Credit cards have become an essential tool for managing expenses, and one of their most appealing features is the ability to earn reward points on purchases. Most banks in India offer credit cards that provide reward points on every purchase you make, which can later be redeemed for a wide range of benefits, from air miles to gift vouchers.
Let’s explore how you can maximize credit card reward points, the different types of rewards programs available, and how to redeem them effectively.
What are Credit Card Reward Points?
Reward points are essentially loyalty incentives offered by credit card issuers for using their cards to make purchases. The number of points you earn depends on the type of credit card and the nature of your spending.
For example, many banks offer at least five reward points for every ₹150 spent online. These points can later be redeemed for a variety of rewards such as air miles, gift vouchers, or discounts on future purchases.
How to Earn Credit Card Reward Points
The way you earn reward points can vary from bank to bank and depends on the type of credit card you hold. Generally, premium credit cards offer more points for each transaction compared to basic cards. Below are some of the common methods to earn reward points:
1. Welcome Rewards
Many banks offer welcome reward points when you first sign up for a credit card. Depending on the issuer, you can earn up to 1,500 reward points. Additionally, some banks offer bonus points for using your card within the first 90 days of issuance.
2. Regular Rewards
This is the most common rewards program available across almost all credit cards. Customers earn a set number of points on every ₹100 spent using their credit card. This usually ranges between 1 to 5 points, depending on the card and the nature of the transaction.
3. Accelerated Rewards
Some credit card issuers have partnerships with specific stores, restaurants, and e-commerce platforms. When you shop at these partner establishments, you can earn additional reward points. For instance, travel credit cards often offer extra points on booking tickets for buses, trains, or flights.
4. High-Value Purchases
If you frequently make large purchases, such as buying gold, booking international flights, or planning luxury vacations, you can earn a higher number of reward points. These transactions usually come with enhanced reward rates to encourage high spending.
5. International Rewards
Some credit cards offer extra reward points when you make transactions while traveling abroad. This feature is particularly useful for frequent international travelers.
6. Bonus Points
Certain credit cards offer bonus reward points for spending above a specific threshold. For example, if you spend more than ₹1,00,000 in a month, your reward points may double for every ₹100 spent.
7. Loyalty Points
Loyalty reward points are awarded by some banks when you renew your credit card each year. These points are a way to appreciate your continued patronage, and they can accumulate over time to provide substantial benefits.
8. Supplementary Cards
Banks also allow you to apply for supplementary cards for family members. While the supplementary cardholder must be at least 18 years old, the reward points earned through these cards are credited to the main cardholder’s account.
Read this :- Unveiling the Pros and Cons of Credit Cards: Empowering Your Financial Journey
Things to Know Before Redeeming Credit Card Reward Points
Before redeeming your reward points, there are a few essential aspects to be aware of. Understanding these terms can help you maximize your rewards without incurring extra fees or losing points due to expiration.
1. Minimum Points Requirement
Each credit card issuer has a minimum threshold of reward points that must be earned before you can redeem them. Ensure you check the minimum requirement to make the most of your rewards.
2. Expiration of Points
Reward points come with an expiration date, usually ranging from 2 to 3 years. Make sure to monitor your points regularly and redeem them before they expire to avoid losing out on potential benefits.
3. Redemption Fees
Most banks charge a nominal fee for redeeming reward points, typically around ₹100. It’s advisable to check with your card issuer regarding the exact redemption fees before proceeding.
Read this :- Easy Steps: Transfer Money from Credit Card to Bank Account
How to Redeem Credit Card Reward Points
Redeeming credit card reward points is a straightforward process, and most banks offer multiple ways to convert your points into rewards.
1. Internet Banking
You can easily redeem your reward points through internet banking. Log in to your bank account, navigate to the rewards section, and choose from available options such as gift vouchers, merchandise, or even cash credit. Once redeemed, your reward will be delivered to your address within 10 working days.
2. Customer Care
Another way to redeem points is by contacting your bank’s customer care. A representative will assist you with checking your reward points balance and help place an order for redemption. This option is helpful if you prefer human interaction or need assistance understanding the redemption process.
3. Post
Some banks allow customers to redeem points by mailing a rewards redemption form. You can collect this form from a bank branch, fill it out, and send it to the bank’s credit card division. The reward will be delivered within 10 days, and the points will be deducted from your account.
4. Partner Stores
Many banks have tie-ups with specific retail stores where you can use your credit card reward points directly for purchases. Any additional balance due after applying your points will be charged to your credit card.
Credit card reward programs offer immense value, especially if you know how to make the most of them. Whether you’re using your card for everyday purchases or high-value transactions, it’s important to understand the various reward schemes, how to earn points, and the methods of redeeming them.
Always choose a credit card that matches your spending habits and lifestyle to maximize your rewards and enjoy additional benefits like travel perks, gift vouchers, or cashback. By using credit card rewards wisely, you can effectively reduce the cost of future purchases and enjoy a host of privileges that come with being a cardholder.
Maximize Rewards with Credit Card Bill Payment
If you’re a MobiKwik user, you can further enhance your credit card reward points with the app’s credit card bill payment feature. By paying your credit card bills through the MobiKwik app, you can earn additional Cashback and SuperCash. MobiKwik also helps you make timely payments with payment due reminders, ensuring that you never miss a due date.
Timely bill payments not only improve your credit score but also unlock more rewards, making the MobiKwik app a valuable tool for managing your finances efficiently.
You can also use MobiKwik to do high-value transactions like rent payments, education fee & more to reach your card milestone reward points.
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