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Credit card reward points are a convenient way to earn cash back, discounts on your next flight, and much more. Check out this article to explore more.
With the rise in use of credit cards over the last decade, there has been increasing confusion and curiosity about how to use credit card reward points and make the most of it effectively.
Hence in this article we will look into -
What are Credit Card Reward Points?
Credit card reward points are nothing but the sort of benefits that you get every time you make a purchase using a credit card.
Almost every credit card issuer bank or company will offer you with reward points
You earn a certain number of reward points for each transaction you make using your credit card. These points accumulate in your rewards account and can be later redeemed to avail exciting gifts and benefits
If you find yourself asking how to use credit card reward points or what could be the best ways to use credit card points then this article is for you
Now, let's look at the best ways to use credit card points and make the most of it.
Best Ways to use Credit Card Points
Based on your personal preferences, likes, and requirements, your credit card reward points offer a wide range of benefits.
You can redeem them in various ways, such as for travel discounts, cashback, merchandise, or gift cards. Let's explore the best ways to use credit card points and make the most out of it
1. Pay your credit card bills
You must know that every reward point is equal to some monetary value. For example, 1 reward point might be equal to 25 paisa. This value varies from banks to banks- you can check how much your bank offers.
Next, since you can actually get some cash from them, it is a convenient option to pay off some part of your credit card bills and would be a wise way to use credit card reward points.
Whether this option is available or not depends on your bank but if you can redeem reward points to pay your bill, you can consider doing so.
Here are 6 Sure Shot Ways To Pay Off Credit Card Bills Fast.
2. Use them for online shopping
Almost every bank has its own shopping portal.
It provides various items like electronic gadgets, household items, etc. that you might consider buying.
In case you have enough reward points in your account, you can use them to shop through your respective bank’s online store.
Some of the best known banks’ stores are: RBL Rewards, SBI Rewardz, HDFC MyRewardz, ICICI Payback, Axis EdgeRewards, etc.
Look for your bank’s e-shopping outlet and get going with your reward points!
3. Buy Brand vouchers
Once you visit the e-shopping site of your bank, you’ll find a handful of exciting deals and offers.
There might be collaborations with other e-shopping platforms and various brands. You can easily claim these brand vouchers through your reward points.
So before you actually start shopping for a particular brand, look for its e-voucher.
This way you will not only be able to shop items of your favourite brand but also save some extra bucks!
4. Book your flights/hotels
This option may not be available through every bank’s website but some of the most popular ones like HDFC and SBI do offer you the option to book flights or hotels.
HDFC’s site Smartbuy and SBI’s Rewardz provide easy access to booking flight tickets and hotel rooms through your earned reward points.
Even if you don’t get to have a full coverage of tickets or room, you will at least get to have a good amount of discount on them. So, use them.
5. Gift cards
You’ll find various types of gift cards or discount coupons on your bank’s online shopping portal.
From there, you can easily avail gift cards or coupons for any brand that you want and later use them while shopping.
You can use credit card reward points to purchase gift cards and purchase your favourite product with amazing discounts on them!
Additional Read: 8 Things That Will Happen If You Don't Use Your Credit Card
6. Cash backs
Another simple option to use your reward points is cashbacks. Just ask your bank for cashbacks on your purchase in exchange for your reward points.
When you do this, every time you will carry out a transaction, your bank will pay you cashbacks instead of assigning reward points.
7. Do the good deed - send them to charity
Some Banks are involved in charitable initiatives, providing you with the opportunity to donate your reward points to a cause of your choice.
Your bank will convert these reward points into money and donate them on your behalf. It is a good option if you wish to help the needy :)
8. Miles
Travel miles are an attractive option for people who are enthusiastic about travelling long distances.
You can redeem your reward points in exchange for miles- that is, travel benefits.
Either your bank's collaboration with a certain airline or hotel or your direct usage of a credit card to pay for those transactions can help.
You can later on use these miles while booking flight tickets.
9. Other options
There are some other additional options that banks provide as a part of their reward points redemption program.
These can be discounts on fuel purchases, training, classes, availing specialised services, entertainment purchases, etc.
You may also get to redeem your reward points in exchange for discounts on vacation packages or if your bank has collaborated with certain stores in your city, you can buy from these stores and earn amazing discounts.
Points to Consider While Redeeming Credit Card Rewards
Here are some tips on how to use you credit card points wisely to get the maximum benefits out of it -
- Be patient - It may take some time to accumulate enough points for the rewards you want. Don't be tempted to redeem your points for something you don't really want or need just to get rid of them.
- Check the redemption requirements - Not all rewards are created equal. Some may have restrictions on how they can be redeemed, such as blackout dates or minimum purchase requirements. Be sure to read the fine print before you redeem your points.
- Consider your spending habits - If you don't travel often, you may want to consider redeeming your points for cash back or gift cards. This can be a more flexible way to use your points, as you can use them for anything you want.
- Be aware of expiration dates - Some credit card rewards programs have expiration dates on points. This means that if you don't redeem your points before the expiration date, you'll lose them.
- Compare rewards programs - Not all credit card rewards programs are created equal. Some offer more points for certain types of purchases, while others have better redemption options. Compare different rewards programs before you choose one to sign up for.
- Use a rewards calculator - There are a number of rewards calculators available online that can help you estimate how much you can earn in rewards based on your spending habits. This can help you decide which credit card is right for you.
Reward Points Redemption Portals for Credit Card Service Providers -
- HDFC Bank Credit Card - https://offers.smartbuy.hdfcbank.com/diners
- ICICI Bank Credit Card - https://www.icicibank.com/personal-banking/rewards/reward
- Axis Bank Credit Card - https://edgerewards.axisbank.co.in/lms/
- RBL Bank Credit Card - https://www.rblrewards.com/
- SBI Credit Card - https://rewardz.sbi/user/login
- CitiBank Credit Card - https://www.online.citibank.co.in/credit-card/rewards/redeem
- Kotak Mahindra Credit Card - https://kotakrewards.com/
- Yes Bank Credit Card - https://credit.yesrewardz.com/
FAQs about Credit Card Reward points
Q)How much money is 1 credit card point?
Answer -Value of one credit card varies from 0.20 paise -0.40 paise commonly, may even exceed this in depending on your provider and variant of your credit card.
Q) Can I convert my credit card reward points to cash?
Answer - In many cases, you can convert your credit card reward points to cash. However, this option availability may vary depending on your bank and the terms of your rewards program.
Q) How much is 1 HDFC Reward point worth?
Answer - The value of HDFC reward point varies depending how you use it generally it is Rs 0.20 but in case of air miles 1 point equals Rs 0.30.
Q) What is the value of 1 SBI reward points?
Answer - 1 Reward Point is equivalent to INR 25 Paise. Thus, 1000 Reward Points get you free shopping worth Rs. 250.
Q) Do credit card reward points expire?
Answer - Yes they do expire, expiry date however may depends on terms and conditions of your service provider and the service you are using them for, example - hdfc reward points have two years validity, reward points will lapse for cards in inactive or dormant status for more than 365 days.
Though there are certain credit cards whose reward points never expire but may come up with some terms and conditions.
Q) Which credit cards offer reward points that never expire?
Answer- Several credit cards offer reward points that never expire. Some popular examples include:
- Chase Sapphire Preferred® Card
- Capital One Venture Rewards Credit Card
- American Express® Gold Card
- Citi Premier® Card
- Discover it® Cash Back
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