Different Types of Credit Card Rewards

Posted on Monday, July 22nd, 2024 | By IndusInd Bank

Credit cards are more than a convenient payment method. They also provide various rewards that can enhance your financial benefits. 

Understanding the different types of credit card rewards can help you choose the ideal card for your lifestyle and maximise your earnings. 

This blog explores the most common types of credit card rewards, such as cashback, points, and miles. We also help determine which type is best suited for you. 

Types of Credit Card Rewards

Here are some common types of credit card rewards you may come across:

1. Cashback

With cashback cards, you earn a percentage of what you spend. It ranges between 1% and 5% and even more in some cases. The cashback percentage depends on the card and the spending category (e.g., groceries, dining, fuel, etc.).

For instance, the IndusInd Bank Samman Credit Card offers a 1% cashback on all retail spends up to ₹200 in every statement cycle. 

Advantages:

• Simplicity: Cashback rewards are easy to understand and redeem.
• Flexibility: Use the cash for any purpose, such as paying off your credit card bill or spending on other needs.

2. Points

Usually, rewards programs provide you with a certain number of points every time you spend a particular amount of money. One can redeem credit card reward points for various purchases, including merchandise, gift cards, travel, and more.

IndusInd Bank has a range of Credit Cards that offer 1-2.5 reward points for every ₹100-150 spent and more. For some cards, the reward points increase for spends during weekends.

Advantages:

• Versatility: Redeem credit card reward points for a wide range of products and services.
• Special Offers: Often come with bonus points for specific spends on certain categories.

3. Miles

Rewards programs allow you to earn travel miles for every transaction. You can redeem these miles for purchasing flight tickets, hotel stays, and other travel-related expenses. Such credit cards often come with additional perks like travel insurance, lounge access, and more.

IndusInd Bank offers a range of Credit Cards tailored for travellers, where you can enjoy domestic and international airport lounge access, travel insurance, airline loyalty programs, and more.

Advantages:

• Travel Perks: Access to exclusive travel benefits and privileges.
• High Value: Miles can offer significant value when redeemed for travel expenses.

4. Specialty Rewards

Some credit cards offer speciality rewards tailored to specific interests or brands.

For instance, the IndusInd Bank EazyDiner Credit Card offers a 12-month EazyDiner Prime membership, extra discounts, instant redemption of reward points against restaurant bills, and more.

Advantages:

• Tailored Benefits: Customised rewards that align with your spending preferences.
• Exclusive Offers: Access to unique deals and discounts in specific categories.

Also Read: How to Choose the Best Credit Card with Airport Lounge Access

What Type of Credit Card Rewards Are Suitable for You?

Here are some considerations to help you decide the best credit card reward for your needs:

• Analyse Your Spends

Review your monthly expenses to see where you spend the most. It will help you identify the type of rewards card that will offer the best benefits.

• Consider Your Preferences

Do you prefer straightforward cash rewards, or do you enjoy the flexibility of points? Are you a frequent traveller who can take advantage of miles and travel perks? Choose a credit card accordingly.

• Evaluate the Card’s Terms

Look at the credit card’s reward rate, annual fee, and other benefits or limitations. Some cards offer better rewards for certain categories. It can be beneficial if your spending aligns with those categories.

Conclusion

Knowing the various credit card rewards can enhance your financial planning and provide valuable benefits for your lifestyle. 

Whether you prefer cashback, points, miles, or speciality rewards, there’s an IndusInd Bank Credit Card for your needs. 

Discover the perfect credit card for your lifestyle. Apply for a Credit Card with IndusInd Bank now! 

Apply Now.

Disclaimer:

The information provided in this article is generic and for informational purposes only. It is not a substitute for specific advice in your circumstances. Hence, you are advised to consult your financial advisor before making any financial decision. IndusInd Bank Limited (IBL) does not influence the views of the author in any way. IBL and the author shall not be responsible for any direct/indirect loss or liability incurred by the reader for making any financial decisions based on the contents and information.