Surprising but true, here is another reason for you to opt for a credit card, you can earn from it.
Credit cards are amongst the easiest way to have some extra credit money for your travel, shopping, entertainment and other expenses. Banks offer various kinds of credit cards with limits depending on your financial profile. Amongst numerous benefits, the cards also offer an opportunity for you to earn. Want to know how? Here it is:
1. Signup Bonus for your card
One of the easier ways to get some initial benefits out of your credit card is choosing a card that offers signup bonus. The bonus ranges from free travel to hotel stay and other shopping and entertainment benefits. The offers vary from bank to bank. Compare deals on credit cards on websites like bankbazaar.sg and choose ones with Signup bonus options.
2. Rewards
Banks provide certain reward points with every transaction you make. For example, if you spend X amount for your leisure activities, a certain percentage of your expense is converted into reward points. These points can then be redeemed against brands that are associated directly with the bank. Although these rewards don’t have an instant impact, consistency in your credit card usage will gather a greater number of reward point and payback in long term.
3. Cashback
Hotels, brands and more, there are certain associations of banks where if you use their credit cards you are rewarded with points that can be converted into cash. Unlike rewards, you can use the cashback to shop for any and everything. For more, when applying for a credit card always check for the cash back offers. Choose a bank that offers greater cashback and rewards with every transaction you do.
4. Travel Rewards
Not a direct earning, but you can travel for free with your credit card. If you opt for a travel credit card from any of the banks you become eligible for various travel benefits. You receive points for every ticket you book to a new destination. Once you successfully reach a certain threshold of points you could book your next ticket for free. Again, its paramount that you go through the offer documents carefully before choosing a credit card.
5. Earn from balance transfers
Get a cutoff on your credit card interest rates if you are regular at transferring funds from one credit card to the other. Check banks offer on balance transfers and opt for one that provides maximum offers with the same.
This and many more benefits of a credit card. Note that it’s important that you understand your requirement for a card. Choose one that will have maximum benefits. Example- If you are a sporadic shopper, choose a shopping card. Read all the regulations, terms and conditions attached with your card. Compare different cards on the basis of their interest rates, reward points and other long term benefits for prolonged benefits. Remember to maintain your credit score as well.
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