Credit Card Reward Points

Credit cards offer a rewards program where you can earn points for every purchase you make. These points can be redeemed for various benefits such as vouchers, merchandise, airline miles, or statement credits. To maximize your rewards, it's essential to understand how to earn and redeem credit card points effectively. Keep reading to learn more about optimizing your credit card rewards program.

How to Earn Reward Points on Credit Cards?

When using a credit card with a rewards points system, you accumulate points with each purchase you make. However, the rate at which you earn these points varies depending on the specific card you have. For instance, one card may grant you 1 reward point for a particular purchase, whereas another card could offer 5 points for the same transaction.

Rewards credit cards often provide accelerated earning opportunities within specific categories. For example, the SBI SimplyCLICK Credit Card typically offers a base reward rate of 1 point per Rs. 100 spent. However, when you use your card for online purchases, you can earn 5 points per Rs. 100. Moreover, for online spends with partnered brands such as Amazon, BookMyShow, EazyDiner, etc., you may earn 10 points per Rs. 100. Additionally, some credit cards offer bonus reward points upon reaching a certain spending milestone. For instance, if you spend Rs. 2 Lakh in a year, the card might reward you with 5,000 bonus reward points.

Here is a summary of the various methods through which you can accumulate reward points:

Type How to earn points?
Sign-up Rewards By reaching the said spending threshold within the specified period after card activation
Accelerated Rewards By spending on special categories (differs from card to card)
Renewal Points By renewing your credit card
Add-on Cards By spending on the supplementary card
Regular Rewards By spending on the card
Milestone Benefit By spending a specific amount within the specific time frame

How to Redeem Reward Points?

There are many methods for redeeming your credit card reward points, and the redemption process may be different on the card issuer. Below are the details:

How to redeem your reward points online?

You can go to your credit card issuer's online banking portal. Log in with your User ID and Password. There, you'll see different choices for using your reward points, like vouchers, merchandise, or cash credit (if offered). Pick what you want and place your order. If you choose a voucher, you'll receive the code on your phone and email. For merchandise, it'll be delivered to your address.

How to redeem your reward points offline?

You can also visit your nearest branch and request a reward redemption form. Fill it out and either submit it in person or mail it to the credit card division. It typically takes 1-15 days for the points to be redeemed. After that, your order will be delivered to the address on file.

How to redeem your reward points through customer care?

Another way to redeem your rewards is by calling the customer care department of your bank. The representative will explain your redemption options and assist you throughout the process. You might need to download a form and email it. Any handling charges will be billed to your credit card.

Additionally, some credit cards offer the option to redeem points directly with specific brands or merchants. This feature is often available with co-branded credit cards. You can utilize your accrued points to make purchases directly with these partner brands.

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Credit Card Reward Points by Banks

Reward Points on Top Credit Cards

Credit Card Base Reward Rate Extra Rewards
SBI SimplyCLICK Credit Card 1 reward point per Rs. 100 Earn 5X points when you spend online, and get 10X points on online purchases made with exclusive partners.*
BPCL SBI Card Octane 1 reward point per Rs. 100 Receive 25X rewards on fuel purchases at BPCL petrol pumps and on the Bharat Gas website and app.
SBI Card PRIME 2 reward points per Rs. 100 Earn 5X rewards on dining, movies, groceries, and department store purchases.
Citi PremierMiles Credit Card 4 Miles per Rs. 100 Get 10 miles per Rs. 100 on airline transactions and on the PremierMiles platform.
HDFC Diners Club Privilege 4 reward points per Rs. 150 Enjoy 2X rewards on weekend dining and 10X rewards on purchases made through SmartBuy.
HDFC Moneyback+ Credit Card 2 CashPoints per Rs. 150 Get 5X CashPoints on EMI spends at select merchant locations and 10X CashPoints on purchases at Amazon, BigBasket, Flipkart, Reliance Smart SuperStore, and Swiggy.
IDFC FIRST Millennia Credit Card 1 reward point per Rs. 150
  • For spends up to Rs. 20,000: Earn 3X rewards for offline purchases and 6X rewards for online transactions.
  • Enjoy 10X rewards on incremental spends above Rs. 20,000.
Kotak League Platinum Credit Card 4 reward points per Rs. 150 Get 8 reward points for every Rs. 150 spent on special categories.
HSBC Smart Value Credit Card 1 reward point per Rs. 100 Earn 3X reward points on online, dining, and telecom categories.
ICICI Sapphiro Credit Card 2 reward points per Rs. 100 on domestic spends Earn 4 Reward Points for every Rs. 100 spent on international transactions.

What can you get in exchange for your reward points?

Card issuers offer a wide-ranging rewards catalog, allowing cardholders to select what they want to redeem with their accumulated points.

Cashback- While many cashback credit cards give you money back directly on your statement, some let you turn reward points into cash. You can then use this cash to pay off what you owe on your card.

Gift Vouchers- You can exchange your reward points for e-vouchers from popular brands, stores, or restaurants.

Air Miles- Some credit cards offer air miles as rewards directly, while others let you convert accumulated points into air miles. These miles can then be used to buy air tickets or receive discounts on ticket purchases.

Donations- You can use your reward points to make donations to charities partnered with the banks. Simply select the charities you want to support, and your reward points will be converted into cash, which will then be given to the chosen charity.

Merchandise- Banks offer catalogs with various products that you can get using your reward points. These items include clothes, accessories, books, stationery, travel gear, electronic gadgets, beauty products, and more. Each product in the catalog has a specific number of reward points required to redeem it.

Frequently Asked Questions (FAQs)

1. What is the benefit of reward points?

The main benefit of reward points is that they can be used to get discounts when you're shopping. Once you've collected enough points, you can use them to get rebates and discounts on your purchases.

2. How can I redeem my credit card points?

Redeeming your reward points online is usually the easiest method. Many banks provide home delivery for products you purchase online using your reward points. You can also convert these points into air miles and use them to buy airplane tickets.

3. Can reward points be converted to cash?

Certain banks provide the choice to convert your reward points into cash. The converted cash amount is then credited to your credit card account, allowing you to use it for various payments.

4. What is the use of reward points in credit cards?

Banks offer reward points as a bonus for every purchase you make with your credit card. You gather these points as you use your card. When you've accumulated a sufficient amount, you can exchange them for gift vouchers, merchandise, air miles, and more.

5. How are reward points calculated?

You can determine the value of a reward point by examining the cost of the gift available for redemption. For instance, if a credit card company offers a Rs 1,000 purse in exchange for 5,000 reward points, then each reward point is valued at 20 paise.

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