Banks and lenders that offer credit cards have significant reward programmes to go along with them. You earn credit card reward points each time you make a purchase through the credit card. While the number of points you are rewarded vary as per the cost of the purchase, you can ultimately redeem these points by availing different products and services.
Most credit cards offer similar categories of reward points. Read on below to learn about the most common ones.
Reward Points |
How to Earn Points |
Welcome Points |
When you become a cardholder |
Accelerated Points |
Points earned on purchase of special categories |
Loyalty Points |
When you renew your card |
Bonus Points |
Earned when you spend above the required limit |
High-value Purchase |
Earned when you spend on expensive goods or travel |
To redeem credit card points, there are a few steps you are required to follow before you attempt to redeem credit card points.
Make sure that you have the minimum points that can be redeemed as per your lender’s provisions.
Keep an eye on the expiry date for the credit card points and make sure to redeem them before they run out.
Check the fee payable for redeeming the credit card rewards and make sure to factor it in a while redeeming the rewards.
Read below to learn about the reward points offered by top credit cards in India.
Credit Card |
Benefits of Reward Points |
20 reward points for every Rs. 100 spent on utility bill payments |
|
10,000 reward points for annual spends of Rs. 5 lakhs |
|
10 Edge points on every Rs. 200 spent |
|
2 reward points for every Rs. 150 spent |
|
RBL Bank Icon Credit Card |
2 reward points for every Rs. 100 spent |
While credit card reward points span a range of products and services, you can use them wisely to avail the most advantage for you. Read on below to learn more.
Cash is always more appreciated than any products or services. Check if your lender allows you to cash out your credit card points.
Keep an eye out for products or services that you may have an interest in availing and take advantage of the discounted rates.
Use one credit card to maximise the collection of reward points and avail the highest benefits.
Keep an eye out for the expiry date so that you have plenty of time to redeem your reward points.
Assess the credit cards available on the basis of the reward points they offer before opting for one.
You will have to check with your lender if they allow you to pay credit card bills through the reward points you collect.
Most lenders enable you to convert credit card reward points to cash through their net banking portals. However, check with your lender on their procedure.
Your credit card reward points can be redeemed as cash or used to shop online or for air miles.
It is important for you to assess the reward points offered by different credit cards since the kinds of rewards offered by different lenders differ significantly. It is best to choose a credit card based on your requirements and interests.
Credit card reward points can be used to avail discounts while shopping or for air miles. They can be converted into cash, and some credit cards even let cardholders pay their outstanding bills through their reward points.