How and when can I redeem rewards on a credit card?


Banks provide reward points to customers to encourage them to use their credit cards often and derive benefits by redeeming those points. Nowadays, banks even have their own reward points programmes for you to use your credit card to make purchases and earn a lot of points on that basis. Once you accumulate sufficient reward points, you can redeem them in the form of cash back offers, vouchers, air miles and more.

To get a credit card apply online on your bank’s website, fill out the required form and submit the relevant documents. You can apply by visiting your bank and completing your application process. If you already possess one and are wondering when and how to redeem your reward points, we are here to help you.

Earning Reward Points

Reward points are added to your credit card every time you make a purchase with it. Bigger the amount of your purchase more will be the reward points added to your card. For instance, purchasing a flight ticket with your credit card will earn you more points than paying a monthly bill.

How to redeem your reward points?

Redeeming your points is nothing but exchanging them for different benefits offered to you by your bank. The benefits can be big or small depending upon the purchases you make and the number of points you accumulate on your credit card. You can redeem your points in the following ways:

  • Air miles: Travel enthusiasts can often trade their reward points in lieu of a few air miles. These air miles can be used for getting good discounts on your flight tickets and help you save money in your future travels.
  • Cashback: You can use this popular redemption method where you can use the benefit of receiving some part of your purchase amount as cash back, instead of more reward points on your card.
  • Vouchers: Another way to redeem your points is through vouchers. You can redeem these vouchers at numerous stores that are associated with the bank or for online purchases you make on select e-commerce websites. The value can range from a few hundred to a few thousand rupees.
  • Catalogue products: Different banks provide you with a catalogue of products that you can buy using your reward points. The products may belong to various categories such as fashion, electronics, eatables, and more.

Best time to redeem your reward points

There is no right or best time to redeem your reward points. Redemption can be done as and when you come across a good offer and feel it is best for you. Ensure to redeem your points before the offer expires to get the maximum benefit out of it. Also, it is advisable to accumulate sufficient points on your credit card before you plan to trade them in for a product or service.

Just like online banking, credit card also provides you with the option of having cashless transactions. But the major benefit of a credit card is the reward points you earn with each purchase. If you use your card wisely, you can enjoy multiple offers redeeming your reward points.

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