Tips To Choose High Reward Credit Cards

If you use the rewards credit cards smartly, it can be your ticket to incessant stream of passive income and advantages that you get to enjoy from making regular purchases. When we talk about rewards, they come in various forms such as – hotel points, fuel surcharge waiver, cashback, airline miles, general spending points, shopping, dining, or entertainment discounts, and various other perks.

The market is flooded with lots of credit card options and it is indeed a laborious task to choose the one best suited to your needs. So, are you looking for a credit card offering the best of rewards, if you are nodding your head in affirmation, following tips will surely come handy.

Types of rewards credit cards

Before I discuss those important tips, I am sure knowing different types of high rewards credit cards will definitely make your choice easier.

Three Types Of Rewards Credit Cards –

    If you have a travel rewards credit card, you get to earn travel miles. Some banks offer co-branded cards where the banks offer these cards in association with some airline company. Others are independent of any particular airline. Some of the best travel rewards cards are – American Express Platinum Travel credit card, Citi Premier Miles credit card, Axis Bank Privilege Card, SBI IRCTC credit card.

    If you go for cashback credit cards, they will offer you cash rewards which can be applied as a statement credit or it can also be e-mailed as a check to the cardholder. Some of the best cashback credit cards are – ICICI Instant Platinum credit card, Standard Chartered Platinum credit card, SBI Simply Click credit card, CitiBank Cashback credit card. 

    The third one is points rewards credit cards. These cards allow you to earn points that can be further redeemed for merchandise. The points can be redeemed for gift cards that you can use instead of cash at well-known stores.

Tips To Choose The Best High Rewards Credit Cards


1. Knowing The Annual And Renewal Charges

There are numerous credit cards in the market offering the best benefits, but the annual and renewal fees tend to outweigh these benefits. There is no doubt that the credit card offers look tempting, but make sure you take your time and carefully research the annual fees, renewal charges, and various other fees associated with the card. 

2. Choose A Credit Card As Per Your Lifestyle

If you like shopping, then choosing a credit card with cashback offers and discounts makes more sense instead of a card offering air miles. Similarly, if you don’t know how to play golf, there is no point in choosing a credit card offering golf club perks.

3. Know The Interest Rates

This is an important aspect while deciding a high reward credit card. Choose the one offering lowest interest rate. You will come across various credit cards offering 0% APR, but make sure you are not fooled by such offers as these are nothing but promotional offers. Once the promotional period gets over, in most of cases you will have to pay a huge amount as interest charges. Most importantly, you should pay all your debts in time, this will help you avoid high interest fee.

4. Compare The Features 

Spend some extra time to compare the features of various high rewards credit cards to make out which one is suitable for you. Take a closer look whether the card is offering any rewards or benefits as per your needs, security features in case of any theft or fraud, and various other fees such as late fees & annual fees, etc.

5. Analyze Your Spending Pattern

Before making a choice for a credit card, make sure you have examined your spending habits and decide what you would like to use your credit card for. If you like online shopping, then choose a credit card with attractive reward programs for shopping. For instance, HDFC Snapdeal credit card gives you an opportunity to earn 3X reward points when you shop at 

Similarly, if your lifestyle includes frequent traveling, then you can opt for Indian Oil Citi Platinum credit card. This credit card enables you to save on fuel purchases and redeem the points collected for the actual fuel. If you tend to spend more on leisure, then you should go for a card offering benefits such as free movie tickets or discounts at restaurants. 

Author Bio - Ankita Dixit

Ankita is a freelance writer who writes about finance, loans, credit cards and insurance.

Share this

Related Posts

Next Post »