How Trends Are Shifting For Credit Card Rewards

The credit Card industry has been growing tremendously in India for the past couple of decades. There have been developments and innovations which help people get a variety of options to choose from. Credit Cards are mainly curated to give credit to the cardholders but this mainstream trend now has a mix of benefits and perks. These things make credit cards a great rewarding and excellent financial tool. In recent years, many different brands have collaborated with financial institutions to attract more customers and increase their financial reach to them.

There are always new trends coming in, some work their way to the top some are not just competent enough to waiver the heart and mind of the consumers. These shifts of trends have always been a part of the market where new and better ideas are given preferences over the ones which does not have the potential of being mainstream. But the journey of the credit card trend has not always been the easiest, to begin with. The best part is the reward out of all. These rewards are the reasons why people buy credit cards in the first place apart from having some extra decent amount for unforeseen future. In recent years the mainstream trend of credit card rewards has also been changing not drastically but the change is quite significant.


A New Era Of Credit Card Rewards

Due to these continuous changes over the past few years credit card rewards have been more versatile and become much more of value to regular, everyday spending and even big spends. This is something that not only a cardholder pleased but attracts more customers. The rewards of today’s credit cards are such big benefits for those who have not put much thought into the rewards themselves and even the credit cards themselves.

Co-branding of credit cards has also become a common practice and recently a lot of co-branded cards have become very popular among so. Talking about normal or general credit cards, AXIS Bank Magnus Credit Card is one of the most eye-catching credit cards out of all the credit cards launched in recent years. There are different types of rewards which are as follows –

1. Reward Points – Reward points are the most common type of reward among credit cards. The rewards get accrued when you spend a particular amount and every time you make the payment of that amount, you receive the reward points. How much rewards points on how much money is spent is determined by the bank but there are categories where you are also eligible for the accelerated reward points. These categories may or may not be present with each card and some cards even have higher reward rates.

2. Cashback – Cashback credit cards are quite new to the market. They provide you with cashback which is a percent of your total spent amount. This cashback gets automatically deducted from your credit card bill every month.

3. Air Miles and Hotel Points – Rewards in travel credit cards can be redeemed against the air miles which can help you get a lot of benefits such as can pay more than half the amount for your flight ticket. Hotel points will somewhat be able to cover a part of your expenses of staying at the hotel.

The rewards programs are becoming more excellent day by day since people are starting to use these for their purchases. Credit Cards can help in the smallest and biggest of your purchases but the rewards from these cards make it more understandable as you get to have a value back with them. While you spend your money in any other form like by debit card or by cash, you are not necessarily entitled to get any discount or offer for your shopping. Whereas with rewards being on the way, the more you spend, the more rewards you earn and credit card issuers are mostly in partnership with some brands with which you can get the best deals and offers. These brands can be different from bank to bank.

In simpler terms, rewards of credit cards have increased in numbers and the usage of the same has become more popular. In the beginning, the rewards were used to attract more customers but now the significance of rewards has become a more stick to reward the existing users.

Reward Redemption Flexibility

Be it normal credit card rewards or co-branded credit card rewards, the redemption of both these rewards can bring you a lot of pleasure and a sense of achievement somehow, at least for those who try to save a lot. These rewards can be redeemed against a variety of options depending on the type you have used to accumulate those rewards. The reward redemption is pretty flexible and is different for different credit cards. The general categories which the bank’s catalog usually has for reward redemption are –

1. Merchandise – It can be different brands from home appliances, kitchen appliances, electronics, phones, clothes, perfumes, watches, etc.

2. Vouchers – These vouchers include different brands which are partnered with the bank and you can redeem the points against these vouchers.

3. Air miles – With some credit cards, you also get the option of converting your RPs to Air miles which can be further redeemed against your airfare and other traveling expenses.

Also Read: How Do You Save Money Using Credit Card Rewards


Credit Cards Rewards first came into existence to attract more customers and increase the demand for credit cards. However, since the trend has gone through continuous change regarding rewards, it has become more than a way of attraction. The rewards are becoming more versatile than ever and there are always new credit cards in the market. Hence, the trends for credit card keeps on shifting from time to time to keep up with the ongoing consumer trends.

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