How to earn and redeem Credit Card Points

18 MAY, 2023

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.

How Can You Earn 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.
• Enhanced Points – You can earn additional reward points by making purchases in specific categories, such as dining at partner restaurants, shopping at partner stores, and entertainment expenses.
• High-Value Transactions – Making expensive purchases or booking costly travel can earn you more reward points. These points are credited to your account after the purchase is made.
• International Rewards – Some credit cards offer extra reward points for using them to make purchases while travelling overseas. These points are credited to your account after the purchase is completed.

How to Redeem Credit Card Reward Points?

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.
• Voucher Rewards – You can redeem your reward points for e-vouchers of famous brands, merchants, or restaurants. These vouchers can be used to purchase or get discounts on products or services.
• Airline Miles – Some credit cards offer the option to earn air miles directly instead of reward points. Others allow you to convert your accumulated points into air miles. These miles can be redeemed for air ticket purchases or to avail discounts on air travel.

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

Credit Card Reward Point Benefits

Cash Conversion: Certain banks or credit card companies provide the option to convert credit card reward points into cash. This allows cardholders to receive cash credit for their accumulated points.

Travel Bookings: Some credit card issuers enable cardholders to use their reward points to make hotel or travel bookings. These bookings may include flights, hotels, car rentals, or other travel-related expenses.

Cashback Redemption: Another option for reward point redemption is cashback. Cardholders can use their reward points to receive cashback on their credit card spending.

How does Credit Card Reward Points Work?

Every time you purchase with your credit card, banks may offer you reward points as a benefit. As you continue to spend on your card, you can accumulate these points over time. Once you have earned enough points and know how can I redeem my credit card points, you can use them to redeem various rewards, such as gift vouchers, merchandise, airline miles, and more.

How to Maximise the Reward Points on Credit Card?

To maximize the value of your credit card reward points, you should first know how to redeem credit card reward points. There are several strategies you can adopt to maximize the reward points on credit cards:

• One is to take advantage of the welcome bonuses many banks offer, which can provide bonus points when you use your credit card within the first few months of opening the account.
• Another strategy is to be aware of limited-period offers available during festival seasons or other special occasions, where you can earn more points for your purchases.
• One should ensure how to redeem credit card points and utilize the reward points before expiration, which can be easily tracked and redeemed through the bank's dedicated portal or app.

Also Read: Cashback vs Reward Points in Credit Cards

Frequently Asked Questions: How to Redeem Credit Card Reward Points

Q1. How Can I Redeem My Credit Card Points Online?

A.Redeeming your reward points online is an easy and hassle-free way to redeem your rewards without calling the bank's customer care department. Many banks offer home delivery for products purchased online using reward points, making it even more convenient. In addition, you can also convert these points into air miles that can be used to purchase air tickets, making it an excellent option for frequent flyers.

Q2. Can the Reward Points be Convert to Cashback Points?

A.Credit card issuers typically offer multiple options for redeeming reward points, including cashback, gift vouchers, merchandise, and even charitable donations. In addition to online redemption, many credit card companies also have a catalog or rewards portal that allows cardholders to browse and select specific products or services they want to redeem their points for. It is essential to understand how to redeem credit card reward points before taking any step.

Q3. What are the various options to Utilize your Reward Points?

• Cash back: Many credit card companies allow you to redeem your points for cashback. You can receive a statement credit or a direct deposit into your bank account.

• Gift cards: You can also use your reward points to purchase gift cards from various retailers, restaurants, and other businesses.

• Merchandise: Some credit card companies offer a merchandise catalog, where you can use your points to purchase items like electronics, home goods, and more.

Q4. How to use reward points to pay credit card bills?

A. It is crucial to determine the worth of your redeem credit card points before using them for any payment. Knowing the cash value of your points can assist you in effectively reducing your outstanding balance. Therefore, before redeeming your reward points, it is wise to check the credit card company's reward point system to determine the value of each point.