These days banks are showering credit card holders with rewards on their credit cards. But are these really rewards for the customers or is this just a way of making money for the banks. Well the truth is that card holders need to be aware that the rewards that you get on the credit cards are also charged for by the bank in some way or the other.

Some of the rewards are points rewards system; cash back rewards, air miles, freebies etc. Credit card rewards can be only beneficial if we use the rewards. The cash back rewards is the most universal. But in case of points system, there could be a time limit before which you need to redeem the points or there could be a minimum limit of points after which you are allowed to redeem, either ways it is not an advantage. Either you could end up losing points, due to expiry or you would end up spending huge amounts just to avail an offer, where there is no monetary benefit. Even in case of air miles, it would only be beneficial for those who travel a lot.

One first needs to consider how useful these credit card rewards are and avoid cards that cost more than they benefit.