What Types Of Rewards Are Available With Credit Cards?

Users of credit cards are rewarded for utilizing the credit card by:

  • Rewards points
  • Credit card fraud protection
  • Credit score info
  • Increased buying power

Each card has distinct rewards and structures, adding value to your wallet. Rewards credit card is for a different sort of expenditure. Consider your spending pattern and the card’s structure when picking a card. You may miss out on rewards and value if your card doesn’t match your purchasing patterns or lifestyle.

Here’s everything you need to know about credit card rewards, how they operate, and how to optimize benefits.

How Does The Cashback Program Work?

You get a tiny portion of your purchase back with a cashback credit card. The percentages vary between different cards.


Cashback is a simple credit card perk. On each qualified purchase, you’ll get cash back. An Rs100 transaction with a 2% cash back card would add Rs2. When you redeem your points, you might get a direct deposit.

Reward Points

Reward credit cards provide borrowers with a set quantity of points. Each issuer offers distinct incentives, conversion, and redemption rates.

Reward credit cards point system use points instead of Rupees. Because it’s a different unit, incentives are harder to calculate than cash back.

How you use your points affects their worth. You may redeem points for products, cash back, gift cards, vacations, concerts, and athletic events.

When redeeming points, the issuer usually has an internet gateway with options and values. Be smart while redeeming and select the best deal.

Options For Redemption

Your issuer’s website offers many options to redeem. Statement credits, direct bank deposits, items, and gift cards are frequent. Some issuers enable donations.

Before redeeming, verify with your issuer to be sure you’re getting the most significant value.


Airline credit cards that earn miles can be used for flights, seat upgrades, and airport lounge access. These cards earn miles for every Rupee spent and give bonus benefits on travel purchases.   Some cards let you transfer miles to the issuer’s travel partners, airlines and hotels.

What Is A Billing Cycle?

A billing cycle is a time between bills. Your billing cycle maybe 27-31 days, varying per issuer. Your credit card company compiles your statement after each monthly cycle; you have until the due date to pay.

When using a credit card, be mindful of its billing period. Financial planning requires knowing the credit card billing cycle. Once you know your credit card billing period, you can use it well. Your credit card bill will show all billing cycle transactions.

Billing Cycle

Here’s an example of a billing cycle. Say your credit card statement arrives every 4th. Your credit card billing cycle begins on the 5th of the month and ends on the 4th. During this time, all credit card transactions appear on your bill. This includes all credit card payments, cash withdrawals, and EMIs. 

How Does The Billing Cycle Work?

We’ll look at credit card billing periods. Card activation starts the billing cycle. Then your credit card balance is zero; however, it may contain any upfront fees. From then on, all credit card purchases are added to your statement. Charges for cash withdrawals are also added. Then credit card EMIs are applied. Other credit card charges are applied. Any money given back to your credit cards, such as a fuel fee waiver or reversal of a payment, is removed from the statement, and the final bill is created. Any post-billing-cycle transaction appears on the following bill. If you make a transaction on the 6th of the month, it won’t reflect until the next bill, giving you extra time to pay. 


Credit cards can be a great asset, but they require basic knowledge to ensure you’re getting the most benefit.  

If you think each rewards credit card may benefit you differently, consider getting multiple. You may match your most common purchases with a high-rewards card.

As per the bank policy reward points are always base on shopping and spending money through credit card. So, according to this there are many types of credit card in which some offers cashback, some offers surprise gifts and in some of these you can redeem in any of your bill payment. Apart from this you also can redeem reward points in your credit card bills or It will carry forward in your shopping bills.

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