Benefits of a credit card


When you take a credit card from a bank, they offer you reward points for each transaction. These reward points are redeemed for the value of actual money. You may have a silver card, a gold card or a platinum card; the reward points vary with different card types. There are many benefits you can get from these points.

The value of reward points

Reward points can make you eligible for gifts from the bank. The type of gift depends on the type of credit card that you own. For the same amount of reward points, you will get a better gift with a gold card than a silver card. A platinum card will get you the best gift offer from the bank. However, to get the best rewards from your credit cards, here are certain points to keep in mind.

Choosing a credit card

You will get reward points every time you use the credit card. Before anything else, you must understand which credit card can benefit you the most. Some credit cards offer extra reward points on some specific spends such as buying an air ticket, petrol or making purchased at certain shopping malls or stores. Ensure you get a card that offers extra reward points for purchases that you make more often. 

The price of gifts  

One thing you need to understand while getting a gift against your reward points is that the gift that you are getting can be bought from elsewhere too. Sometimes, a particular gift may even require some cash payment with the reward points. In these cases, a gift may become costlier with reward points than from the normal market. You would definitely not want to pay Rs.500 and 500 reward points for a gift that may costs Rs.700 outside. Always compare the prices of the two.

Gift vouchers  

You should always opt for a gift voucher from your bank by redeeming the reward points. This way, you will have the freedom to buy exactly what you need.

Reward point expiry

All reward points, from your credit card, comes with an expiry date. You should always be aware of the credit period so that you don’t waste them accidentally.


Best Viewed in - 1024 x 768 and above resolution, IE7 & above, & other popular browsers
Copyright © 2011 Flame. All rights Reserved