A Practical Guide to Reaping Credit Card Rewards

by Joumana Saad | Feb 17, 2020 - CREDIT CARDS

With so many types of credit cards available in the UAE, many of them allow customers to earn rewards. The key to maximizing the benefits of such programs is to fully understand the value that they offer.

A 2018 study from eMarketer found that only 30% of shoppers are aware of exactly how many points and rewards they earn from loyalty programs, while 52% of respondents are unsure of what they had earned.

Choose the best Credit Card that suits your needs

There is no shortage of loyalty credit cards that appeal to customers who enjoy high-end experiences and perks. Many luxury credit cards encourage customers to spend by making it easy for them to redeem their points on hotels, restaurants, leisure, and entertainment attractions that fall under a company brand.

There are different loyalty cards available in the UAE, each with offerings such as travel miles, daily deals, cashback, or points that can be used for store purchases and credit card payments.

For those who want to enjoy Luxury Lifestyle and Travel Perks

If you are an avid traveler or frequently embark on business trips, a credit card offering lifestyle and travel rewards can be an exceptional choice. For instance, the Emirates - Citibank Ultima Credit Card offers you exclusive travel and lifestyle benefits to cater to your wanderlust. This co-branded card provides you Skyward Miles on your AED and non-AED travel expenses along with bonus reward points upon signing up and paying its annual fees. Here are some other enticing benefits offered by this premium metal card:

Unlimited complimentary access to the finest golf courses in the UAE on weekdays and once a month on weekends.
Complimentary Emirates Skywards Silver membership for exclusive traveling privileges like extra baggage and priority check-ins.
Complimentary unlimited access to more than 1,100 airport lounges globally for cardholders and supplementary cardholders, and one additional guest each per visit.

For World Travelers

Citi credit cards open a world of exclusivity, especially if you are a frequent traveler. For instance, the Citi Prestige Card offers travel rewards and privileges you can enjoy globally. With this credit card, you can get which can be redeemed for exciting offers while booking flight tickets, hotels, holiday packages, and rental cars. Accumulated ThankYou points can be transferred to various participating partner airlines to redeem for flight and hotel stays. Additionally, you have the flexibility to redeem reward points in numerous ways, like cash rebates, merchandise, or for travel-related spending. Some other benefits of this card include:

ThankYou Points on both AED and non-AED spending.
Complimentary access to international airport lounges for you and your supplementary card members and one additional guest each per visit.
Complimentary one-night stay at hotels and staycations worldwide with a minimum booking of 4 consecutive nights.

For those who want it all

Cashback credit cards have become popular as they promise cardholders a pre-specified monetary return on everyday purchases. If you use credit cards frequently for retail or supermarket shopping, Citi Cashback Credit Card is an ideal choice. The cashback you accrue are automatically credited to your account which you can use later to make purchases without exhausting your credit limit. Here are some additional benefits of the Citi Cashback Credit Card:

Get 3 percent cashback on non-AED spending, 2 percent cashback on grocery or supermarket spending and 1 percent cashback on all other spends.
No minimum spending requirement.
All retail purchases are eligible for cashback except utility bill payments via Citibank online, mobile, or phone channels.
No monthly cashback cap.
No annual fee in the 1st year; however, from the 2nd year onwards, the annual fee is waived if you reach the minimum spending requirement.

Things to Consider Before you Sign Up for a Credit Card

Minimum Spend and Supplementary Card

When it comes to loyalty programs linked to credit cards, less is more. Signing up for several cards or programs simply for the perks may not be the best idea as cardholders are usually required to spend a certain amount per month to access rewards.

One easy way to meet the minimum spend amount is to get supplementary cards for your family members. By doing this, you can earn more points on purchases and spread the benefits to your loved ones. Most banks do not charge for supplementary cards.

However, these cards are usually only issued to blood relatives. Bear in mind that as the primary cardholder, it is your responsibility to set spending limits on supplementary credit cards and settle the bills each month.

Rewards and Benefits

One important question to ask yourself before committing to a new card is what kinds of rewards and benefits offer the most value to you. Once you narrow down this list, you can get a better idea of which type of card is most suitable for your lifestyle.

Fine Print

Remember to read all the fine print before signing up so that you are clear about all the terms and conditions that apply to the credit card or loyalty card you are committing yourself to. That way, you can avoid disappointment or any unwanted surprises down the road.

Credit card and loyalty rewards programs offer a great value proposition for consumers. After all, you are spending money anyways, so why not earn something extra and put those points to good use?

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Joumana Saad is an American freelance journalist and media personality based in Dubai. She writes about financial, media and technology news and topics.

This article is intended to provide general information about finance and investments and does not replace or should be taken as professional financial advice. The content reflects the view of the author of the article and does not necessarily reflect the views of Citi or its employees, and we do not guarantee the accuracy or completeness of the information presented in the article except information on Citibank N.A. – UAE products referenced herein.