Knowing how to redeem credit card points is crucial to leverage the maximum benefits of your credit card. As a rule of thumb, it’s ideal to redeem your reward points for as much value as you can get. Remember, you can save more on your transactions using these points wisely.
To utilise the full potential of these points, evaluate your credit card and its reward program first. After that, simply follow certain strategies on how to maximise these benefits. Here’s all that you need to know!
Get a Card with a Beneficial Reward Points System
First things first, choosing the right credit card is crucial if you plan to capitalise on the reward points. Remember, different cards have varying reward point systems. While some issuers offer higher bonuses on select transactions, others may offer benefits when you exceed a certain spending limit.
But how do you get the right card that meets your requirements while helping you earn exclusive benefits? Here’s a list of some easy-to-follow tips:
- Research about different credit card options.
- Compare the reward points that different cards offer for every ₹100 spent.
- Examine the points you can get on EMI purchases, full bill payments, etc.
- Read the terms and conditions related to the redemption of the reward points.
Keep Track of the Accumulated Reward Points
Simply collecting the credit card reward points by initiating transactions is not sufficient. To plan a strategy to utilise these points wisely, keeping track of them is equally essential. Wondering why? Simply because you will be well aware of what the accumulated reward points amount to.
Here’s a list of options for how you can track your reward points:
- Online portal/mobile app of the card issuer
- The customer service team of the credit card company
- Email or text alerts from the issuer
- Monthly statements of your credit card account
Use Your Welcome Benefits Smartly
Most issuers offer reward points as a welcome bonus. They provide these benefits to entice new customers, allowing newbies to start their credit card journey. That’s not all. Apart from the welcome benefits, you can also earn reward points on some payment thresholds, like:
- Making the first payment using your credit card
- Paying your credit card bill in full and on time
To maximise your savings and use your card to its full potential, plan your redemption by making smart spending choices. Also, avoid unnecessary expenses as they can lead to an unexpected financial burden at the end of the month.
Avoid Impulsive Utilisation of the Reward Points
With accumulated reward points, you may often get tempted to use them right away and save money on your bill payments and other expenses. However, planning a redemption strategy is essential to reap the maximum benefit of these reward points.
Firstly, assess your expenses and payments and then make an informed decision whether or not to use them immediately. If it isn’t necessary, you can continue accumulating your reward points and utilise their benefits when you initiate a high-value transaction.
Make Recurring Payment Via Your Credit Card
A great strategy to maximise your credit card reward points is to shift your regular and recurring payments on your credit card. Sounds simple, isn’t it? This helps you earn more reward points, which you can use as per your redemption strategy.
Did you know most credit cards offer cashback or discounts on recurring payments? That’s right. Here are a few instances of recurring transactions:
- Payment of your utility bills
- Payment of subscriptions on OTT platforms
- Loan EMIs or insurance premium payments
- Payment of school or college fees
Look for Limited-Time Offers
To make the most out of your credit card reward points, watch out for select deals and offers available for a short period. Such opportunities help you save more and earn better reward points.
You get to enjoy these offers during:
- Promotional periods
- Special events
- Festivals and holidays
Use the Points for Travel
Most credit card companies let you convert your reward points into air miles. And you can use them to book your flight tickets with your favourite airline at a pocket-friendly price.
Apart from flight tickets, you can use these reward points for:
- Booking hotels and resorts
- Paying for car rentals
- Making payments at restaurants
- Purchasing vacation packages
- Paying for activities while travelling
If you want a credit card with an advantageous reward points system, you can get the One Credit Card. Using this card, you can get up to 5X rewards on top spends that you can utilise while travelling or on other transactions. What’s more, this card offers easy conversions of your purchases into budget-friendly EMIs with attractive discounts coupled with shopping and dining offers.
You can track your expenses while spending confidently using the powerful app. In addition, this card helps you save more money as you don’t need to pay any joining fee, annual fee, or reward points redemption charges. To get the free credit card, apply online through the One Credit Card App or the website.