How To Use Credit Card Reward Points?

How To Use Credit Card Reward Points?

Among all the categories of credit cards, the most common one you will find is reward point-based credit cards. You can get this type of credit card in entry-level cars as well as super-premium cards. Analyze your spending habits and needs and then only select the credit card that is right for you. On rewards credit cards you get to earn reward points on your spending as per the rewards program. On some credit cards, you earn reward points on selected categories and on some on all categories. The reward rate also differs from card to card. The main question comes how can you earn the card reward points and how can you use them to your advantage. We have listed below 6 ways to use credit card reward points. 

  1. Smartly use a credit card to earn reward points: Read carefully the rewards program on your credit card to know on which transactions you earn reward points. Instead of using your credit card for every transaction try and use your credit card for those specific transactions only. It helps you to maximize the benefits of your credit card rather than increasing the expenses.
  2. Redeem reward points timely: On most credit cards you get an expiry period on reward points redemption. It is advisable to redeem the earned reward points in the valid period only as after the validity period has elapsed you will not be able to redeem your earned reward points. You can use card reward points for purchasing e-vouchers, gifts, products from the catalog, recharge, converting into Air Miles, etc.
  3. Make the most out of offers: Now and then you get offers on credit cards. Check whether there is any offer available on your credit card or not. Most of the time on such offers either you earn accelerated reward points or cash back. First thing first, you need to analyze whether an offer is of any use to you or not, if it is not then don’t avail just for the sake of it. Save yourself from unnecessary expenses.
  4. Pay Credit Card dues with accumulated reward points: One advantage that you get with credit cards is you can pay the credit card bills with the accumulated reward points. During the shortage of funds, you can pay the minimum due balance of your credit card bill with the accumulated reward points. This way you will save yourself from the late payment charges.
  5. Buy Fuel: Another useful way to use your reward points is for purchasing fuel. On some credit cards, you can earn and redeem reward points on fuel transactions. It helps you cut down your cost.
  6. Avail cashback: Moreover, you can convert your reward points into cashback which you can use for making other transactions. One benefit you get with cashback is that they do not expire. So, convert your reward points into cash back before they expire.

Bottom Line

To conclude, the above-mentioned 6 ways to use your reward points can help you maximize the credit card benefits. Just not this you also need to understand that using a credit card wisely includes keeping your dues clear, maintaining a low credit utilization ratio, etc. 

Share your tips on how you use reward points on your credit card in the comment section.

Additional ReadingInstructions to Conduct a Financial Audit Effectively


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