Credit cards are no longer an inconvenient method of paying for your daily expenses. Modern credit cards offer a slew of rewards and benefits to add incentive to cashless transactions for your everyday expenditure. These benefits are generally offered in terms of reward points, which can be redeemed for additional discounts or offers. Here are some of the most popular types of credit cards with their rewards programs.
Cash Back Credit Cards
One of the more popular types of credit cards is the one that allows you to earn cash while you make your purchases. This type of card is best for people who use their credit cards a lot. They make for a nice incentive to pay back all monthly dues in good time.
General Reward Points Credit Cards
The general reward point cards accumulate specific amount of points for each purchase over time. These points can be redeemed for a variety of gifts such as electronics, plane tickets, jewelry and more, as per your card’s terms and conditions.
Hotel/ Travel Points Credit Cards
These types of cards specifically accumulate points to result in hotel and travel upgrades on your holidays. They usually give you special points for spending money on certain hotel chains that the credit card company may partner up with. This type of card is extremely useful for frequent travelers, where paying for hotel bills with credit cards can help them get free hotel stays once in a while. Most of these cards come with a huge annual fee, which makes it a deterrent for people who don’t travel frequently.
Retail Rewards Credit Cards
Retail rewards are given to clients who shop at specific retail chains wherein the points can be redeemed for products and services form the retailer. The reward points add up every time you make a purchase. It is recommended that you do not carry a balancer with retain cards as they tend to have higher interest rates.
Petrol cards are usually of two types- general and brand specific. General cards offer the same amount of rewards, irrespective of the brand of petrol you fill. This generally converts to a flat 1% cash back on your fuel purchases. In case of brand specific cards, you can get up to 5% cash back when you fill petrol of a specific brand, while you get about 1% cash back for other brands of petrol. This is a great investment if you are generally loyal to one brand of petrol. However, things can get tricky if you usually travel across cities where you might have a hard time finding the specific brand of petrol desired by you.
More so, these rewards are only available to cards that maintain above average credit. Therefore, it pays to keep your credit in check and pay your dues on time in order to redeem your rewards regularly. If you are confused about buying a credit card that offers the right kind of rewards to suits your needs, you may want to compare and check between multiple cards at https://www.gobear.com/sg/credit-card/rewards