How Rewards System Work In Credit Cards?

HOW REWARDS SYSTEM WORK in a credit card?

A reward point is a perk offered by banks to credit card holders as a reward for every time they spend on their credit cards. Once you have collected enough points, you can redeem them for gift vouchers, merchandise, air miles, and more. What is a Reward System?

During the great recession in 2011, financial giants went in huge loss with their traditional sources of income. Emergence of Reward System

banks started focusing on ways to compensate for their losses. they started marketing credit cards more aggressively than ever before. earn on interest

To attract more customers, banks introduced the rewards system. loyalty points

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1. gaining more customers 2. making more profits 3. analyzing customer data to offer relevant deals benefits of rewards system for banks

1. rewards are only for specific payments. 2. entire reward points cannot be redeemed in a single transaction. 3. redemption fee to be paid for rewards. 4. points can only be redeemed after reaching a minimum limit. 5. results in a low credit score in case the loan payment is not made on time. limitations of rewards systems

which reward is right for you? 1. offers deals on diners and food apps 2. offers zero liability on stolen cards 3. No-cost EMI options 4. Offers on bill payments 5. more cashback choose a card that suits your need

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