03 Jun 2019
#FinancialBytes: Best ways to redeem credit card reward points?
Credit cards are one of the widely-used cashless payment methods because of the convenience they offer.
Credit cards offer many benefits/perks and choosing the right card can help customers save a lot.
Card issuers also offer rewards to customers in the form of reward points earned on spends and redeemable in various ways.
Here are some of the best ways to redeem reward points.
Redeem reward points to purchase products from bank catalogs
Credit card holders can redeem their reward points they have earned on spends to purchase products from the concerned bank's catalog.
Banks provide customers with catalogs containing products that cardholders can purchase in exchange of their accumulated reward points. These catalogs contain products from different categories like electronics, travel accessories, clothing, crockery, spa and salon services, accessories, movie tickets, etc.
Cardholders can get vouchers in exchange of reward points
Credit card companies also provide customers with an option to redeem their reward points against vouchers.
These vouchers provided by the card issuers can be redeemed at stores/merchants that the concerned bank might have partnered with.
Some vouchers allow customers to enjoy discounts on online purchases on select platforms. The value of these vouchers depends on the value of the accumulated reward points.
One can also redeem reward points for travel miles
Travel miles are another great option to redeem one's accumulated credit card reward points.
While credit cardholders can earn travel miles on certain travel-related spends, some banks also allow customers to convert their reward points to travel or air miles.
These travel miles can be used later to make payments for travel tickets or avail discounts on flight tickets.
#3: Customers can choose to convert points to cash
Some banks allow credit card customers to convert reward points to cash; this is one of the most popular ways to redeem points. The converted amount is credited into cardholder's credit card account and can be used to pay outstanding balances or make other payments.
#5: Some banks allow cardholders to make donations
Some banks also allow customers to make donations using their accumulated credit card reward points. Cardholders can make such donations to charities of their choice. In such cases, the reward points are converted to cash and then donated to charities.