Bangalore: Although most of you make your payments using your credit cards, many do not have proper knowledge about the card usage. Billions of transactions are done every year using the credit cards which almost doubles the transaction amount done through debit cards. Yet many remain unaware about most of the facts which is important to know/ or to be aware of.

While hundreds of credit card users keep complaining of being charged unnecessary fees and interests, most of them also do not have any idea about how the reward points given on a credit card works and what are the things they should know.

Read on to know why you should beware of a credit card that earns reward points, reported by Rediff.

Every bank presents incentive programmes on credit card that helps you to earn back few portion of the money you spend using your credit card. Generally one point is rewarded on spending of every hundred rupees.

Most constancy programmes work by providing card holders reward points for paying bills on their card or spending using one or even saving account transactions. They name it as the card holders earn these points which can be redeemed while dining, shopping, travelling etc.

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