Owning a credit card is the norm nowadays. These cards make your life easier while shopping or paying bills. You do not have to carry cash anymore, thereby making these card an undoubtedly safe choice. However, the normal credit cards are becoming outdated. The reward credit cards are the smarter choice now.
What is a reward credit card?
The reward credit card works just like any regular card but it has the added benefits of reward points and cashbacks. Every time you use your reward card, you will get points for spending money. You can make as much as millions of points every year and then redeem the points for some more shopping. These cards also offer you cashback on specific purchases, which practically works as discounts on what you are buying.
Different kinds of rewards credit cards
The reward credit cards can be divided into three categories. These include the following
- Accelerated rewards
There are reward cards that you can use for specific purposes only and they offer you reward points for every purchase. For example, if you are using a co-branded fuel credit card then you will get the benefit when you buy fuel. You can later use the points for the same purpose.
- Milestone rewards
These credit cards work just like how they sound. You get rewards for reaching certain milestones. The best part of it is not only the fact that you get huge reward points on reaching an expense milestone, but you also get to enjoy the fun of reaching the milestones by being a part of an elite league.
- Everyday rewards
This rewards credit card is perfect for the people who shop on a regular basis. The card offers you reward points every time you swipe the card. This means, whether you are buying groceries or paying for stuff online, you will get points as rewards.
Eligibility
Getting rewards credit cards is easy. You can apply for them online. All you have to do is check if you meet the expected eligibility criteria. They can actually vary from bank to bank. However, every card has some basic conditions.
- You will have to submit your bank statement that contains your credit information. It is to make sure that the bank knows you have a regular source of income.
- You need to be an adult to get a rewards credit card. The minimum age requirement is 18 years.
- A good Credit Score can always be helpful. You can check your current score online and if it is more than 750 then it becomes easier to get a rewards credit card.
Once you have your credit card delivered to you, start using it at the earliest to enjoy all the benefits.