How to Use Credit Card Reward Points

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Credit card rewards programs can turn your everyday spending into valuable benefits. Whether you’re aiming to collect points for travel, earn cashback, or enjoy other perks, knowing how to use these points wisely can make a big difference in your finances. In this article, we’ll walk you through how to earn, maximise, and redeem your credit card reward points so you can get the most out of every swipe.

What are Reward Points?

Every cardholder can earn reward points on their credit cards with every transaction they make. You can later redeem these points through vouchers and gifts. The reward points are some types of benefits you earn through your bank when you make transactions on your credit card, but you cannot convert these points back into cash. Reward points can be anything, such as merchandise, vouchers, or even shopping benefits. But you should know how to use your reward points by redeeming them.

How to Use Credit Card Reward Points?

While reward points can come with benefits through redeemable vouchers and some gifts, you should know how to use them to take advantage of this facility. Here’s how to use your credit card reward points:

Log into your bank account: Use the mobile app or visit your bank’s official website to log into your bank account.
Locate to the credit card section: Locate the section dedicated to your credit cards. This is usually under a tab labelled “Credit Cards” or something similar on the main screen of the website or app.
Select your card: Choose the specific credit card you want to redeem points for.
Find the redemption option: Look for a menu item or button labelled “Redeem Credit Card Points” or something equivalent. It might be under “Rewards,” “Offers,” or a similar section.
Explore reward options: Discover the various ways you can redeem your points. Common options include:
- Merchandise: Redeem points for products from a catalogue
- Gift Cards: Exchange points for gift cards to your favourite stores
- Travel Rewards: Book flights, hotels, or vacations using your points
- Cashback: Convert points into cash or statement credits
- Balance Transfers: Use points to pay off other debts
- Charitable Donations: Donate your points to a chosen charity
Check your point balance: Verify the total number of reward points available for redemption. Be aware of any minimum point requirements for specific rewards.
Choose your reward: Select the reward that best suits your preferences and point balance. Consider the value of the reward compared to the number of points required.
Confirm redemption: Review the redemption details carefully, including the number of points to be redeemed and any associated terms and conditions. Click on the “Redeem Points” or similar button to finalise the transaction.
Receive confirmation: You will typically receive an email or SMS confirming your redemption. This confirmation will include details about how to claim your reward, such as a redemption code or instructions for delivery.

How to Maximise the Benefits of Your Reward Points

While there are already great benefits on your credit cards, you can still maximise these benefits on your credit card reward points. Here’s how:

Understand the value of your reward points: They can vary significantly depending on how you choose to redeem them. For instance, using points for travel bookings often provides a higher return than opting for cash back or gift cards. It’s worth researching the point value associated with different redemption options offered by your credit card to ensure you’re getting the best deal.
Keep track of the expiration date: Building up a substantial reward balance can certainly enhance your redemption value. However, it’s important to note that most credit card reward points typically expire within two years of being earned. To avoid losing any points, make sure to plan your redemptions carefully.
Read the terms and conditions carefully: Each credit card has its unique structure for earning, redeeming, and expiring points, which is often detailed in the fine print. By understanding these specifics, cardholders can strategically use their cards to earn the maximum number of points possible, avoiding any missed opportunities or pitfalls like point expiration or redemption restrictions.
Know the redemption rate: Just as the potential to earn rewards varies with each card, so do the redemption rates. That’s why it’s crucial to understand the specific conversion or redemption rates offered before making your choice.

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Bottom Line

Credit cards come with tons of benefits, and reward points are just some of those. Taking advantage of these points can save you some significant money. Keep in mind the above points and maximise the benefits!

Frequently Asked Questions (FAQs)

What is the use of reward points on credit cards?

Reward points are a bonus banks offer for every purchase you make with your credit card. As you use your card, these points accumulate, and once you've gathered enough, you can redeem them for gift vouchers, merchandise, and more.

Can reward points be converted to cash?

Not every bank offers this facility, but some do allow you to convert your reward points to cash. The converted reward points will be credited to your credit card and can be used to make payments.

How can I earn reward points on my credit card?

Every time you make a transaction on your credit card, you earn reward points, which depend on different factors, such as the redemption rate.

Do credit card reward points expire?

Yes, reward points on your credit card have an expiry date.

Can I use credit card points to pay credit card bills?

When you redeem your credit card reward points, the equivalent amount is credited to your account as a cash adjustment. When the statement is generated, this amount will be applied to reduce your credit card bill.

Can I cancel my request to redeem the points?

Most banks do not permit the cancellation of a redemption request. The process cannot be reversed once you've asked for your points to be converted to miles or a gift.

How do I use reward points to pay credit card bills

You can't use reward points to pay off your entire credit card bill directly. However, many credit card issuers offer the option to convert your points into cashback, which is then credited to your account, reducing your outstanding balance. Be aware that the conversion rates may not be as favourable as other redemption options, and there could be minimum point requirements or fees involved in the process.

Priynka Rao

Priyanka Rao is a content strategist for Jupiter.Money, and specializes in writing on topics related to finance, banking, budgeting, salary & wages, and other financial matters. She has a passion for creating engaging content that resonates with audiences across various digital platforms. In her free time, Priyanka enjoys traveling and reading, which allows her to gain new perspectives and inspiration for her work. With a keen eye for detail and a creative mindset, Priyanka is committed to creating content that connects well with her readers, enhancing their digital experiences.