Credit Card 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.
In this blog, we have decoded all the questions and doubts about credit card reward points. Read on!
Each rewards programme operates differently, and the value of your rewards varies by programme.
They are the simplest to use because you receive a percentage of your spending back if you spend a certain amount. The percentage of cashback earned varies depending on the bank. You can compare the best credit card for cashback offers and choose the one best suited for you.
If you enjoy traveling, this is an excellent option. When you use the card to make purchases, you earn air miles that can be used to book flights. You can use these air miles to buy plane tickets or get discounts on plane tickets. Banks and credit card issuers collaborate with travel booking portals or airlines to provide travel-related benefits to cardholders.
The point system appears to be the same across all credit card issuers. However, the allocation and value may differ depending on the card issued and the bank’s rules.
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.
One of the most fundamental rewards is the credit card company’s cashback to a customer. This is a type of discount that is credited into the card holder’s account after they have made the purchase. Compare different credit cards for cashback offers and rewards to select one that meets your needs.
Each transaction earns you a set number of reward points, which can later be redeemed for goods or services. Bonus rewards may be given to specific merchant categories or merchants to increase online or contactless spending at merchant outlets.
Miles-based reward programmes are associated with airline co-brands and were targeted at affluent consumer segments who traveled frequently. Non-travel transactions would usually earn fewer miles.
There are many ways to earn reward points on your credit card. Different banks offer different ways to earn reward points; below are some of the most common ways that banks offer reward points:
Some banks offer welcome points to new credit cardholders.
Spending on high-value purchases such as jewelry, travel bookings, and vacations can fetch you higher reward points.
Some credit cards offer bonus points for using the card while traveling abroad.
When you spend a certain amount on your credit card, you can earn bonus points.
You will receive a set number of reward points for every buck spent on your credit card.
There is a scope to earn extra points when you spend money on specific categories like shopping at partner merchants, dining at partner eateries, apart from other dining expenses, entertainment, etc.
Credit card companies also provide rewards for renewing your credit card. You can earn a substantial number of points for your credit card loyalty.
If you want to redeem your credit card reward points earned, here are a few ways to redeem your points:
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.
While rewards are a nice perk, you should not overspend on your card just to rack up more reward points. Overspending may make it difficult to make full payment, resulting in late or missed payments and high finance charges.
Not all credit cards reward you equally; each one focuses on different types of spending. This is why it is critical to understand your rewards programme, identify the areas with the greatest benefits, and use the card appropriately.
The redemption rates are different for each card, just like the reward earning potential. This is why it is critical to first understand the conversion/redemption rate offered before making a decision.
Having a large reward balance will undoubtedly help you get a better deal when it comes time to redeem. However, keep in mind that credit card reward points typically have an expiration date of two years from the date of earning, so you must plan your redemption so that no points are lapsed. Furthermore, some credit cards offer reward points that never expire.
|Credit Card||Base Reward Rate||Extra Rewards|
|Citi PremierMiles Credit Card||4 Miles per Rs. 100||10 miles per Rs.100 spent on airline tickets and on the PremierMiles platform|
|SBI Card PRIME||2 reward points per Rs. 100||5X points on dining, movies, groceries, and department store purchases|
|HDFC Moneyback+ Credit Card||2 CashPoints per Rs. 150||5X CashPoints on EMI purchases at merchant locations10X CashPoints on Amazon, BigBasket, Flipkart, Reliance Smart SuperStore, and Swiggy|
|BPCL SBI Card Octane||1 reward point per Rs. 100||25X rewards on BPCL petrol pumps, as well as on the Bharat Gas website and app|
|SBI SimplyCLICK Credit Card||1 reward point per Rs. 100||5X points for online purchases10X points on online purchases with select partners*|
|HSBC Smart Value Credit Card||1 reward point per Rs. 100||3X reward points in the online, dining, and telecommunications categories|
|Kotak League Platinum Credit Card||4 reward points per Rs. 150||8 points for every Rs. 150 spent on special categories**|
|ICICI Sapphiro Credit Card||2 reward points per Rs. 100 on domestic spends||On international purchases, you will earn 4 Reward Points for every Rs. 100 spent.|
|IDFC FIRST Millennia Credit Card||1 reward point per Rs. 150||For purchases of up to Rs. 20,000:3X rewards on offline purchases and 6X rewards on online purchases10X rewards on additional expenditures in excess of Rs. 20,000|
Credit Card holders can avail whatever reward they want given the points they have earned:
Reward points can be redeemed for e-vouchers from well-known brands, merchants, and restaurants.
Instead of points, most cashback credit cards offer direct statement credit. Some cards, however, allow you to convert your reward points into cash credit. The funds can be used to pay off any outstanding credit card balances.
Each bank will have a catalogue containing a specific list of products as well as the number of reward points required for each product. Clothes, accessories, books, stationery, travel merchandise, electronic gadgets, beauty products, and other items can be found in the catalogue.
Reward points can be used to make a donation to one of the charities listed with banks. You can choose the charities to which you want to donate, and your reward points will be converted into cash.
Some credit cards allow you to earn air miles rather than reward points. Some credit cards, on the other hand, allow you to convert your accumulated points to air miles. These miles could be redeemed for air tickets or a concession on air tickets.
It is critical that you understand how cashback and reward points in credit cards differ from each other.
The main difference between cashback and reward points is that cashback offers are only available at partner outlets, whereas reward points are available on all transactions.
The other difference is the validity of cashback and reward points earned. Cashback has no expiration date because once credited to your account; you can use it whenever you want. Reward Points have a validity period of two to three years, depending on the bank, after which they expire.
Reward points have no maximum amount of reward points you can earn because the more transactions you make, the more reward points you will earn. At the same time, there is a maximum limit for earning cashback on specific offers and brands.
A credit card holder can easily manage significant expenses and daily expenditures with credit card reward points. 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.
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No, you cannot transfer reward points from one credit card to another.
You can redeem your reward points through internet banking, mobile app, rewards website, or customer care center.
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.
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.
Factors influencing the total number of points you earn and their value are.
-Type of credit card
-Where Do You Spend
Access your NetBanking Portal/Account via the HDFC Bank website. Then, in the Debit Card section, click the ‘Enquire’ tab. When you reach the next page, select the ‘Cashback Enquiry and Redemption’ tab. Choose the account number for which you want to redeem the points, and you’re done!
You can use SBI credit card reward points through sbicard.com or SBI card mobile app.
Access your NetBanking Portal/Account via the HDFC Bank website. Then, in the Debit Card section, click the ‘Enquire’ tab. When you reach the next page, select the ‘Cashback Enquiry and Redemption’ tab. Choose the account number for which you want to redeem the points, and you’re done.
By registering for ICICI Bank Internet banking, you can view your reward points balance. You can then log in to your account and navigate to the Credit Cards section. Under Rewards, you can view your point balance.
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