What Are Reward Points

Reward points are a popular feature provided by card issuers, which can be earned when you use eligible credit cards to make a purchase. With sufficient reward points, cardholders can redeem them for various benefits like discounts on shopping and travel bookings, cashback, accessing exclusive events, or exchanging points for merchandise or gift cards.

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 that can be redeemed on merchandise, gifts, travel miles, or cash back. It is important, therefore, to choose a credit card with a reward program that aligns with your personal needs, desires, and overall financial and life goals.

How Do Credit Card Points Work?

As a credit card holder, collecting and redeeming points is a rewarding experience. It can, however, be a little tricky to calculate how much you need to spend using the credit card in order to earn the number of points required 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 to make the purchase.

Points to Remember About Reward Points

To make the most of your credit card reward points, it is important to keep these key reminders in mind:

  • Monitor the accumulation of your reward points to make more informed decisions about when to redeem them for the best benefits.
  • Consider the price difference of products when using reward points for purchases, as it may be more expensive to purchase products with points than purchase directly.
  • Remember the expiry dates, restrictions, and any other instructions provided by the card issuer regarding the usage of reward points.
  • Exercise caution when redeeming reward points with e-vouchers by paying attention to their requirements and expiration dates.
  • Familiarize yourself with the requirements for converting reward points to cash.
  • Understand the limitations of co-branded cards for point redemption, as these points are typically redeemable only at partner establishments or the brand itself.
  • Avoid making purchases with credit cards solely to earn points.

How to Use Credit Card Reward Points

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 way to use credit card points is to: The converted amount is credited to your account by the bank and can be utilized as per your needs in the future.
  • Redeem Points 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 that 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 that offers air miles as a reward for spending. Credit card reward miles can often be used on regular purchases, to buy a flight ticket outright (if you have enough), or at least get a good discount on your next trip.
  • Read The Catalogue - Various banks provide customers with a catalogue containing products that 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 credit card reward points can be used wisely, such as fuel purchasing, training, different types of tutorial classes, availing specialized services, and entertainment-related purchases. These reward points converted into cash can also be used in exchange for discounts on vacation packages, hotel bookings, the purchase of items at designated stores and shopping malls, etc.

Credit cards are a convenient, secure, and easy way to shop in physical and online stores. They also help you earn reward points on your purchases which you can redeem later to unlock additional value, such as discounts, cashback, travel benefits, and exclusive offers. Using rewards points to make purchases not only boosts your purchasing power but also saves you money and provides you with certain perks you might not have received otherwise. If you’d like to make your money work harder and obtain extra value from everyday transactions, start making the most of your credit card rewards today.