Things You Need To Know About Credit Cards Reward Redemption

Credit card holders typically receive gifts, bonuses, discounts, and other promotions from banks that offer credit cards. Reward programs tempt users to use credit cards for various purposes, including bill payment, shopping, dining, travel, etc. Customers can earn points in exchange for this and later exchange them for a range of benefits and gifts.

Reward points are worth less than what is charged to a credit card, but they are only a benefit provided by the bank and cannot be used to get your money back. But as soon as you have enough reward points, you can exchange them for various items, including gift cards, merchandise, cash, and air miles.

Things You Need To Know About Credit Cards Reward Redemption

Reward points earning methods:

Each bank provides a variety of ways to collect points. Depending on whether a card is a basic credit card or one with high priority, the number of points earned will differ between various cards. Some of the following programs provided by credit card companies are:

Reward Points How to earn points When it is going to be credited
Welcome Points By obtaining a card. Upon paying membership dues or annual fees.
Bonus Points By exceeding the necessary limit on spending. Just after the purchase.
Loyalty Points Whenever you renew your credit card. When the renewal fees are paid.
Regular Points By using the card for purchases. Just after the purchase.
Accelerated Points Spending money on niche categories. Just after the purchase.
High-value Purchases By making costly purchases or travel arrangements. Just after the purchase.
International Points Spending money abroad. Just after the purchase.
Supplementary Cards Use a supplementary card to make purchases. Just after the purchase.

Redemption of reward points:

Credit card reward redemption has a variety of options for using them. Depending on the options that different banks (HDFC Bank, AXIS Bank, IDFC Bank, SBI Bank, ICICI Bank, etc.) provide. You should consider the following factors before deciding to redeem your acquired points.

Required minimum points:

Depending on the features of your credit card, you might need a minimum amount of points to be qualified for redemption or there might not be one. However, each reward will have a certain number of points associated with it that you must have to use your reward points.

Date of expiration:

The majority of reward points have an expiration date. This deadline is set by banks at two to three years after the funds were earned. Maintain a regular check on your reward points and make timely redemptions.

Redeeming fee:

When redeeming rewards, a fee is commonly charged. The cost to handle and process the reward is about Rs. 100.

Reward programs provided by partners:

Loyalty Rewards:

  • HDFC Bank Regalia
  • HDFC Bank Infinia
  • HDFC Bank Dinners Club International
  • IndusInd World Miles

PAYBACK

  • American Express

Conclusion

The first step is entering the world of credit cards is to select the appropriate credit card. You must use your card responsibly and make all required payments on time if you want your credit card experience to be easy and rewarding. Now that you know what credit card rewards are, you should be able to explain them to others. Review all of the features and benefits in detail before applying for a rewards credit card. By doing so, you can make sure that the credit card you choose will meet your needs.

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