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What are the benefits of a credit card?

A credit card means you have a line of credit, which you can utilize in a form of a loan to purchase any products and services. But, other than this, a credit card offers many other facilities as rewards such as cashback, reward points, or miles. These are tactics of credit card companies to encourage users to use credit cards.

Cashback- Financial institutions offer cashback in the form of an increased credit limit to your credit account or directly to your bank account.

Reward points- You can even redeem your cash reward as a gift card with the credit card company’s partner stores. Like, if you use Bajaj Finserv RBL Bank SuperCard, you can get exciting EMI options and discounts on clothes, accessories, groceries, etc., at Bajaj Finserv partner stores.

Miles- Miles are travel reward cards, which can be redeemed to get lower airfare prices.

Reward point system is funded by the merchants as they pay the interchange fees to accept credit cards. This fee is usually 1-2% of every credit card transaction.


There are several factors that affect the number of reward points you get. Those are card variant, co-branded cards, the place where you spend, occasion of spending, etc.

Reward point system is funded by the merchants as they pay the interchange fees to accept credit cards. This fee is usually 1-2% of every credit card transaction.

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