Smart Tips To Use Credit Card Reward Points

Smart Tips To Use Credit Card Reward Points

The whole idea of credit cards has been introduced by the banks in order to encourage you to use more and more credit cards. Today, every bank is offering a credit card and some banks are even offering 8-10 credit cards for their customers. All these credit cards accompany their own reward point programs allowing you to earn points on the purchases you make using your credit card. Once you have accrued a set number of points, according to the Rewards Program, you have the facility to redeem all your points for various benefits such as vouchers, cash back, air miles and lots more.

If you are new to the credit card world, then knowing about the reward points, how you can earn them, and then later how you can use them can only prove beneficial for you. So, here are some smart tips to use credit card reward points.

About Reward Points

In layman terms, reward points can be defined as points which you get to collect whenever you make a purchase using your credit card. Whenever you swipe your credit card to make a purchase, your bank will offer you reward points. The points you get to earn may vary between different banks, such as you may earn 1 point for every Rs. 100 or Rs. 50 spent using your credit card. The points you earn for a specific amount spent also depend on co-branding wherein your bank has a tie-up with some retailer or merchant, you may get a chance of earning additional points when you use your credit card for spending at their store.

Things To Know

While reward points are easy to accumulate, there are certain things you should be aware of. It can, surely, be an arduous task when you have to calculate your spending and your reward points. There are chances that the product you have selected might be lesser in the stores and higher when you pay for it using reward points. Since the nature of these points seems like freebies, you might not take the pain of figuring it out. So, to make the most of your reward points, there are some things you need to remember –

1. You should be aware that the reward points have an expiry date. Make sure you have redeemed your reward points before they expire.

2. Make sure you make your credit card payments on time so that you don’t have to pay for the delayed payment fee or interest on your credit card. In addition, this will also make your reward points worth the value.

3. It won’t be wrong to say the reward points as bonus perks on your card. So, make sure you are not making purchases just to accumulate the points.

Using Credit Card Reward Points

Once you have accumulated adequate reward points, you can redeem the points in exchange for a wide array of options offered by your bank. Today, every bank is offering a wide variety of options as far as reward points are concerned. Bank realizes that not every cardholder will be using their card to make high-value purchases, owing to this, the banks offer reward points for small value purchases as well.

The points you earn for a specific amount spent also depend on co-branding wherein your bank has a tie-up with some retailer or merchant, ticket booking companies or airlines, you may get a chance of earning additional points when you use your credit card for spending at their store or booking tickets. Entirely depending on what your bank is offering, you can use reward points in the following ways –


Most of the banks offer vouchers as one of the ways to redeem the reward points. You can redeem the reward points at all those stores which your bank might be having an association with. At times, your bank will also let you avail these vouchers for online purchases with selected retailers.


Cashback is another type of redemption of reward points. Here, instead of getting reward points, you will get back a certain amount of your purchase back as cash back.


Banks also offer the facility of converting your reward points to cash. The converted amount is credited to your account and you can use that money to make payments. You can also use this money to pay off any outstanding balance on your credit card. Conversion to cash can really prove handy for you as you get to save the money that you’d otherwise have to spend paying your credit card bill.


If you travel a lot then this can be a great option for you. Most of the banks have collaboration with different travel booking portals or airlines to offer you with the best travel-related rewards. While in some cases, you also get to earn reward points directly from the purchases you make using your credit card or you can also convert your reward points to air miles.


You are also offered a catalog, by your bank, having products which you can exchange instead of reward points. These products can be footwear, clothing, accessories, movie tickets, salon services, etc.

Other options

There are various other options offered by the banks as a part of their reward point scheme. You also have the provision of exchanging your reward points in exchange of hotel bookings, travel bookings, etc. In the case your bank has a tie-up with a store, you can redeem your reward points at that store.


1 Comment on "Smart Tips To Use Credit Card Reward Points"

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Jason J

Earning reward points is tough, if you are a regular CC user and make use of CC for all your transaction. Then reward points will accumulate nicely. Else you will find it difficult. I say this because i use an Indian Oil Card