Credit card reward points program is one of the most common ways of offering value-back to cardholders. Users can earn reward points by using their cards and redeem the accumulated points to get vouchers, merchandise, air miles or cash credit. As most credit card reward points come with an expiry date, it is important for cardholders to track their reward earnings and redeem the reward points before they lapse. Here we will talk about how to use your credit card reward points and what you can get against the points you accumulate.
How to Redeem Credit Card Reward Points?
There are multiple ways to redeem the reward points and it varies from one provider to another. Some of the most common ways of redeeming the rewards are listed below:
Redeeming Credit Card Reward Points Online
If you wish to redeem your reward points online, you can choose any of the following methods-
Internet Banking- Login to the card provider’s net banking platform using your User ID and Password. Visit the Rewards section and follow the redemption process as directed on the platform.
Mobile Banking- You can also login to the mobile banking platform and follow the reward redemption process set by the card issuer. The actual process may vary from one issuer to another.
Mobile App- Most card issuers have launched their mobile app. You can redeem the reward points by logging into your account on the mobile app and following the process.
Redeeming Credit Card Reward Points Offline
Cardholders can also redeem their reward points through offline modes including-
Post- You can download the reward redemption form from the provider’s website or get the same from their nearest branch. Fill out the form and post it.
Customer Care- You can also call the customer support cell of your card issuer and raise a reward redemption request.
Click on the links below to check the reward redemption process of top providers:
What can you get on redeeming your reward points?
Usually, credit card issuers let the cardholders redeem their points to purchase items from their rewards catalogue. The catalogue itself is vast and includes vouchers, coupons, merchandise and more. Here are the details:
Products- The rewards catalogue includes a number of products such as apparel, footwear, accessories, stationery, home essentials, toys, books and a lot more.
Vouchers/Gift Cards- If you could not find anything from the rewards catalogue, you can get an e-gift voucher issued to you. The e-Gift voucher is usually emailed to the registered email address or on the mobile number provided while redeeming the reward points. It contains the Gift Voucher Code as well as the expiry date of the gift voucher. You can use this gift voucher as per the set terms and conditions to buy whatever the terms allow before its expiry date.
Air Miles- Some cards allow conversion of reward points into air miles. You can get the loyalty points of select airlines or a hotel chains in exchange for your reward points. The conversion rate, however, varies from one card to another.
Cashback/Statement Credit- Card issuers allow cash conversion on select cards. Under this, you can use the points to get cash credit into your statement at the pre-set conversion rate. For example, if the conversion rate is Rs. 0.25 for each reward point, then for 1,000 points, you will get Rs. 250.
Donations- Some banks also give you the option of donating for a cause using your reward points. You can select the charity of your choice and donate to it.
A few banks also offer instant redemption options on select credit cards. It is important to know and understand your credit card reward points programme to make the most of it. Be sure that you choose your credit card appropriately and use your card to maximise the points you earn.
Suggested Read: 7 Strategies to Optimize Your Credit Card Rewards
Things to Remember about Credit Card Reward Points
It is really easy to earn reward points and redeem them to get gifts and merchandise. But sometimes, knowing your reward programme better and keeping tabs on the updates can help you make the most of it. Here are a few important things to know about credit card rewards program:
You can get accelerated rewards on select categories
Learn about the reward programmes of your credit cards so that you can use them for the best rewards. For example, if your card gives more rewards on booking travel tickets, use the same for travel instead of a shopping card that does not offer extra privileges on travel.
Also Read: Best Rewards Credit Cards in India
Rewards come with an expiry date
Most of the rewards are valid for 2 years. To allow the customers make better use of rewards, some banks offer rewards that never expire but such cards are only a few. You can find the details of rewards expiring in near future on your credit card statement. Stay aware of these timelines so that you don’t lose reward points.
You should not spend solely for earning reward points
Though rewards are a good way to get value back for your spends, it should not be the reason for you to spend more. Higher spending will lead to higher bills and more financial obligations which you need to clear by the due date. Non-payment or delayed payment will lead to penalties and finance charges (also known as interest rate) which will add to your debt. The value of your rewards would not be sufficient to nullify the penalties and charges.
Also, if you have defaulted on credit card payment, your bank may forfeit the accumulated points.
FAQs
How do I convert my credit card points to cash?
Some credit cards allow the conversion of reward points to cash. The process, however, varies from one issuer to another. A general process would be to login to the net banking platform of your provider, go to reward redemption and choose the convert to cash option.
What is the value of 1 reward point?
The value of 1 reward point varies from card to card. It usually varies from Rs. 0.20 to Rs.0.50 but some premium cards also give Rs. 1 for 1 reward point. You can check the same on your card issuer’s official website.
Can I use credit card points to pay credit card bills?
On redeeming your credit card reward points, you can get cash credit into your statement. The amount credited will be adjusted against your credit card bill when the statement is generated.
Is it better to redeem points for cash or travel miles or vouchers?
All three options- cash, travel miles and vouchers have their own benefits and you must choose one as per your preference. For example, if you are getting a free air ticket in exchange for your reward points and you have a recent trip planned, this could be more helpful.
Which credit cards offer reward points that never expire?
There are only a few credit cards that offer never-expiring reward points. Some such cards are HDFC Infinia Credit Card, Citi Rewards Credit Card and Citi PremierMiles (for Air Miles).