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Redeem Credit Card Reward Points
Reviewed by: Fibe Research Team
- Published on: 16 Nov 2023
Reviewed by: Fibe Research Team
Credit card reward points are something that most issuers offer to their cardholders for using the card. With every use, you get a certain number of points depending on several factors. You can exchange or ‘redeem’ these points for products, discounts or a cash equivalent and more.
Read on to learn more about what credit points are and how to redeem points on credit cards.
When you use your credit card to purchase an item or service, issuers give you points based on your spending, which gets added to your account. However, every credit card issuer has a different program and the points you earn depend on their terms and conditions.
Additionally, customised credit cards, such as fuel cards, travel cards and shopping cards, have customised rewards programs that cater to your spending habits. So, ensure you understand these conditions before you get one to make the most of the card.
After accumulating sufficient points, you can use or redeem them to buy vouchers or air miles. You can also get discounts on merchandise when you use your reward points to make payments. The credit card reward points ‘convert to cash’ option in some cards allows you to use the points for payments instead of your card balance.
Also Read: Benefits Of Credit Card
You can use or redeem credit card points depending on the terms and conditions of your issuer and the card you choose. However, here are some common ways to use the reward points you earn:
Banks and financial institutions offer customers a catalogue of products they can buy using their reward points. These contain products from various categories, including stationery, clothing items, household products, electronics, etc.
You can buy e-vouchers with reward points and use these to shop at select retailers as per the issuer’s policies. The valuation of the e-vouchers also vary based on the points and terms of the issuer.
If you travel frequently, you can convert your reward points into air miles. Some credit cards have fixed air miles that you can get with reward points. Using these air miles, you can buy airline tickets or get a discount on your flight booking.
If you do not wish to redeem your reward points by buying products, you can opt for the credit card reward points ‘convert to cash’ option and use the points as cash. However, check your card provider’s policy to ensure this facility is available.
You can also donate your reward points to a charity of your choice. For this, simply select your preferred organisation and the number of reward points you want to donate. Your provider will convert them into cash and donate them.
Remember, the reward points depend on your credit card issuer and the type of card you choose. To redeem your reward points or understand their terms and conditions, you can login to your credit card account. You can also call customer care for assistance or request redemption of your credit card points.
Apart from reward points, a credit card also offers numerous benefits like discounts, cashback and more. One such card is the newly launched Fibe Axis Bank Credit Card. You enjoy benefits like a 15% discount on dining with partner restaurants, up to 3% discount on every transaction, complimentary domestic airport lounge access and much more. Download the Fibe App to apply now and link this numberless credit card with your UPI ID today!
The rate of one reward point varies from bank to bank. For example, one reward point in SBI is ₹0.25, Axis Bank is ₹0.35 or ₹0.20 and so on. So, the value of 1,000 credit card points depends on your issuer. You can check these in your statement or by logging in to your account.
Yes, because when you redeem credit card points, you get to enjoy exclusive access to products, discounts, cashback and other benefits.
Yes. Reward points often come with limited validity, generally 2 to 3 years, after which they expire and hold no value. You can check the validity on your credit card statement or by logging in to your account.
Yes, by closing your account, you will lose all your reward points.
Yes, your credit card reward points may have a negative value depending on your issuer. In this case, the issuer can deduct the equivalent amount from your card balance to make your rewards balance zero. The issuer can also redirect any points you earn towards your rewards account until the balance is zero or above.
