Use a credit card for shopping? These cards can be rewarding


Use a credit card for shopping? These cards can be rewarding

New Delhi: Credit cards have been extremely popular among the urban population in recent years. Nowadays, several companies, lenders, offer co-branded credit cards that reward online shoppers or shoppers in general. Credit cards aimed at rewarding users for their purchases are popular. There are several co-branded cards that particularly reward those who shop online.

These cards are a unique way for the card issuer as well as the affiliate merchant to reward their loyal customers. Cards, while being a reward, further deepen the frequency of engagement, creating a win for all. They offer free merchandise to customers for spending over specific amounts or redemption options as well as a loyalty program or frequent shopper program.

Since co-branded credit cards are associated with a particular brand, customers can benefit from personalized cards based on their spending category and lifestyle requirements. Most co-branded credit cards have no transaction fees and also offer surcharge waivers for customers.

You receive the highest rewards, on purchases you make directly from the affiliate merchant. Therefore, in order to take full advantage of the rewards available, opt for a card from a brand that you know you will transact regularly with, for example, the IndianOil Citi credit card which offers fuel benefits.

For example, the Amazon Pay ICICI Bank credit card is the fastest to cross $ 1 million in less than 20 months after launch, according to the company. These purchase-driven cards offer several benefits to customers, ranging from zero-cost IMEs, exclusive discounts to fee waivers.

In fact, most issuers waive the fee if a customer spends the specified amount. For example, for HDFC Millennia and SBI SimplyCLICK cards, renewal fees are waived if customer spends Rs 1 lakh. For the Flipkart-Axis card, there is no annual fee if the customer spends Rs 2 lakh or more. For the Citi Rewards card, the limit is Rs 30,000 each year.

Unlike other financial products, credit card interest rates are calculated on an annual basis. The annual percentage rate or APR indicates the interest you pay for the transaction through your credit card. Simply put, these are fees that you pay to your credit card issuer for extending the credit period.

Interest rates or annual percentage rate (APR) are generally above 40%. The Flipkart-Axis credit card has the highest APR at 49.36% while the Amazon-ICICI Bank APR is between 42% and 46%. The APR on Citi Rewards is 45%.

Another advantage of these cards is for those who buy a lot, especially with the partner brand. For example, HDFC Millenia offers Rs 1,000 points when you pay the membership fee. In addition, there is no annual fee if the user spends Rs 30,000 in the first 90 days after taking the card.

In the first year, the lender offers gift certificates worth Rs 1000 if the user spends Rs 1 lakh every quarter. In addition, there is 5% cash back on specified online transactions, eight free access to national lounges each year, and a 1% fuel surcharge waiver, among other perks.

The Flipkart-Axis card offers activation benefits of Rs 2,900. In addition to 5% cashback on Flipkart, Myntra and 2GUD, there is 4% cashback on preferred partners like Swiggy and Uber. There are also four free tours of national shows. Citi offers 1,500 bonus points on the first spend made within 30 days of card issuance and 10 times the reward points for purchases in a clothing store or story, both physical and online.


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