How to earn and redeem Credit Card Points

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22 MAY, 2020

Cashless transactions have become extremely popular in today’s time. There are several ways to undertake this form of payment and credit cards are one of the most popular options. It has aided in considerably bringing ease of payment in all walks of life. Additionally, you enjoy a slew of benefits that can help you save money and promote good financial growth.

It is essential to know how to use a credit card smartly to reap the maximum benefits that come along with it. Credit Card issuers usually offer reward programs and you can use these to earn rewards and redeem your credit card points for a variety of perks and benefits.

Pick a suitable credit card – The first step is to pick a credit card that compliments your lifestyle. If you are a frequent traveler, then you should get a credit card that lets you redeem your points on hotel stays, flight tickets and more. On the other hand, a card that offers rewards on certain shopping categories such as apparel and groceries is a good pick for a frequent shopper.

Here are some ways to through which you can earn credit card reward points:

When using a credit card, use it responsibly by making monthly spends within the limit. Albeit, do not spend beyond your means just to earn reward points.

  • Initial bonuses – A majority of credit cards come with an initial bonus of rewards points when you first sign up. However, these reward points are usually deposited when you make a first purchase or upon spending a certain amount of money within a given duration.
  • Daily purchases – Using a credit card for daily spends is a good way to earn reward points. Making certain types of purchases which will give you extra points in comparison with other kinds of purchases.


The typical ways through which you can redeem your credit card points include:

  • Cash backs – You can avail cash backs by trading your available reward points. This may be transferred into your statement credit.
  • Merchandise shopping – Credit card issuers may have collaborations with brands. The points can be spent when shopping from these brands in stores or online.
  • Loyalty programs – You may also enjoy the benefit of being able to transfer your earned reward points to any loyalty programs on offer. This can include loyalty programs from restaurants, hotels or airlines. The value availed through this redemption may be higher.


It is your lifestyle habits that will help determine if earning credit card points bring value to you. Be well aware of all the limitations that come attached with it. Keep a close note on all the terms and conditions to prevent any discrepancies when using one.

Read more about the best credit card benefits you can avail here.

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Disclaimer: This Article is for information purpose only. The views expressed in this Article do not necessarily constitute the views of Kotak Mahindra Bank Ltd. (“Bank”) or its employees. Bank make no warranty of any kind with respect to the completeness or accuracy of the material and articles contained in this Newsletter. The information contained in this Article is sourced from empaneled external experts for the benefit of the customers and it does not constitute legal advice from Kotak. Kotak, its directors, employees and the contributors shall not be responsible or liable for any damage or loss resulting from or arising due to reliance on or use of any information contained herein.

Disclaimer: This Article is for information purposes only. The views expressed in this Article do not necessarily constitute the views of Kotak Mahindra Bank Ltd. (“Bank”) or its employees. The Bank makes no warranty of any kind with respect to the completeness or accuracy of the material and articles contained in this Article. The information contained in this Article is sourced from empaneled external experts for the benefit of the customers and it does not constitute legal advice from the Bank. The Bank, its directors, employees and the contributors shall not be responsible or liable for any damage or loss resulting from or arising due to reliance on or use of any information contained herein. Tax laws are subject to amendment from time to time. The above information is for general understanding and reference. This is not legal advice or tax advice, and users are advised to consult their tax advisors before making any decision or taking any action.