JAKARTA - You know, why do many people like to use credit cards? Yup! Because credit cards have profits in the form of rewards and cashbacks. These two benefits are not owned by ATM cards. Not to mention that credit cards can also be used abroad, unlike ATM cards bearing the GPN symbol which can only be used in Indonesia.
But, what are cashbacks and credit card rewards and how to get them? Come on, look at the full details below.
Cashback is a credit card profit in the form of a discounted expenditure. For example, you use a credit card that offers a cashback of 5 percent for shopping at merchants A with a minimum expenditure of IDR 1,000,000. So, in every expenditure of IDR 1,000,000, you will get a discount of IDR 50,000, and your limit balance will be cut by IDR 950,000. Just like point rewards, the more and more you shop using the credit card, the more cashback you collect.
There are 3 types of cashback credit cards, namely:
1. Flat rate cashback. This type of credit card offers the same nominal and cashback percentage in each purchase. Honest Cards, for example, offer credit cards that are easily approved with cashback up to 1 percent for each purchase. So, if you shop for Rp. 1,000,000, then you have the opportunity to get a "return of the expenditure value" of Rp. 10,000 regardless of whatever the goods and services you buy.
2. Bonus cashback. In the cashback bonus system, you will get a larger amount of shopping if you shop for products and services in certain categories. For example, if you buy a plane ticket, you will get a cashback of 5 percent, but if you buy agroceries, the discount you get is only 1 percent.
This category of products that get high discounts also varies depending on bank policies. So, it is not certain that cashback for aircraft ticket purchases will be higher than the continuousgroceries.
3. Tiered cashback. Similar to cashback bonuses, tiered cashback offers larger amounts of deductions for the purchase of certain types of products. The difference is, if cashback bonuses only offer high deductions for 1 product, tiered cashback offers high deductions for several products at once. In addition, the cut value is generally less than 5 percent.
One of the benefits of cashback is that you don't have to be afraid that your profits will be burned, as a point reward. In addition, you can also get these benefits right after shopping. You can also record the benefits of cashback independently and then use them again to buy other products.
However, cashback promos cannot be used for several reward facilities, such as lounge exclusive at the airport or free annual dues. But, you don't have to worry. You can use the Honest credit card application, because this cash credit card offers cashback but doesn't use the annual contribution system.
You only need to pay a monthly administrative fee where this administrative fee also doesn't need to be paid if you don't use this card to shop for that month and or you don't have arrears in installments.
Cashback is a credit card facility that is suitable for those of you who want to use this banking facility for daily needs, although if you have collected a lot, it can also be used for more expensive facilities, such as plane tickets, discounts at hotels and so on.
Reward is a credit card facility that is usually in the form of points. The more often you shop using the card, the more reward points you can choose from. Well, you can then exchange these points into various forms, such as:
- Discounts of airplanes, hotels or restaurants;- Access to exclusive lounges at airports;- Merchandise credit cards;- Exchanged for annual credit card free.
However, the facilities you get, depending on the number of points collected. For example, if you have collected 10,000 new points, you can exchange them for free plane tickets or collect 5,000 points to get an annual fee free.
There are at least three shortcomings in credit card rewards. First, if they are not exchanged within a certain period of time, the reward students will be scorched. For example, you managed to collect 50,000 points in 2022. If during 2022 to 2025, these points are not exchanged either, then they will be scorched and cannot be used anymore.
The second shortfall in the reward system is that banks and partners can change the terms and conditions for the number of points you can exchange. For example, if 50,000 points in 2022 can be exchanged free of charge from Bali to Darwin, Australia, then you can only get the same ticket free if you have collected 60,000 points in 2025.
The third shortfall is to collect point rewards to then exchange it takes quite a long time. This is because the points you get at each purchase are only a few. Simply put, the advantages of credit cards in the form of rewards will be maximized if you travel frequently by plane or train or often shopping.
"Although cashback and credit card rewards present many benefits, make sure you use them wisely," yes!
The English, Chinese, Japanese, Arabic, and French versions are automatically generated by the AI. So there may still be inaccuracies in translating, please always see Indonesian as our main language. (system supported by DigitalSiber.id)
