There are hundreds of different types of reward points/miles programs. Some would let you earn points through shopping while others would when you travel. The benefits you get may vary depending on the provider of the reward points program. Normally, the rewards are given out to the customers in four different forms: cash back rewards, travel rewards, shopping rewards, and free points/miles.
Cash Back Rewards
You would get cash back rewards as bonuses when you do shopping with your credit card. Whether you get cash back or points on shopping depends on your credit card provider. The more you use the credit card for your shopping, the more the cash back rewards will be.
Cash Back Or Reward Points?
Recently, some credit card providers have started to provide their customers with the freedom to choose between cash back and reward points over shopping. If it is the rewards that look more appealing to you, you can choose to accumulate your rewards. However, it is very important to keep a close eye on your rewards and their validity. You are expected to utilize them before they expire.
There are a variety of options to utilize your reward points. You can use them when booking airline tickets or for online shopping. It is also possible to sell your points for cash. But you should do it with the help of a reliable agent.
If you cannot keep track of your reward points or if you find the entire process complicated, go for the cash back option, as it is easier to handle. However, note that cash back benefits are not equal to reward points. Often, it is lesser than the latter.
Well, although the reward points are more valuable than cash back benefits, there are some risks associated with them. The most common challenge that most people face with them is their validity. Often, people fail to keep track of their validity. When they go for redeeming the points, they may see that the points have already expired.
Reward based credit cards are available now for all age groups, but each reward system has its own rules. Hence, it is quite important to understand the underlying rules first before picking one.