Credit Cards

How Does Your Credit Card Work?

as soon as you use a credit card, you start earning reward points. whenever you swipe your card, the bank or credit card issuing company deposits a reward point in your account.

card variants- if you have a bank’s basic credit card, you earn 2 to 4 reward points on every purchase of rs 100 to rs 250. with premium or super premium card you can earn more reward points. a particular bank gives you more reward points when you spend on weekends. similarly, many banks give you additional reward points on the purchase of fuel from their credit cards.

co-branded card banks and card companies launch co-branded cards in collaboration with big brands, oil marketing companies, airlines or a particular e-commerce company. in this, you get up to 5 or 10 times more reward points than normal shopping. for example, when you buy air tickets of the same airlines with the help of a branded card with an airline, you get additional reward points.

the reward point sometimes depends on where you swiped the card. you may find more reward points when you eat in a restaurant or shop from a store than a card swiped to pay an electricity or telephone bill. this is because restaurants or shopping stores give incentives to customers to shop here under an agreement with the bank.

shopping on special occasions- in the festive season, many times banks take out special offers for a particular purchase. apart from cashback, you also get additional reward points when you make a purchase at this time. on christmas, diwali or dussehra, many banks tie up with e-commerce companies.

if you also want to get the most out of your credit card, go shopping to the same brand of store with which your credit card is contracted.

the thing to keep in mind is to pay your credit card bill on time and not to advance the loan on it by paying only the minimum amount. in this case, the credit card issuing bank charges you an interest of up to 40% per annum as interest.

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