Credit Card Reward Points: Do you have such reward points in your credit card, which can give you free shopping, flight tickets or hotel booking? After all, why are most people not able to take advantage of these points and what is the right way to redeem them?
Credit Card Hidden Benefits: Are you also one of those people who use credit cards only to pay bills at the end of the month or when money is tight? If yes, then you are doing a big loss to yourself. The credit card you keep in your pocket can take you on free flights and can also get you free shopping from branded showrooms. The only problem is that most people forget to check these hidden points of the credit card. Let us know how you can avail these ‘freebies’ from your card.
Where do you go wrong with credit cards?
Whenever you refill petrol, do online shopping or pay a restaurant bill with your credit card, the bank gives you some points on every transaction. These are called Reward Points. The biggest mistake people make is that they think that these points are of no use or they are very difficult to use. The bank’s rule is that after a fixed period of time (usually 1 to 2 years) these points automatically expire. The result is that your hard-earned points go waste without any use.
How are reward points accumulated?
Suppose you spend ₹1,000 and the bank gives 10 reward points on it. By doing this, thousands of points can be accumulated throughout the year. Later these points can be used in different ways. Most people think that reward points are just for small gifts, but many cards offer much more than that.
What can you get from reward points?
1. Free flight travel
If you are fond of travelling, you can convert your credit card points into ‘Air Miles’ of airlines. Many big banks provide you this facility. In exchange for your points, you get huge discounts on air tickets or sometimes the entire ticket becomes free. So next time you plan a trip, do check the card app before paying from your pocket.
2. Free shopping with branded vouchers
In exchange for these points, you can also avail free gift vouchers from big brands like Amazon, Flipkart, Myntra or Pantaloons. Suppose you have 5,000 points, then the bank will give you a shopping voucher of Rs 1,000 or Rs 2,000 in exchange for it. With this you can buy clothes, shoes or even household ration without spending a single rupee from your pocket.
3. Can be converted into cash
Some banks are so lenient that they convert your points directly into cashback. That is, the amount of points you have will be minus (reduced) from your next credit card bill.
How to claim these benefits?
- Log in to your bank’s official net banking or mobile app (like HDFC MyCards, SBI Card, ICICI iMobile).
- Go to the menu and click on the option of ‘Rewards’ or ‘Redeem Points’.
- There you will see the option of Vouchers, Flight Booking and Cash.
- Choose the option of your choice and redeem your points instantly.
Disclaimer: This article has been written only for general information and awareness purposes. Reward points, cashback, air miles and other benefits of credit cards may vary from bank to bank, card and offers. Please check the terms and conditions on the official website of your bank or card issuer before deciding on any offer, redemption or purchase. The information given in the article should not be considered as financial advice.