A major benefit of using credit cards is the reward points awarded by the issuer. These reward points arean incentive for using the card and can be redeemed for cashbacks, gifts, discounts, and special offers. These reward points may be available on all transactions done by you or on transactions of a certain value. Some issuers also allow redemption of reward points to buy flight tickets or make hotel bookings.
Get the Card That Rewards You Well
You should focus on getting cards that not only offer reward points but also offer their redemption in ways that are useful for you. For this, go through the catalogue provided by the bank which contains the list of stores or services where the customer can exchange or redeem his reward points. These points can be redeemed at offline and online stores or used for many other purposes.
Here are some ways in which you can make the most of your credit card reward points:
- Choose the Most Rewarding Card: The first tip to get the maximum benefit out of credit card reward points is to choose the right credit card that suits your requirements and matches your spending habits.
Generally, reward points are available on all types of purchases, but certain banks offer higher reward points on some specific transactions. Some cards may offer higher reward points on shopping, while others may offer these points on your restaurant bills, movie tickets or big-ticket items. So, choose a lifetime free credit card that offers the highest reward points on expenses regularly incurred by you.
If you are a frequent traveller choose a card that allows redemption of reward points for booking tickets.
- Increase Your Credit Card Usage: Ensure that you can collect maximum reward points and redeem them for products and services of your choice. This is possible when you make all your payments via credit card. Also, go for a credit card with no annual fee and a good reward point policy that offers reward points for every Rs100 or more spent by you.
- Do All Your Birthday Shopping Via Card: Some issuers offer extra reward points on shopping done on special occasions like birthdays and anniversaries. Avail of these offers and get additional reward points that can be redeemed for extra benefits.
- Look for Cashbacks and Spend Accordingly: A percentage of your credit card reward points can be exchanged for cashbacks. This is specified in the terms and conditions. You can use this option to adjust your purchases and other expenses in such a way as to get cashbacks.
- Look at the Redemption Options: Apart from choosing a credit card with low-interest rates, go for a credit card that allows you to redeem your reward points for various purposes. These points can be redeemed to buy air tickets, get discounted dinner coupons, movie tickets, or avail of exciting shopping offers. You can use your accumulated reward points to buy a new bicycle or a watch or a gift for your loved one.
You can make optimum use of your credit card reward points only if you are aware of the issuer bank’s rewards redemption policy. Go through it thoroughly when you apply for a credit card.