One of the most valuable benefits of using credit cards as a preferred mode of payment is the ability to earn and redeem reward points. Aside from ease of use and being able to repay at a later date, credit cards come with credit card reward points that offer you allied benefits such as co-branded deals, attractive discounts, shopping coupons, airport lounge access, cashback, the option of converting your spends into easy EMIs, amongst a host of other perks.
Reward points are widely regarded as one of the most appealing features of credit cards. Every time you swipe your credit card, a few reward points are added to your account. When you accumulate a certain number of reward points, you can redeem them in a number of different ways.
Reward points are types of incentives that customers receive when they use a credit card to make purchases. Credit cards typically have a fixed reward point earning ratio that varies depending on the type of credit card and the issuing bank. For example, a certain credit card company may have a reward policy of granting 1 point for an expense of every Rs.100.
There are accelerated reward points when you shop at partner merchants. Some banks differentiate reward points for specific categories based on the customer’s card type. For example, a credit card company may have a policy that allows you to earn 2x reward points if you use their card with a certain merchant.
Here are some of the benefits credit card reward points offer:
There are many ways to earn reward points on your credit card. Different banks offer different ways in which you can earn reward points; below are some of the most common ways that banks offer reward points:
When you spend money on monthly expenses or large purchases, you will earn ‘points’ on your purchases. A credit card rewards programme allows you to redeem your points in various ways, including flights (or travel), shopping, and cash back.
If you want to redeem your credit card reward points earned, here are a few ways to redeem your points:
Step 1: Log in to your Bank account using your user ID and password.
Step 2: Click on the Credit Card Option and view your credit card statement, reward summar and reward points balance.
Step 3: Redeem as per your points available and place your order accordingly with the merchandise’s account.
Step 4: Your order will be delivered to the address you have provided while placing the order in approximately 10 business days.
You can contact your bank’s customer care number and the representative will help you with the redemption process. You can choose your desired product and place the order.
Few banks partner with offlines stores too. You can walk-in to these stores and redeem your points.
It is critical that you understand how cashback and reward points in credit cards differ from each other.
Each rewards programme operates differently, and the value of your rewards varies by programme.
Reward points cannot be redeemed all at once. To redeem, you must first accumulate a certain number of reward points. The accumulated reward points must be redeemed within a certain period. Most banks permit redemption within 2 to 3 years.
Credit card usage has increased significantly since it provides numerous benefits to users. A credit card can easily manage significant expenses and daily expenditures. Credit card reward points can help you reduce your monthly bill. Furthermore, the reward points can be redeemed for various attractive gifts from partnered stores.
Credit card rewards programmes have developed significantly, with a wide range of appealing offers. Consumers are advised to assess their spending patterns and choose a rewards programme best suited to their preferences to extract the most value.
Ans: No, you cannot transfer reward points from one credit card to another.
Ans: You can redeem your reward points through internet banking, mobile app, rewards website, or customer care center.
Ans: Yes, if your credit card company allows it, you can convert your reward points to cashback. Some lenders have different terms and conditions for redeeming reward points.
Ans: Banks provide you with numerous options for redeeming your reward points based on your needs. You can use your points to get vouchers or other rewards through the rewards catalog.
Ans: Factors influencing the total number of points you earn and their value are.
Type of credit card
Where Do You Spend
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