Credit cards give you reward points on the value of the transactions done using the card. For instance, you might earn 10 reward points for every INR 100 spent using the card. These reward points are added on each credit card transaction and, once accumulated, can be redeemed in multiple ways. Many of you don’t understand how redemption of your reward points works and you let the points accumulate without utilising them. So, here are some of the best ways of redeeming the accumulated reward points on your credit cards so that you get the maximum benefits and privileges –
Get cashback
If you have a cashback credit card or if your credit card allows you cash benefits on the accumulated reward points, you can redeem the points on cashbacks. In such cases, against the value of your accumulated reward points, you would get a specified amount of cash in your bank account. For instance, for every 10, 000 reward points the card might give you cash back of INR 250.
Buy gift vouchers
Another way of redeeming your reward points is to buy gift vouchers of merchant partners. Credit card issuers are tied-up with leading merchant partners and give you gift vouchers of such partners when redeeming your reward points. For instance, for every 1000 reward point, you can get gift vouchers worth INR 500 of leading brands like BookMyShow, MakeMyTrip, Shoppers Stop, Yatra, Lifestyle, etc.
Choose gifts in kind
There might also be a gift catalogue offered by credit card issuers in exchange for your reward points. You can redeem the points on buying electronics, gadgets, electrical appliances, home and kitchenware, accessories, etc. Whatever you choose would be offered to you free courtesy of your reward points.
Pay off your credit card bills
Many issuers also allow you to use your reward points in paying off your credit card bills. in such cases, the accumulated reward points equal a monetary value which can then be used to pay the outstanding credit card bill partially or fully.
Get discounts with your rewards
You can also use your reward points to get attractive discounts on your transactions. Travel cards usually give discounts on air ticket bookings when reward points are used for the said booking. Similarly, you can also get discounts on online shopping sites using your reward points accumulated in the card.
Donate
If you want to do charity, your credit card would help you do that without you having to spend anything yourself. The accumulated reward points on your credit card can also be used to be donated to recognised charitable institutions which are tied-up with the credit card issuer. So, you can find the charities supported by your credit card issuer and use the monetary value of your reward points to make a donation to the charity.
Credit cards give you reward points in multiple ways and when you accumulate these points you can get some great privileges and benefits with the reward points accumulated. So, know how to redeem your reward points for maximum gain.
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