Credit card issuers provide exclusive benefits and offers which attract many people with unique needs. Even those who do not possess credit cards feel the need to own one because of the exclusive rewards these credit cards offer. You might even have heard someone say that they have accumulated thousands of miles or rewards in a few months. But do you know what people do with these reward points? Or how do they earn them or how can they use them? To know more about credit card rewards and redemption – read on.
Earn rewards on credit cards
You should get all the information on what rewards you will get before you apply for a credit card. There are various kinds of credit cards with unique rewards for every type of user. For instance, there is a credit card for those who travel frequently as they get a markup discount on foreign currency transactions, flight miles, hotel booking discounts, etc. There is a separate card for those who like everything fine in life where they can earn cashbacks and discounts on fine dining, shopping, etc. Simply put, people earn reward points on every spend they make using credit cards.
You can also earn milestone benefits basis the spends done using your credit card.. All the major credit card issuers provide spend-based rewards that allow you to earn accelerated reward points. For instance, IndusInd Bank provides accelerated reward points on its Legend Credit Card where you can earn 1 reward point for every INR 100 spent on weekdays and 2 reward points on weekends for every INR 100 spent. And on its Platinum Aura Edge Visa Credit card, you can earn upto 4X rewards on select merchant categories
Convert credit card rewards into cash
There are multiple ways you could redeem your reward points. You could either redeem them to book a hotel room for free, get discounts on select merchant categories or convert them to cash to pay towards your outstanding statement bill. Some credit card issuers provide this option, while some don’t. For instance, with IndusInd Bank you have the option to convert your reward points into cash credit to settle your outstanding bills. Also the reward points earned don’t carry an expiration date! So, you don’t have to worry about remembering the last date when you need to redeem your reward points before you lose them forever.
How to redeem Credit card points?
The credit card reward redemption process is simple. Some banks give you the option to redeem reward points via shopping, product catalog, gift vouchers, travel-related bookings, cash, etc. For instance, you can earn 1 reward point on every INR 100 spent during weekdays and 2 reward points on every INR 100 spent on weekends where the worth of every reward point is as high as INR 0.75 on premium cards like IndusInd Banks Legend Credit card.
You can redeem your reward points through fuel purchases, entertainment-related purchases, vacation packages, hotel bookings, special training classes, and more. The options vary from bank to bank. So, get in touch with your bank and see where you can get more value for your money!