some banks have rules wherein you need to redeem your points within a pre-specified date or they will expire. Most banks have done away with this policy and others are in the process of phasing it out, but check before you sign up for a credit card. Also, compare the rewarding system and the number of merchants and brand tie-ups of the credit card to see how many points you can redeem.
How to Redeem the Points?
There are different ways one can redeem the credit card reward points, which are mentioned on the bank website. To redeem your reward points, you must contact your credit card company as there are different ways to redeem them. Some of the common methods are-
You can redeem by shopping for clothes, shoes, jewellery, gadgets, household products etc. by shopping in stores specified by the credit card company.
HDFC Bank credit card offers you the option to convert your reward points into air miles on Jet Airways flights.
For co-branded cards, reward points can be redeemed immediately after the purchase.
Some banks like Bank of Baroda allow you to redeem points for cash.
You may get the reward point adjusted on your next credit card bill.
Some banks have the coupon system wherein they send you coupons for the reward amount.
You can redeem the points online by purchasing from the online catalogue provided by the credit card company on their website.
Some banks also offer the option to redeem card points with gift vouchers from co-branded stores.
How to Best Use the Reward Points?
More banks are offering cash back against credit card reward points and you can use this course if you do not have any big purchases to make. If you have travel plans or are a frequent flier, use credit cards that are tied up with airlines or ticketing agencies so that you can earn more rewards and also receive discounts while redeeming the points. If you have to purchase groceries for your house, you can spend the vouchers on paying the grocery bill. You can also redeem points on gift voucher that you can give to someone on occasions such as birthdays, anniversaries or festivals.
It is essential to use your credit card wisely and not spend too much with your credit card, even to earn reward points. When purchasing a credit card, pick the one that offers maximum benefits in terms of reward points, cash backs and other