What can be better than being rewarded handsomely for what you do? What if what you do is shop constantly? Enter the rewards credit card. Rewards cards help you earn points based on every RM1 you spend. Although all rewards cards work on the same principle, the value of the earned points is what sets apart one card from another.
What Features of a Rewards Card Should You Focus on
Finding the right rewards card can be difficult, especially when all cards work the same way. However, there are a couple of defining features that differentiate one rewards card from another.
If you’re looking for the best rewards card, here are some important features that you need to keep in mind before you start applying:
Reward points’ value
The first step to zeroing in on the right rewards card is to find what the value is of each reward point. Start off by checking what you can buy using the points or what products you can redeem it against. A redeemable voucher can be very useful in finding the value of such reward points. Next, you need to find out the number of points you’ll earn for each spend. This information is pretty easy to get as it most probably will be the defining feature of the rewards card.
Each rewards card comes with its own annual fees and charges. While some cards come with the provision of an annual fee waiver with a minimum spend, other cards come with the option of using the earned points to pay off the annual fee. Some cards may not have the option of an annual fee waiver at all. So, choose a card that offers to waive off the annual fee in one way or another.
It’s pretty obvious that the lower the interest rate is, the better it is for you. Some rewards cards come with a low interest rate only if you’re able to meet certain conditions, such as on-time payment. So, if you’re financially responsible and can manage to make your payments on time always, such cards can be a great option.
No matter how many reward points you earn, they’re just not any good when the redemption system isn’t flexible. Always pick a card with a varied redemption catalogue that includes products from multiple categories. Some rewards cards even come with the option of being able to use the earned points for purchases at participating merchant outlets.
While these are the defining features that you should focus on mainly when you need a rewards card, it would also help if you’re not distracted by any sign-up promotions alone. Most importantly, you need to remember that a rewards card is meant for those credit card users who wish to convert their spends into reward points that can redeemed for specific products, gifts, or even experiences.