Credit Card Reward Points: How to Earn Reward Points on Credit Cards?
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31 AUGUST, 2021

Most banks in India offer credit cards that come with a host of reward points that you can collect upon purchasing goods and services. The value of the reward points depends on the type of credit card and the purchase you make through your credit card. 

For instance, most banks offer at least five rewards points on every Rs. 150 spent online. You can redeem your earned credit card rewards points, at any point, for things, such as air miles, gift vouchers, etc. 

How to earn reward points on your credit card?

The method of earning credit card reward points differ from bank to bank. The reward points you earn depend on the type of credit card. For instance, you can earn higher points on high-priority credit cards than the basic ones. 

Here are the different schemes offered by issuing banks in India: 

  • Welcome Rewards

Some banks initiate you into their rewards programme by offering welcome reward points when you purchase their credit card. Customers can earn up to 1500 reward points, depending on the credit card issuer. Reward points are also offered for using the credit card within 90 days of its purchase. 

  • Regular Rewards

It is available on almost every credit card in India. It allows the customers to earn a set of reward points on every Rs. 100 spent on the edit card. It generally ranges between 1 to 5 reward points or more. 

  • Accelerated Rewards

Credit card issuers usually have tie-ups with select stores, restaurants, etc.  When you shop at their partner stores, restaurants, and other dining expenses, entertainment, and so on, they get to earn extra points. For instance, if you have a travel credit card, you can reward points on bus tickets, train tickets, or flight tickets. 

  • High-value Purchases

Using a credit card to make purchases that are high-value, such as gold jewellery, international travel bookings, and holidays can fetch more credit card reward points. 

  • International Rewards 

Most credit cards offer extra rewards points for making transactions on travels abroad. 

  • Bonus Points

Credit cards allow customers to earn bonus points for spending a certain amount. For instance, you can earn up to 5 reward points for every Rs. 100 spent. However, if you spend more than Rs.100,000/- on your credit card in a month, your reward points will double for every Rs. 100 spent. 

  • Loyalty points 

The credit card issuer offers more reward points for renewing the credit card every year. Loyalty to the credit card can fetch a significant sum of points. 

  • Supplementary Cards

Every issuing bank allows customers to get supplementary cards for their family members. The minimum age to obtain a supplementary credit card is 18 years, and the reward points earned through it will be credited to the main credit card. 


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Things to know before redeeming your reward points

There are several ways to redeem credit card reward points. It depends on the methods the credit card issuer offers. Before learning how to redeem the reward points, it is imperative to know the following points. 

  • Minimum reward points

To redeem the credit card reward points, customers will need to earn a minimum number of points to be eligible for redemption. Check the credit card issuer’s minimum reward point requirement before opting for it. 

  • Expiration Date

The credit card reward points have an expiration date within which you will have to redeem them. The expiration date generally ranges between 2 to 3 years. So, check your reward points regularly and ensure to redeem them on time. 

  • Redeem fee 

Issuing banks usually charge a nominal fee for redeeming the reward points. You will have to pay approximately Rs. 100 for redeeming reward points.

You can redeem your reward points for gift vouchers, air miles, etc. The method of converting your reward points into gift vouchers is easy and hassle-free. 

How to Redeem Credit Card Reward Points?

  • Internet banking

Customers can use internet banking to redeem reward points. They will need to log into their account with their username and password. Through internet banking, customers can pay credit card bills, view credit card statement, and redeem credit card reward points. 

There are several options you can choose to redeem your credit cards reward points, such as vouchers, merchandise, or cash credit. After selecting the reward, place your order, and the gift will be couriered to your address within ten working days. 

  • Customer Care 

Another way to redeem reward points is through customer care of your issuing bank. Your bank’s customer representative will update you on the reward points balance and the process of redemption. Upon request, the representative will place an order based on points earned. 

  • Post

Customers will need to visit a nearby bank branch to get the rewards redemption form. Fill in the application form and courier it to the bank’s credit card division. It generally takes about 10 working days for the reward to be shipped to the registered address. The reward points will then be reduced from the reward accounts. 


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  • Partner-store 

The issuing bank may offer an opportunity to shop at their partner stores with their credit card reward points. The balance amount, if any, will be charged to the customer’s credit card.

So, choose a credit card that suits your lifestyle and enjoy multiple benefits by availing easy reward points.

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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.