With a credit card from your bank, you also get gifts, freebies, discounts, and other deals, aside from, of course, the credit card that allows you to pay for services and purchase products on credit.
You can make intelligent use of the reward programme on your credit card to earn points for payments incurred on bill payments, shopping, dining, travel, and the like. Later, you can redeem the points so earned for a variety of perks and gifts.
Thus, it can be said that a credit card reward point is a perk offered by the bank to credit cardholders as a reward for every penny they spend on their credit card. However, the reward points do not fetch much in terms of money, but are more like a perk offered by the bank. Once you have accumulated enough reward points, you can redeem them for things such as air miles, merchandise, cash, gift vouchers, and the like.
You could also convert the reward points earned on your credit card through Netbanking. The simplest way to do it is to visit the bank’s netbanking portal and go to the "Redeem Reward Points" section. The process, however, varies from bank to bank.
However, it has also been observed that first-time credit card users are not very aware of the right usage of credit card reward points. Each bank offers different ways of earning reward points. Points also vary depending on the kind of card – basic or high priority.
Here are a few tips on how you can earn the maximum reward points from your credit card.
Leverage welcome points and accelerated reward points: Some banks credit the cardholder's reward account with welcome points.Sometimes, you get welcome points when you spend on your credit card within the first 90 days of the card's issuance. When you spend on specific categories, such as shopping at partner stores, dining experiences, entertainment, and so on, you earn accelerated reward points.You could leverage such points and make a wise decision on your spending.
Make the most of the limited period offers: When you make the most of the limited period offers that offer accelerated reward points, you earn higher reward points. For example, if a bank offers more reward points for grocery shopping during Diwali or Holi, it would be wise for you to use your credit cards on those days. Sometimes there are offers on certain days of the week too, such as Fridays or Tuesdays.
Redeem points for rewards you need. You could also redeem points for rewarding your loved ones with e-vouchers or gift cards. Says Utkarsh Saxena, head of products-credit cards, RBL Bank: "Such gifts give flexibility to the recipient on the choice of the desired gifts. You may also choose to shop through a range of categories on the rewards portal. Also, you could save a lot on airfare and hotel accommodations via reward points. You could also instantly top up or recharge your mobile for free or at a discounted price. "
Keep track of the reward points earned: It is equally prudent to keep track of the credit card reward points before they expire. Usually, most banks have a dedicated portal for customers to track their earned points. When you learn to keep track of this, you can make the most use of it for your next shopping trip, buying air tickets, and so on.
