If you’re paying cash or using your debit card, you’re basically paying for my points.
Last month, I made a plan to visit Hampi with my friends who were based out of Bangalore. So I had to plan a round trip from Mumbai(BOM) to Bangalore(BLR). Now booking flights at the last moment is almost same as burning a hole in your pocket. The round trip cost was coming upto Rs 23,000 (350 USD). But instead, I got my round trip flights for Rs 2000 (30 USD). For 30 USD I got one Economy(BOM-BLR), one Business(BLR-DEL) and one Premium Economy(DEL-BOM) tickets.
So I got all these flights basically for free. And I did it using credit card rewards and airline miles. Banks promise offers like cashback, bonus miles, and cash bonuses to get you to sign up and spend. And it’s rewards like these that people like us have to become masters at maximizing. Ultimately though, someone is paying for these credit card rewards. And there’s a hidden battle going on over their future.