How to Tell if Credit Card Rewards are Worth It?
Credit card rewards are great financial tools for people who use cards to pay for most of their expenses. These types of cards allow users to earn a substantial amount of rewards, cash back, along with other features and benefits against the money they spend.
Financial institutions offer loyalty programs and reward points for users to make the maximum amount of transactions through their credit cards. Some feature-rich cards even offer reward points as a welcome gift and various other complementary services that help one maximise the return for the transactions one makes.
However, choosing the best reward card amongst the host of options available can prove to be a daunting task. You have to consider several factors to find out whether it is the perfect choice for you or not. Let’s check out how you can tell if your reward credit card is worthy.
It should fulfill all your specific requirements:
The primary purpose of your credit card is to work as a financial tool that meets all your unique requirements. For example, if you are a frequent traveller, you should opt for a card that brings maximum offers and discounts on outstation expenses, hotel bookings, air tickets, etc. On the other hand, frequent shoppers will benefit from a credit card that brings more cashback, discounts, etc.
If you do not have any specific requirement, you can choose something that has a balance of rewards. For example, a credit card offers significant discounts on a wide range of products while providing various complementary services and rewards.
Acceptability across various platforms:
Ideally, your reward credit card should be accepted at as many locations and point of sales terminals as possible. You will earn the maximum amount of reward points if you can use it for every expense.
It should have a good reward program:
A reward credit card is worth it only if it carries a profitable reward program. For example, RBL credit card offers a reward program of up to 2 points for every Rs. 100 you spend online or offline. It can help you accumulate a significant amount of points which you can redeem for discounts, gifts, cash back, etc. later.
You can get up to 20,000 reward points as well when you sign up for Bajaj Finserv RBL Bank SuperCard. It comes with a lucrative milestone program where you gain rewards every time you reach a spending milestone.
Bajaj Finserv furthermore provides pre-approved offers on credit cards, personal loans, home loans, business loans, and a plethora of other financial products. These offers help you save time when applying for finance by simplifying the process.
You only have to provide some necessary information online to check your pre-approved offer.
It should provide a wide range of loyalty programs and exclusive offers:
Your credit card should offer various types of exclusive offers under its loyalty program. For example, credit card rewards include complimentary airport lounge admissions up to 8 times in a year, fuel surcharge waivers, and complimentary movie tickets and discounts for up to 15 times in a year. Such exclusive offers provide cardholders with profitable benefits against the money they spend using their credit card.
Your credit card should provide more rewards than other options:
The best reward credit card should offer more returns than other cards available in the market. However, you should not choose a financial tool depending solely on the provided reward program. Select a card that carries a decent reward program as well as minimum charges and interest rates. You will be able to benefit from its returns and also save a substantial amount of money when using it.
Therefore, the reward program is one of the most appealing aspects of a credit card as you earn something in return for the money you spend. Carefully considering the above-mentioned points will help you understand whether your credit card has a good reward program or not and how to utilise it better.
Gaurav Khanna is an experienced financial advisor, digital marketer, and writer who is well known for his ability to predict market trends. You can find Gaurav on Linkedin.