Credit Cards

7 Reasons To Get A Rewards Credit Card Today

You Still Need Reasons To Get A Rewards Card? OK, Here’s 7

Everyone wants rewards! Anyone with active brain matter between their ears can come to the conclusion that it’s better to get something for your spending than nothing at all! Cash lovers end up with nothing except their goods after a purchase, but if you use a rewards credit card you are building a valuable stash of rewards points with every single purchase. These can be used for a wide variety of things. Let’s take a look at what these types of cards can offer!

Spending = Earning


1. Reward points


The Citibank Rewards is currently one of the best rewards cards in India.

These are one of the most popular types of benefits of rewards credit cards, as almost all of them offer reward points on different things, such as dining out, purchases, shopping, fuel, etc. Different rewards credit cards offer different reward point rates, as some can offer 5 reward points per rupee and some can offer 1 reward point per rupee.

Moreover, different categories have different reward point rates, such as you get 3 reward points on dining out and 2 reward points on all other purchases. These reward points can be redeemed for gift cards at certain stores, gifts, discounts on birthday and holiday shopping, etc.

Apply For The Citibank Rewards Card

2. Frequent flyer miles

One of the greatest attractions of rewards credit cards is frequent flyer miles. This benefit is offered by some standard rewards credit cards as well as individual cards of different airlines. Almost all of the airlines today have at least one card that offers frequent flyer miles to customers.

Through this, cardholders can get miles whenever they spend on airlines, which is usually at the rate of one mile per rupee or sometimes even one mile on two rupees. These airline miles can be redeemed for a plane ticket, depending on which all airlines the card is affiliated with.

Along with the air miles that you get while spending on your credit card, you also get bonus miles when you sign up for a new frequent flyer card. Through these sign up bonuses, you can almost get 50 to 100 per cent free flight within one month or two.

Besides the plane ticket, you can also redeem your airline miles for different things as per the terms and conditions of the credit card you have. These include fancy dinners, sport gear, discounts on purchases, etc.

3. Cash back

CITI cash-back-credit-cardMany people opt for cash back credit cards, as they are highly advantageous when it comes to making select purchases, such as fuel, groceries, clothes, dining out, movies, etc. Moreover, some rewards credit cards offer more cash back than other credit cards on certain stores, which are partnered with the credit card.

So, if you do most of your shopping from one brand or store, you can opt for the rewards card of that particular store or any other regular credit card that is affiliated to that store and offers cash back on purchases from that store. Generally, you can get 1 to 5 per cent cash back on all types of purchases.

Apply For The Citibank Cash Back Card

Some Other Perks Are Often Overlooked

4. Investment rewards

You also get investment rewards with some rewards credit cards. These types of investment credit cards offer high cash back rates. However, in return they ask you to deposit the cash back that you get directly into your investment account. This way you earn some money and get to save it also. Many people prefer these types of rewards credit cards in order to rack up their investments.

5. Signup bonuses

Rewards credit cards offer signup bonuses and rewards to customers, when they apply for the credit card. They can get reward points, which can be redeemed for air travel or gift cards. Moreover, applicants with good CIBIL score can get credit cards with lower interest rates and no annual fees.

6. Insurance

Rewards credit cards provide different types of insurances and protections to customers, such as travel insurance, rental car insurance, product warranties over the warranty of the manufacturer, etc.

Finally, You Can Build Your CIBIL As Well

7. Build credit

Rewards credit cards help you to build your credit. They are beneficial for people who are trying to boost their CIBIL score or have no credit score at all. Like other credit cards, your payment activity on your rewards credit card is reported to the credit bureaus, thus helping you improve your CIBIL score, when you use your credit card responsibly.

These are the 7 reasons to get a rewards credit card. So, get your very own rewards credit card today itself and take advantage of its various rewards and perks. Make sure that you use your rewards credit card responsibly, otherwise you can end up in debt.

Jay Kaul

About Jay Kaul

Jay is a financial and credit expert and freelance contributor to CreditSmart. He's always keeping his eyes open for the latest credit card trends in India and provides a sharp insight on new entries into the market.

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