
Author: aanandita kumari

8. Top 6 It Security Certification Programs For Boost Your Career
Author: Naveen

9. 700-260 Study Guides
Author: rocky hughes

10. Search For Best B.tech University In India Ends At Dehradun
Author: Graphic Era

11. Final Choice Of Best Engineering College In Uttarakhand
Author: Paul Wright

12. Using Interface We Get The Multiple Interface In Java
Author: infocampus

13. Cbse To Introduce Book Lockers!
Author: minglebox

14. Industrial Training In Webtrackker Technology
Author: webtrackker

15. Why The Best Engineering College In Dehradun Is The Perfect Solution For You
Author: Graphic Era

Login To Account
Login Email:
Password:
Forgot Password?
New User?
Sign Up Newsletter
Email Address: