How to Use Credit Card Reward Points to Your Advantage

Credit cards can offer a whole host of benefits from discounts and deals to exciting reward programs. Learn how reward points and programs work and how to get the most from them below.

What are credit card reward points?

Rewards credit cards usually let you earn reward points each time you use your card to make an eligible purchase. Once cardholders have accumulated enough reward points, they can redeem them for benefits like discounts on shopping and travel bookings, cashback, exclusive events, or exchanging points for merchandise or gift cards.

Now that credit cards are a common financial tool used 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 type of reward program though the rules of the program may vary. It is important to choose a credit card with a reward program that aligns with your personal needs, lifestyle and overall financial goals.

How do credit card points work?

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

Credit card rewards at Citibank

Citibank credit cards offer two distinct rewards: ThankYou® Points and Citi Miles. Learn how each reward works below.

ThankYou® Points: Earn ThankYou Points on select transactions made using your Citi Prestige® Credit Card, Citi Rewards Credit Card, and Citi Premier Credit Card.

Citi Miles: Earn Citi Miles on select transactions made using your Citi Ultima® Credit Card.

Here's how you can redeem your points/miles:

• Fly with points: Redeem your miles/points for flights using the Citi Mobile ® App. 
• Pay with Points/Miles: Use points or miles to offset eligible purchases using the Pay with Points feature on your Citi Mobile ® App.
• Cash rebate: Redeem your points for cash rebates on the mobile app.
• Points transfer: Transfer your ThankYou® Points or Citi Miles to participating loyalty programs, giving you competitive conversion rates without being tied down to any given program.

For more on reward conversions rates and redemption visit our Rewards and Redemptions page.

What to remember about credit card reward points

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

1. Monitor the accumulation of your reward points to make more informed decisions about when to redeem them for the best benefits.
2. 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.
3. Remember the expiry dates, restrictions, and any other instructions provided by the card issuer regarding the usage of reward points.
4. Exercise caution when redeeming reward points with e-vouchers. Pay attention to terms, conditions, and expiration dates.
5. Familiarize yourself with the requirements for converting reward points to cash.
6. Understand the limitations of co-branded cards for point redemption, as these points are typically redeemable only at partner establishments or the brand itself.
7. Avoid making credit card transactions solely to earn points.
8. Remember to compare the rewards benefit to the overall card costs (annual fees and other considerations). Ensure you earn more than you spend.

How to use credit card reward points

Now that we've covered the basics, take a look at these top 5 tips for spending your reward points.

1. Convert credit card points to cashback

One of the best ways to use credit card points is to have your reward points converted to cash back. The amount is credited to your account by the bank and can be utilized in future.

2. Redeem reward 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 or used for online shopping.

3. Travel with air miles

If you enjoy exploring the world, opt for Citi Ultima or Citi Prestige cards that offer 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.

4. Read the reward redemption catalogue

Rewards card issuers typically provide customers with a catalogue featuring products the customer can trade their accumulated reward points for. The selection of products may include clothing, crockery, stationery, accessories, footwear, travel merchandise, movie tickets, spa packages, salon services, and more.

5. Track your reward points

Keep an eye on your credit card reward points. Look out for expiration dates and be sure to use your points before they expire. Read your rewards program terms and conditions carefully to understand if your credit card points have a shelf life or any redemption limitations. Consider tracking your points on an app or spreadsheet if you need to.

Double your benefits with the right account

Choosing the right account can help compound your credit card benefits. When you open a Citigold account with Citibank, you get access to a whole new world of exclusive privileges, such as:

• A complimentary credit Card (upon maintaining Citigold minimum balance of $200,000)
• Golf benefits at premium golf clubs in Dubai and Abu Dhabi
• Access to Citigold lounges in Dubai and Abu Dhabi
• Marhaba services at select airports
• Deals, discounts, offers and much more.

Citigold opens the door to a wealth of exciting lifestyle experiences. Learn more or apply for your account now.

Final thoughts

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.