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.