What are credit card reward points

Accumulate rewards points and spend them smartly.
What are credit card reward points
5 min read
14th Aug 2023

In today's financial landscape, credit cards have become more than just a convenient mode of payment. They have evolved into powerful methods that offer high perks and benefits. Among these benefits, credit card reward points are particularly enticing. These points not only sweeten the deal for consumers but also provide a gateway to savings, experiences, and even adventures.

Credit card reward points

Credit card reward points are essentially a loyalty program to incentivise you to make purchases using your cards. With each transaction, you can earn and accumulate points that can later be redeemed for a variety of rewards. These rewards range from cashback and gift cards to travel vouchers and merchandise. The allure of these rewards has led to a competitive market, with credit card companies trying to offer the best rewards on credit card spends.

How to earn reward points on credit cards

Earning reward points is a straightforward process if you understand how your credit card's rewards program works. Some credit cards offer a flat rate for every rupee spent, while others have bonus categories that offer higher points for dining, travel, or groceries.

To maximise your point accumulation, it is crucial to choose a credit card that fits into your lifestyle and spending habits. If you are an avid traveller, opting for the best rewards credit card like the Bajaj Finserv RBL Bank Travel Easy SuperCard can be a smart move. Similarly, if your expenses revolve around dining and entertainment, a card like the Bajaj Finserv DBS Bank SuperCard with discounts in those categories would be more beneficial.

How to redeem credit card reward points

Once you have accumulated a substantial number of reward points, the next exciting step is redemption. Credit cards typically provide various options for redeeming your points. Common methods include:

  1. Cashback: This straightforward option allows you to use your reward points to clear your credit card balance.
  2. Gift cards: Many credit card reward programs collaborate with popular retailers, allowing you to exchange your points for gift cards.
  3. Travel rewards: Travel enthusiasts can make the most of their points by redeeming them for airline tickets, hotel stays, or rental cars. Some credit cards also offer the flexibility to transfer points to frequent flyer programs.
  4. Discounts: The accumulated rewards points can be used to get hefty discounts on your purchases, travel, or subscriptions.
  5. Merchandise: From electronics to fashion accessories, some credit card rewards catalogues offer a host of products that can be redeemed using your points.
  6. Experiences: Some credit card companies offer unique experiences such as concert tickets, exclusive events, or even once-in-a-lifetime adventures as part of their rewards programs.

What can you get in exchange for your reward points

The possibilities of what you can get with your credit card reward points are vast and exciting. Depending on the credit card you have, your accumulated points could translate into anything from a free flight to an exotic destination, a luxurious hotel stay, a new gadget, or even a shopping spree. This flexibility allows you to tailor your redemptions to your preferences and needs.

How to maximise the reward points on your credit card

To make the most of your credit card reward points, consider these strategies:

  1. Strategic spending: Focus your spending on categories that offer bonus points. If your card rewards dining and entertainment, for instance, use it for those expenses.
  2. Signup bonuses: Many credit cards offer enticing signup bonuses that can kickstart your reward points journey. Make sure to take advantage of these offers when you first get a new card.
  3. Combine points: Some credit card issuers allow you to combine points from different cards within the same rewards program. This can significantly boost your point balance.
  4. Timing: Keep an eye out for limited-time offers, special promotions, or discounts on redemptions. Timing your redemptions strategically can maximise the value of your points.

Ways to avoid losing credit card reward points

Losing out on hard-earned reward points can be disheartening. To prevent this, consider the following tips:

  1. Check expiry dates: Some credit card reward points come with an expiration date. Make sure you are aware of these dates and plan your redemptions accordingly.
  2. Stay informed: Credit card rewards programs can change over time. Keep yourself updated on any alterations to your card's rewards structure or redemption options.
  3. Use them wisely: Do not let your points sit idly. Aim to redeem them for rewards that provide value to you. Holding onto points indefinitely might result in a devaluation of their worth.

In conclusion, credit card reward points can be a powerful tool. You can leverage these points to access a world of benefits, from travel adventures to valuable merchandise. By understanding how to earn and redeem reward points effectively, you can unlock a range of opportunities that complement your spending habits and lifestyle.

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Frequently asked questions

How does credit card reward point work?

Credit card reward points are offered by credit card companies as an incentive to customers. Customers accumulate points by making purchases with their credit cards. These points can then be redeemed for rewards such as discount vouchers, cashback, travel vouchers, and more.

How do I claim my reward points?

To claim your reward points, log in to your credit card account and check your reward points balance. Select the option to redeem your points for the reward of your choice. Ensure that you understand the terms and conditions of the reward scheme, including the expiry dates, before redeeming your points.

What are credit card reward points?

Credit card reward points are incentives offered by credit card companies to encourage customers to spend more with their credit cards. Points are earned based on the amount spent, and they can be redeemed for a range of rewards.