6 Key Factors to Take Into Account When Choosing a Rewards Credit Card
Credit cards have become a popular payment option in the Philippines, offering a convenient and secure way to manage transactions. With various types of credit cards available, including those designed for specific needs such as shopping, travel, dining, or general spending, it’s important to understand the different options. Among these, rewards credit cards stand out by providing additional benefits beyond basic financial transactions.
Rewards credit cards differ from standard credit cards in that they allow cardholders to earn and use rewards based on their spending. They offer incentives such as cashbacks, credit card points, or miles for purchases, which can be redeemed for various rewards or benefits. If you want to ensure you effectively benefit from these rewards, it’s important to choose the right rewards credit cards.
In this article, we’ll explore the key factors to consider when selecting a rewards credit card so you can make an informed decision that will fit your needs and preferences.
1. Rewards and Benefits That the Credit Card Offer
One of the primary reasons people choose rewards credit cards is the benefits they offer. But keep in mind that these benefits can come in various forms, such as cashback, points, miles, or lifestyle perks. When selecting a card, consider what type of rewards align with your spending habits and preferences. Also, assess how easy it is to accumulate rewards based on your usual spending patterns and how these benefits can fit into your lifestyle. For instance, if you frequently dine out or travel, a card that offers dining rewards or travel miles would be ideal.
Additionally, since grocery shopping is a significant monthly expense, consider rewards credit cards that cater specifically to this. In the case of the Landers Cashback Everywhere Credit Card by Maya, it’s a kind of cashback credit card that offers up to 5% cashback on all Landers purchases. This allows you to earn rewards on essential everyday spending. This Maya credit card also lets you earn 2% cashback on all dining spends and 1% cashback on other transactions*.
2. Redemption Process
Another key factor to consider when choosing a credit card is how easily you can redeem the credit card rewards. Different credit cards have different redemption processes. Some allow online redemption, while others require you to visit a partner store or use a specific platform. It’s crucial to choose a card with a straightforward redemption process that fits your lifestyle.
For cashback rewards credit cards, the redemption process is often straightforward. Some cards automatically apply cashback to your credit card statement, reducing your outstanding balance. Others may require you to request the cashback online or through the bank’s mobile app.
Additionally, some cards offer the flexibility to convert cashback points into vouchers, which can be used at partner stores or online merchants. The Landers Cashback Everywhere Credit Card, for example, vouchers are automatically unlocked once you earn enough cashback points from qualified transactions using your credit card. You'll receive a notification when you unlock a cashback voucher. These are vouchers that you can use to shop for groceries and other household essentials in any Landers branch.
3. Application Process
The application process is another important factor you must consider when choosing a rewards credit card. Each bank or issuer has its own set of requirements and eligibility criteria. For the Landers Cashback Everywhere Credit Card, however, the requirements are very simple. You will only be required to have a Landers membership, be 21 years of age at the time of application, be a Philippine resident, and have a regular monthly income.
The application process is also straightforward and high-tech. You can apply for this Maya credit card in minutes right on the Maya app, which means you don’t have to visit a physical bank branch. Just make sure you own an upgraded Maya account. You can upgrade for free and you’ll only need to present 1-2 valid IDs. After you’re done completing the process, your card application will be subject to evaluation.
4. Fees and Interest Rates
While rewards and benefits are appealing, it’s also essential to consider the costs associated with the credit cards. Having said that, look out for annual fees, foreign transaction fees, late payment charges, and other potential costs. These fees can add up and outweigh the rewards earned if not managed properly. Fortunately, the Landers Cashback Everywhere Credit Card doesn’t currently require an annual fee.
Furthermore, compare the interest rates of different cards, especially if you plan to carry a balance. It’s crucial to understand the cost-benefit balance between fees, interest rates, and rewards to ensure you make an informed decision.
5. Spending Habits and Credit Limit
Your spending habits also play a significant role in determining which rewards credit card is right for you. As mentioned previously, some cards offer higher rewards for specific categories such as groceries and dining. As such make sure to choose a card that aligns best with your spending patterns. Take note that with the Landers Cashback Everywhere Credit Card, you can assign daily spending limits to different types of credit card transactions on the Maya app, including your daily spending limit, foreign transactions, online payments, contactless payments, and cash advances (up to 30% of your assigned credit limit.
Additionally, consider the credit limit offered by the card. A credit limit that matches your monthly expenses can help you maximize rewards without overspending. Remember, spending beyond your means can lead to high-interest charges that could negate any rewards or benefits you might get from your rewards credit card.
6. Special Promotions and Offers
Many credit card companies attract new customers with special promotions or sign-up bonuses. These may include waived fees for the first year, bonus points, or enhanced cashback rates for a limited time. While these promotions can offer great value, assess their long-term benefits.
In the case of the Landers Cashback Everywhere Credit Card by Maya, it can also serve as your Landers membership card. This means you can enjoy exclusive access to premium finds, superb dining, and other special perks at Landers.
Choosing the right rewards credit card involves carefully considering several factors, some of which are discussed in this article. It’s also critical to do your research and assess your credit card options. From here, you can find a card that aligns with your financial goals and lifestyle needs. Remember, the best rewards credit card is one that offers attractive benefits as well as provides value and convenience for your everyday spending.
*Transactions that don’t qualify include: cash in, cash advance, quasi cash purchases, casinos and gambling, fuel, supermarket, pharmaceuticals, utilities, telco, and government.
