Are Credit Card Reward Points Worth It?

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How can I earn and redeem credit card reward points? Keep reading to know more about Credit Card Reward Points.

Wondering which type of credit card you should go for as there is a wide range of credit cards available in the market currently. You must have found reward points for credit cards while researching the credit cards. A reward point-based credit card is one whose incentives revolve around the reward points. Go through the rewards program before making a purchase so that you know which spend category lets you earn reward points. This is only possible if you have the right credit card, you need to first analyze your spending habits and needs before applying for a credit card. Having the right credit card helps in maximizing the rewards on it. To know more about the credit card reward points keep reading.


How to earn reward points?

Some of the credit cards allow you to earn reward points on every spend category. But there are other credit cards that specify the spend category that allows you to earn certain reward points and moreover accelerated reward points as well. You need to know your credit card well enough before you start using it. Once you are aware of the rewards program start using your credit card to earn the reward points. Say, for example, the IDFC First Select credit card allows you to earn 3 reward points per Rs. 150 spent on offline transactions and 6 reward points per Rs. 150 spent on online transactions.

Some of the credit cards with best rewards programs are HDFC Bank Diners Club Black Credit Card, Axis Bank Magnus Credit Card, HSBC Smart Value Credit Card, Citi Rewards Credit Card, etc.


How to redeem reward points?

You can easily redeem the accumulated reward points on your credit card. You need to accumulate a certain amount of rewards on your credit card to be eligible for the redemption process. Every credit card has a different reward redemption process, know the process of your credit card before proceeding with the redemption. Almost every credit card has a set 2-year expiration of rewards. In that duration, you can successfully redeem the reward points.

You can redeem the rewards by purchasing products from the product catalog, booking flights/hotels, purchasing e-vouchers, DTH recharge, against cash statements, fuel purchases, etc.


Bottom Line:

To conclude, whether credit card rewards are worth it or not. Yes, definitely it is worth having a credit card with reward points as you are earning rewards while spending which you can use in the future to purchase anything from the reward catalog. You need to keep certain things in mind such as while using a credit card use it for those transactions only which let you earn reward points, accumulate a minimum of reward points that are eligible for redemption, you need to redeem the reward points in the given validity time period.

While redeeming the reward points the credit card issuer charges a redemption fee. In order to keep using these benefits, you need to keep your credit card dues clear every month. Also, to build a credit score you need to maintain a low credit utilization ratio.

Do share your experience with the rewards credit card in the comment section.