What are reward points on a credit card, and how can they be used to get the most value from your spending?
Reward points on a credit card are part of a rewards program offered by banks or card issuers, where cardholders earn points for every eligible transaction such as shopping, dining, travel, or bill payments. These points accumulate over time and can be redeemed for a variety of benefits, including gift vouchers, merchandise, air miles, hotel stays, fuel, or even cashback. The number of points earned typically depends on the type of purchase and the card category, for instance, premium or co-branded cards often offer accelerated rewards on specific categories like online shopping or travel. To get the most value, cardholders should understand their card’s reward structure, focus on spending in high-reward categories, keep an eye on redemption options and expiry dates, and look for bonus point offers or milestone rewards. Using reward points wisely can significantly enhance the overall value and benefits of credit card usage.
1 Like
Rewards are incentives that the card companies give you for using their services. Usually you can exchange these rewards for services or you can shop using reward points. People use their rewards for all sorts of things to buy clothes on myntra, to fly for free or even a luxury hotel stay at Taj. The easiest way to optimise is to analyse which spends give you the most points and use that card to keep spending in that category. there isn’t really an app that does this for you at a minimal cost yet but really need an app to optimise all my reward points
1 Like
Which credit card gives best reward points on online shopping?
1 Like
sbi cashback - 5% cashback on all spends upto 4000
flipkart axis - great for shopping on myntra
swiggy hdfc card - great for ordering food online and gives cashback as well.
look into these three cards and pick based on where you spend the most
1 Like
I spend most on Amazon. Which card should I go for?
I remember when I first got my credit card, the whole “reward points” thing felt a little vague. The bank kept saying, “Earn points on every spend” but what did that actually mean? Over time, after using a couple of cards, I figured out how it really works.
Every time you swipe your card whether it’s for groceries, eating out, or booking a trip you usually earn a small number of points. For example, most cards give something like 1 point for every ₹100 spent. It doesn’t sound like much, but the points add up faster than you’d think. Some cards even give you extra (like 3x or 5x points) if you spend on certain things such as flights, dining, or shopping with their partner brands.
And You can use/redeem them for gift vouchers, hotel stays, flight tickets, cashback, or even fuel.