Majority of the credit cards give incentives for the money you spend on their card. Credit card rewards may come in different forms, but this will attract you to use your card more. Normally, you get points of rewards for every amount you charge on your card. Rewards may only depend on your purchases.
There are 3 categories of rewards
1. Cash rewards – are the most convenient to use. Usually, the bank will just deposit the rewards you’ve earned to your account.
2. Point rewards – are given based on every amount you spend with your card.
3. Miles – are rewards that you can redeem for airlines tickets and travel discounts.
You can decide on how to use your rewards. For example, cash rewards can be converted to points to reduce your credit card balance. Travel rewards can help you earn free tickets and will let you enjoy traveling for free. You can also use rewards for buying items and gifts for your loved ones.