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Credit Card Reward Points – How to Earn & Redeem?

Credit Card Reward Points – How to Earn & Redeem?

Credit card reward points are popular among customers who use credit cards. You can redeem points and rewards for several types of incentives like flight discounts, cashback, gift cards, etc. Credit card points are a valuable tool for anyone searching to make the most of their spending. However, redeeming these points can be confusing if you are a beginner.

Credit cards offered by NBFCs and banks come with their own reward points programs. As a customer, you can earn points by making payments with a credit card. Once you accumulate a certain number of points, you can redeem these points. Each credit card company provides different types of earning points. The points typically vary between different cards.

You should know how to earn and redeem the rewards points on your credit card. Let’s evaluate the ways in which you can redeem credit card reward points to earn exciting discounts.

What are Credit Card Reward Points?

Credit card points are an integral part of the loyalty programs. The main objective of these points is to encourage customers to use their credit cards dedicatedly. The credit card agencies offer a particular number of points for every rupee that you spend on buying things.

When applying for a credit card, you should consider what type of bonus rewards the issuer provides. It is also important to know whether the approved purchases and selected retailers align with your spending habits.

What are the Common Types of Credit Card Reward Points?

Before knowing how to redeem credit card reward points, you should be aware of the reward points. If your credit card functions on rewards point model, you will earn points every time you buy anything. However, the rate at which you will earn points differs from one card to another.

The strength of the rewards system isn’t only about earning rewards as numerous people believe. Note that earning rewards is only half the battle. The main power of a credit card lies in unlimited redemptions.

Just ask yourself how many times did you redeem your credit card points? Do you know the proper ways to redeem these points? Not everybody knows how to redeem credit card reward points. So, let’s clear the happiness surrounding the types of credit card rewards.

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Points

Against every single transaction of yours, you earn a fixed number of reward points. You can redeem these points for various purposes later. The credit card company might award you with bonus points to promote online and contactless transactions.

Cashback

The Cashback programs typically easier for cardholders to calculate their rewards. Most credit card issuers allow users to calculate through tier-based cashback. However, it is always important to adhere to the guidelines set by the credit card agency.

Miles

It is a popular type of credit card remuneration that lets you get flight tickets at discounted rates. Credit card issuers typically award users with miles when they use their cards for booking flight tickets.

How to Earn Credit Card Reward Points?

Earning reward points on your credit card is an automatic and straightforward process. There is no need for you to do anything extra to earn these points. Each time you swipe your card to buy anything, you get reward points. Usually, for every ₹100 to ₹250 that’s charged from your credit card, you will earn a single point.

However, each credit card company has a different calculation process through which they let users earn reward points. Moreover, the remuneration you earn will depend on the type of credit card you have. For instance, a high-priority card will allow you to earn a higher number of points compared to a basic card. You can generally earn credit card points in the following ways:

A Handsome Welcome Bonus

Most banks and NBFCs offer handsome welcome bonuses when you subscribe to their card. Based on the type of card you subscribe to; you can earn up to a few thousand reward points after its activation. Some banks will also let you earn additional reward points for spending a certain amount within two to three months.

Accelerated Points

If your main objective is to earn credit card points quickly, consider accelerated points. When you spend on specific categories like partner restaurants or fuel stations, you’ll receive additional points. So, for example, if you are using a travel credit card, you can earn additional points by spending on flight tickets.

Normal Reward Points

The normal reward points are the usual points that your credit card issuer allows you to earn. However, you have to spend a minimum of ₹100 to earn a single point. It also depends greatly on the type of credit you have.

International Reward Points

You can earn credit card points by using your card in specific foreign countries. It is important that you are aware of the countries where you can swipe your card to earn additional points. Using your card abroad will let you earn points quickly.

High-Value Buys

Spending on expensive commodities can let you earn some extra points on your credit card. For instance, most credit card companies reward extra points to their users when they buy jewellery with their cards. Moreover, using your card to book resorts and holidays can help you earn some extra points.

Milestone Benefits

The credit card issuers will offer bounties when you reach a certain milestone benefit. However, you should reach this limit within the period defined by the credit card company. It is crucial to spend a specific amount within a particular timeline.

What are the Best Ways to Redeem Reward Points on Your Credit Card?

One of the most effective ways to redeem credit card reward points is through the online banking portal. Therefore, you must link your credit card to your bank account to access the card details. After successfully linking the card, you can easily access the credit card statement and pay your credit card bills.

If you don’t prefer complicating things, linking your credit card to the online bank portal is the best option. However, there are individuals who don’t feel comfortable linking their cards to online banking. They can redeem credit card reward points through email or phone. It is crucial that you contact customer care of the bank and request the redemption of your rewards.

There are chances that you have to download the redemption form and fill it up when redeeming points online. So, the best way to redeem credit card reward points in the offline mode is by contacting the bank’s customer care.

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Things to Consider Before Redeeming the Reward Points

You will find most people interested to earn credit card points without knowing how to redeem them. Moreover, they fail to consider the basic things while redeeming the points. That’s why credit card users in India have an abysmal rate of redeeming reward points. Outlined here are some basic things to consider before redeeming the reward points.

Expiry Date of Credit Card Points

You might be happy knowing that you can earn credit card points by shopping. But have you ever thought that it is necessary to redeem these points within a specified timeframe? Almost all reward points earned through a credit card come with a specific expiry date. So, it is important to check your points in periodic intervals.

The Redemption Fee

Most banks and NBFCs charge a fee related to the redemption of rewards. In most cases, this fee is usually ₹100. Credit card issuers charge this fee for handling and processing the remuneration. So, when redeeming your points, you should be aware of this type of fee.

The Requirement of Minimum Points

Before you use your credit card reward points, you must have minimum points. In other words, you require a minimum number of points to be eligible for redemption. Moreover, every reward will cost a number of points for you to redeem the rewards.

Stop Losing Out on Credit Card Rewards

Credit card users should be more aware of how to lose out on the rewards. Always remember that you are spending a lot of money to earn credit card points. Therefore, you cannot waste your money by not redeeming the rewards. Cardholders should read the terms and conditions mentioned in the credit card document.

Moreover, you should make sure that the rewards system suits your lifestyle and spending habits. For example, there is no need to have a credit card that only rewards you for booking flight tickets. If you have rewards account you don’t know, you should immediately consult with the credit card company’s customer service. This will help you earn credit card points by spending on the right commodities.

You can utilize your credit card reward points in numerous ways. However, to do so, you must know how to earn points and redeem them. One of the most effective ways to earn points is to learn how the credit card company will reward you. There are credit card companies that allow you to convert your points into cash. Reward points are a bonus perk on your credit card. It is advisable not to shop only to collect points.

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