How to get the best out of your credit card’s reward points

Credit cards are an integral part of our daily lives. Ranging from discounts, offers, and deals that credit cards bring to the table, it also provides us with ease of use and convenient pay-back options. Credit card usage has immense potential. However, one must always be a wise user.

One of the key reasons why a credit card is a popular product and continues to lure customers is a lifelong loyalty programme in the form of ‘Reward Points’. These reward points encourage customers to make use of their credit card for their key spending categories like shopping, dining, bill payments, travel and much more.

However, it is observed that beginners are often unaware of how to make effective use of credit card’s reward points offering. Here are a few tips on how you can earn maximum reward points from the powerful plastic card that you hold in your hand and make the most out of these points.

Make the most of welcome points & accelerated reward points

Some credit cards offer reward points as a joining benefit, where you need to spend a minimum amount within a specified time period to earn them. You can also earn extra points if your card gives accelerated reward point offers on certain types of expenses such as grocery, utility bill payment, dining etc., depending on your card type.

An accelerated reward points offer is where you earn extra points for a specific expense category, eg: 10X reward points on spending an amount at a particular dining spot. Take advantage of such reward points structure on your card, but most importantly, make your spending decision wisely.

Earn maximum rewards points by spending on limited period offers

You can earn higher reward points by making the most out of limited period offers that can provide accelerated reward points. For example, if a bank offers 10-15 times reward points on grocery shopping every Tuesday or double reward points on weekends, then it would be prudent to use the card more on those days. Limited period offers are also run during festive seasons like Diwali, Christmas and even Independence Day. You can earn more reward points by spending on such special occasions.

Also read: Should you use credit cards or buy now pay later schemes?

Keep track of the reward points earned

Earning points on your credit card is one of the best ways to reduce costs for your next shopping or while planning for a holiday. However, it is sometimes difficult to keep track of how much reward points you have earned and where. Many banks have a dedicated portal for customers to track their transaction-level points earning. The entire process of point redemption is transparent for the customers. Therefore, it is advisable to keep a track of your reward points before they expire.

Redeem your reward points for benefits you like

Once you accumulate reward points, don’t forget to redeem them for desired benefits. Reward Points earned on credit cards can be redeemed against a plethora of options like online platform gift vouchers, mobile/DTH recharges, travel/hotel/bus bookings, airmiles, merchandise, and more. This can be done very easily online and with just a few clicks.

There are many types of credit cards available in the market today to cater to various needs of the end customers. However, you must select the card that is best suited to your spending habits. Analysing your requirement before using a particular card will not only help you to choose the right credit card but also save more on daily expenses through reward points, cashbacks, discounts, and offers.