Most people prefer using credits due to the reward programmes linked to them. These rewards are like bonus given by the banks in the form of incentives, air miles or cash banks. Generally, banks offer reward points based on the types of credit cards.
Credit card users can redeem these points for several benefits like discounts on shopping, gift vouchers, etc.
How can one earn rewards on credit card?
You can simply earn rewards on a credit card while making transactions using them. While you can certainly earn reward points for day-to-day purchases, you can enhance your rewards further by using credit cards smartly. For this, you need to understand your reward programme and ways to earn reward points.
Many banks gift certain rewards points to their new credit card customers as a Welcome Bonus. So, you can earn reward points just by getting a new credit card. Sometimes, card issuers also give more reward points to the customers, who spend a certain amount during the initial period.
What type of transactions will get you more reward point?
All credits are linked to rewards points for specific amount of transactions made on them. For example, if a credit card offers five reward points spend on every Rs. 200, then the card user will get 1250 reward points after spending Rs. 50,000. The same rewarding system is applied for almost merchant establishments like shopping websites, utility bills, etc.
Buying expensive things like jewel or electronic items or booking a holidays will help you earn more reward points on your purchases. You can also earn more reward points by linking your credit cards to utility bill payments. As utility payments are compulsory expenses, you get the following double benefit by using credit cards to pay them,
- Earning rewards points for each transaction
- Becoming eligible for loyalty points
Furthermore, premium credit cards like Gold or Platinum are linked to higher reward points than standard cards. Banks provide additional benefits to the customers who have been with them for a longer time and who use their credit cards for bigger transactions. These credit cards provide their users with even more reward points on selected brand partners.
There is one specific category of credit cards called fuel credit cards. The users of these cards are getting more reward points whenever they swipe these cards to fill fuel at the outlets partnered with their banks. Just like fuel credit cards, there are travel credit cards linked to accelerated reward points for transactions made during travelling.
How can you redeem reward points?
You need to know how many rewards points you have earned by logging to your credit card account or by contacting your bank.
There are reward catalogues where you can find the information on the merchandise you want to buy and rewards points required for them. These catalogues contain a variety of options from different categories like travel, lifestyle, home décor, etc. You have to select the product and redeem your reward points to purchase it. Then, the product gets shipped to your mailing address. The process to redeem any product from the catalogue is similar.