What Are Some Things That You May Not Know About Credit Card Rewards?

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Credit card rewards are one of the main reasons why credit cards are popular. Besides getting a credit on your card, you also get rewards for using the credit. Credit card rewards feel like winning a little lottery. Furthermore, if you use your credit rewards responsibly, it improves your credit score. You can always do a CIBIL score check free through a CIBIL score app.

Credit card rewards are always good to use. But there are many things you may need to learn about these rewards. Let’s delve into it!

The Types of Credit Card Rewards

There are primarily three types of credit card rewards. They are cashback rewards, rewards points, and travel rewards.

Cashback rewards

Some credit cards give rewards in the form of cashback. Cashback is a percentage of a transactional value returned to your card. For instance, when you make a purchase, a certain percentage of your payment is returned to your credit card account. This reward is known as cashback. The percentage of cashback may vary depending on the card and the transactional amount. The more you spend, the more rewards you get. This improves your CIBIL score. You can do a CIBIL score check free on a CIBIL score app.

Reward Points

Reward points are the most common type of credit card reward. Instead of giving cashback, some banks offer reward points. Earn reward points by making bonus promotions or purchasing products or services. However, reward points are offered only in select categories like dining, travel, etc. The reward points may vary depending on the card and the transactional amount. 

Therefore, once you have collected a certain number of reward points, you can redeem them. In exchange, you can opt for cash, discount vouchers, or gift vouchers. However, reward points expire after a specific time if not used. Also, some credit card companies may charge a small fee for reward points redemption. 

Travel Rewards

Travel rewards work the same way reward points do. But, instead of redeeming them for cash or vouchers, you can redeem travel rewards for air miles. Air miles come in use for people who use air travel frequently. Once you have a certain number of air miles, you can, in turn, redeem them to book flight tickets for free. Additionally, you can also use air miles to book hotels, etc. Travel credit card companies often offer these types of rewards. 

Things to Consider About Credit Card Rewards

While earning rewards releases dopamine in the brain and makes you instantly feel good, there are many things to consider while earning or redeeming credit card rewards. Some of them are listed below.

  • Build credit: Using your credit card to earn rewards can, in turn, help you build a good credit score. You can do a CIBIL score check free using a CIBIL score app. Therefore, paying your bills on time gets you a positive score. It tells banks that you are a safe and reliable candidate. 
  • Transfer Option: If you have some reward points in a credit card that you no longer use, you can get them transferred. Sometimes, people stop using credit cards due to high-interest rates. But, if there are any reward points on that card, you can get it moved on to any credit card that you are currently using. 
  • Balance: It is popularly believed that you can earn credit card rewards by paying only the minimum amount of your credit card balance. While this is not entirely false, it isn’t entirely true either. What you need to know is that while you may make a reward on a minimum balance, you end up paying more interest. Therefore, paying your credit card bills on time is always advisable. Additionally, it would be best if you regularly kept doing a CIBIL score check free using a CIBIL score app
  • Virtual cards: Instead of carrying wads of cash, you can carry your plastic money. Furthermore, you can use a virtual card instead of carrying your plastic money, which is your credit card. Virtual cards also get instant credit. You can also redeem your favourite rewards on select high-value purchases. 


There are a lot of types of credit cards available in the market. Different credit cards offer different rewards. Make sure you are aware of the expiration time of rewards. Also, do a CIBIL score check free regularly. You can use a CIBIL score app to check your credit score. Now that you know what to consider before building and using your credit card reward points, please make the most of it. For more interesting articles that help you make the best financial decisions, visit Wishfin. 

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