Credit Card Basic - Type of rewards

Bank encourage their customers to take their credit card product by giving rewards in different form. In this blog I am trying to go through all types of rewards which bank give to their customer directly or in form of discount.

Cashback : Cashback are one of best reward for your spending which bank can offer . Normally cashback are given with some upper limit . But in last couple of year we are seeing some good unlimited cashback card due to competition in banking domain to acquire maximum credit card users and their spending on their card .

Normally these cards comes in basic and mid range category which charge you from Rs 499 to Rs1000 annually and give overall average cashback of 3% to 4% for all your spends . Also as i mention in my earlier blog that basic credit card category has maximum users so this type of card is placed in right position .

Currently the max cashback we can get for our spending is 5% online and 2% offline , but as i mention we may see some better numbers in future . Also their are many tricks to get some higher reward in case of online spend in form of credit card cashback + online site membership reward or instant discount to get best benefit of cashback cards.

In case of cashback it get credited to your next credit card billing cycle and your required bill payment amount get adjusted . People you want simple card for their regular spend can go for this card , as no need to worry to redeem rewards points or track them .

Best cashback card :

1. SBI Cashback Card - Online spends

2. Axis Ace Credit card - Bill payments & offline spend.

3. Axis Airtel credit card - Bill payment & Airtel services.

4. HDFC Millennia card - Online spends.

Reward Points :

Every bank have their own loyalty program and give their reward point to customer for credit card usage. Reward points can be earned on regular spend , achieving milestone target and paying renewal fee. Some bank have reward multiplier program which will help you to earn reward point in faster rate if spend smartly through this program .

Once customer collect enough points then they can redeem their rewards on bank owned shopping catalog , gift vouchers , cashback , hotel or airline booking and transfer to some airline partners or hotel partners .

In case of reward point user can extract different value depending on the type of redemption option they are choosing . You will get minimum value for each reward point if redeem for cashback and average value for catalog shopping or gift voucher . Maximum value can be extracted in form of travel or hotel booking most of time .

Their is one more option where you can get best value of reward points if redeem with proper planning & calculation and that is airline & hotel transfer program . Not all type of credit card offer this option , currently premium & super super premium card have this option. If you have premium card then my suggestion will be always go for travel , hotel booking or transfer partner redemption option as they will serve you best value and create good memories in form of travel .

This is one of the best option which you can select if you are in traveling and know the trick & tips to maximum your rewards points. We will be discussing more on how to redeem reward point for best value in future blogs.

Best card where we can maximize reward point value :

1. American express card all variant

2. HDFC Infinia

3. Axis Magnus

4. Axis Atlas

5. HDFC Diners Black Credit card

Instant Discount :

This is one off the best reward you can get from all type of card from basic to super premium . It is mainly given by bank and merchant when they have a tie up to promote their sale and also bank want to increase per user spend on their credit card . Mainly this program will be ongoing through out the year on some product here and there, but mainly during festival season in india you will find more online & offline merchant who will tie up with some bank and provide instant discount on most of the item they sell . Instant discount can be availed with basic card of bank as well and this is the main reason why we should try to have basic LTF card of some famous bank who always take part in these sales . Mostly you will see instant discount from 10% to 20% depending on product and sale and getting this instant discount will make the product best value for money most of the time.

Also we are seeing lot of startup who want to acquire user and orders are doing tie up with most of the bank to promote their sale . And this way end user will get benefited if they have some of these basic cards .

Bank which mostly partner with online & offline merchant :

1. SBI Card

2. HDFC Bank

3. ICICI Bank

4. Axis Bank

5. One Card - FinTech

Air Miles & Hotel Loyalty program:

Some of the premium & super premium card have direct tie up with airline and hotel Business and they give direct airmiles or hotel loyalty points if user spend on these card . But in this case user has to spend those point in these program only and extract best value of it . If you are interest and know how to get best benefit then these cards will be trump card for you , If not then you need to plan your trip is such a way that you can use your point on these airline and hotel only .

There are other cards which give reward point and these points can be transferred to airmiles or hotel loyalty point through their transfer program. This is the solution to above issue where you need to stick to one airline or hotel program , now you can transfer to any airline or hotel program which is giving best value and fulfill your traveling need. If anybody is using this transfer program he need to understand these airline & hotel program in more detail to get best value of their hard earn reward points and he can extract Rs 0.60 to Rs 3.00 or more for there each reward point.

Premium & super premium card are the one which has transferred program and if you are interested in travel and luxury hotel program then you should try to have more of these cards and start collecting reward point to meet your goal . Collecting rewards take time so you need to have patient and plan to do this for your future travel . Don't try to spend extra which you can't pay just to collect rewards.

Airline co branded Card:

1. Axis Bank Vistara infinite

2. Axis Bank Vistara signature

3. SBI Vistara prime

Cards which has transfer partners:

1. Axis Magnus

2. Axis Atlas

3. HDFC infinia /HDFC Diners Black credit card

4. American express card all variant

Conclusion : Depending on user preference and their spending pattern they can go for cashback or reward points . If somebody is looking for simple to use card and don't want headache of redemption and reward point tracking then they can go for cashback cards without any second thought . If somebody is traveling enthusiast and ready to spend some time in gaining knowledge in this area then you can try travel oriented cards .

If somebody is only looking for instant discount in sale then they should go for LTF basic card or cashback card of most of the banks and don't worry of these reward points .

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