Credit Card Reward Points

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:

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:

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.

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.

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.

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.