Like any other product, credit cards provide a fine array of reward cards to pick from. So picking a few beneficial ones becomes essential. Because rewards based credit cards are designed to help you earn while you spend, you need to consider different factors than you would when choosing a regular card. Statements such as “make sure there is no annual fee” or “make sure your card is accepted everywhere” cannot be the primary basis for considering a certain rewards based card. Choosing a rewards based card is all about finding a card that will let you make the most of your spends.
Here’s a look at the four major types of rewards credit cards and how to choose which one is right for you.
Airline Miles Cards
The basic purpose of this card is to enable you to collectmiles (or points) based on the air tickets you buy with the card or on spends with certain partners. In time, once you have had enough trips you will be able to collect and then redeem points to use for your next free journey.
If you are a frequent traveller, or will be upon the purchase of the card then the miles will accumulate quickly allowing you to save a fair amount on air travel. Most Air Miles rewards cards have significant annual fees. Frequent flyers travel enough to be able to offset this fee and still collect enough points for a free flight. However, if you only travel once or twice a year then the card is not quite right for you. With only a few flights you would not be able to offset the annual of the card and would end up spending more than you save.
If you have your heart set on an Air Miles card and believe that it will prove to be the most beneficial for you then take a look at all the credit cards available in the UAE that offer this reward here.
Balance Transfer Cards
Credit card companies are quite aware of the rising percentage of people in debt in the current economic climate. Which is why balance transfer cards (which offer you a 0% APR for 6-12 months after transferring a balance) are very popular cards offered by the banks and credit card companies.
They help you buy some extra time for repayment and allow you to repay the bank at a lower rate of interest saving you money in the long run.
Choose a balance transfer card if you owe a significant amount of money to a bank and if you believe you can pay off a large portion of that amount within the stipulated duration at which time you can avail a lowered rate of interest. However if your debt is negligible and you have no strong reason to care for a lowered APR then this card will not be value for money for you.
Visit us for a range of balance transfer credit card options to choose from. Minimise your debt and make the smart choice by comparing your options and finding the perfect card.
Cash Back Cards
These cards can appeal to just about anyone. As the name implies, these cards reward you by refunding a certain percentage (usually around 2%) of all your spending. In simpler words,
If you spendAED 2,000 through your cash back card it will net you an amount of AED 40.
This option is perfect for people who use their credit for almost all expenses including paying utility bills, shopping and even for groceries. If you are only looking for a card for those emergency expenses or to allow you to make big ticket purchases with ease then this card is not right for you.
If you do fall in to the former category then take a look at the variety of cashback credit options in the UAE here before you decide.
Lifestyle Rewards Cards:
These cards provide you with a wide range of lifestyle offers. From allowing you to purchase cinema tickets at discounted prices to dining privileges at select restaurants these cards offer a breadth of options which makes them perfect for credit card users whose primary expenses are entertainment and lifestyle driven. It is also particularly advantageous for card owners with families and the deals offered allow you to minimise expenses considerably when you head out with the whole family. If you are someone who rarely feels the need for a night in the town then you may not be able to make the most of the rewards offered.
The most important factor, when considering a rewards based credit card is to focus intently on what each card can essentially offer you. By taking a careful look at your lifestyle and spending habits, you will be able to narrow down your options to the card that will allow you to maximise your rewards wisely.