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Ways to maximize credit card rewards points!

Think you can't be bothered about reward points because their value is too small? It is time for you to change your mind because reward points can greatly benefit you if you use them right. Moreover, rewards are your money after all.

Let's find out how they are useful for cardholders like you.

Why reward points?

Every time you use a credit card, the bank earns what is called an 'interchange' fee from the merchant outlet. So, banks offer reward points as an incentive to encourage you to spend more. The merchant for his part, gets increased business. It's a win-win for all.

How do you earn reward points?

You can earn points by simply using the card for your regular purchases. The rewards program structures vary from one bank to another, as well as from one credit card to another.

The reward points start from 1 point for every Rs.xx. The base value of xx is dependent on the type of card. The points earned can go up to 2X, 3X or even 10X depending on the card, the type of transaction and the offer. As an annual bonus, most banks reward you with additional points at the end of the year, if you spend a certain amount of money on your credit card.

What do you get for your reward points?

Banks offer a number of ways to redeem once you have accumulated enough points.

Catalogue – You can choose from a range of products available across categories like home, dining, fashion, electronics, accessories, books & entertainment, health & beauty, hotels & dining, etc.

Redemption Vouchers - You can redeem your points for a variety of vouchers online or from the bank’s partners.

Cashback – You can get cashback for your points. The amount you get, will be credited to your credit card account and it can be used to pay your dues or any outstanding amount.

Air Miles – You can convert your reward points into miles, if you have a frequent flyer membership account with the bank's airline partners. You can then use these miles to get free flight tickets or discounts on flight tickets.

You can also redeem your points for free fuel, entertainment, vacation, hotel deals, travel packages and much more through phone banking, online banking portal, affiliated reward websites and merchant outlets.

Pay with your rewards points instead!

You can redeem your reward points instantly over the counter at specific partner merchant outlets with just a swipe of your card. You can also redeem your points against purchases made at select online shopping partners. The transaction will adjust your reward points towards the purchase amount.

Make your points count.

  • Spend judiciously. Reward points are at best an incentive for using your credit card.
  • Make sure you pay on time, so that the reward points don't reduce in value.
  • Keep track of expiry dates of your reward points, vouchers etc.