With credit cards having become a key factor in the financial lives of people worldwide, it comes as little surprise that providers are offering attractive offers and deals to those who sign up. Most credit cards come with some form of reward program, generally allowing you to accumulate points which can be redeemed on merchandise, gifts, travel miles, or cash back. It is important, therefore, to choose a credit card with a reward program which aligns with your personal needs, desires, and overall financial and life goals.

As a credit card holder, collecting and redeeming points is a rewarding experience. It can, however, be a little tricky calculating how much you need to spend using the credit card in order to earn the amount of points needed for any particular reward. It is also worth keeping in mind that when redeeming points for a particular piece of merchandise, it may actually be cheaper to buy it in the stores than use your points on.

With that in mind (and once you've done a little bit of maths homework), take a look at these top tips for spending your reward points:

  • Get Cashback - A popular option and the best use of credit card reward points is to convert these points into cash. The converted amount is credited to your account by the bank, and can be utilized as per your needs in the future.
  • Redeem Points On Vouchers - Many credit card providers offer vouchers as one way to redeem reward points. These credit card vouchers can be redeemed at a number of stores which the bank may be associated with, and in many cases can also be used for online shopping.
  • Fly Away With Air Miles - For those of you who enjoy travelling, try to find a credit card which offers air miles as a reward for spending. Credit card reward miles can often either be used on regular purchases, to buy a flight ticket outright (if you have enough), or at least get you a good discount on your next trip.
  • Read The Catalogue - Various banks provide customers with a catalogue containing products which the customer can exchange in lieu of their accumulated reward points. The selection of products may include clothing, crockery, stationery, accessories, footwear, travel merchandise, movie tickets, spa packages, salon services, and more.
  • Other Options - There are a few other options where the credit card reward points can be used wisely. Such as fuel purchasing, for training, for different types of tutorial classes, availing specialized services, entertainment related purchases.These reward points converted into cash can also be used in exchange for discounts on vacation packages, hotel bookings, purchase of items at designated stores and shopping malls, etc.