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Rewards on your Credit Cards

While talking of rewards, there is more to it…

And we know you would like to know about it!

Credit cards come to your rescue when your bank account is empty and you have some emergency expenditure to boot. Nothing can be more depressing than borrowing from a friend or relative for meeting for this purpose. Not only this, a credit card is useful when you are on a vacation at some exotic locale and you run out of cash. In such a situation only a credit card can help.

There are certain cards which have exclusive tie-up with merchant establishments or even airlines under which reward points or even freebies are given. This is a way to encourage people to use credit cards. This trend is prevalent in Singapore where high-ticket rewards (cash backs) to the tune of 5% or more are granted.

American Express (Amex) cardholders get free desserts at some restaurants. This is good for Amex because they make more money from the transaction fees, it would also be good for the restaurant because a considerable number of Amex cardholders will go there and finally of for the cardholder, as you are getting a complimentary dessert. Thus win-win situation for all stakeholders.

Let’s look at some of the popular rewards given by banks to their cardholders:

• Cashback offers, in which you get back a small percentage (e.g. 5%) on everything you buy with the card.
• Welcome gifts, such as luggage carriers or movie tickets, just for applying for the card.
• Direct price discounts on movie tickets, dining, drinks amongst other things.
• Frequent flyer miles, in which your expenses contribute to “miles points” that can give you discounts on plane tickets, upgrade you to business class, and other benefits regarding travelling.

All this works well when you repay your debt on time implying on or before the due date. The late payment fee and interest accrued both are quite high which can make a serious dent in your finances besides negatively impacting your credit history.

This way full & timely payment are key to credit cards, to reap the rewards of cash back & freebies!

Best credit cards in Singapore