How to Redeem Credit Card Reward Points

• Few credit card providers allow their cardholders to convert their reward points into cash.
• Depending on the type of card you hold, you can use your reward points to pay your annual fee.
• Cardholders can use their reward points to make flight or hotel bookings.
• Most credit cards also allow the cardholders to get a cashback using their reward points.
• Credit card providers have a catalogue where cardholders can redeem their reward points to buy select products.

Get in touch with your credit card provider and educate yourself about the reward program available on your card.

How Do You Earn Reward Points?

Earning points goes far beyond a simple base rate. Banks have created multiple ways for you to accumulate them, and knowing them is the first step to building a large balance.

Welcome Rewards  

• Many banks enroll you into their rewards program by offering welcome points when you get a credit card. 

• Depending on the issuer, you can earn up to 1,500 points,   

• Additional points may be awarded if you use the card within the first 90 days  

Regular Rewards  

• Available on most credit cards in India. 

• Earn a fixed number of points for every Rs.100 spent. 

• Typically ranges from 1 to 5 points (or more) per Rs.100.  

Accelerated Rewards  

• Extra points offered through partnerships with select stores, restaurants, and service providers. 

• Higher rewards on categories, such as dining, shopping, entertainment, or travel. 

High-Value Purchases  

• Spending on expensive items, such as gold jewellery, international travel, or holiday packages can earn more reward points. 

International Rewards  

• Extra reward points are often provided for transactions made abroad. 

Bonus Points  

• Earn additional points after reaching a specific spending threshold. 

• Example: 5 points per Rs.100 spent, which may double after crossing a monthly spend (e.g., Rs.1 lakh).  

Loyalty Points  

• Extra points are awarded for renewing your credit card annually. 

• Long-term usage can lead to significant reward accumulation. 

Supplementary Cards  

• Cardholders can request additional cards for family members (minimum age: 18 years)  

• All reward points earned on supplementary cards are credited to the primary card account 

What Affects Your Reward Earnings?

The points you earn will depend on the value of your transaction, the type of card you have and the bank which has issued the card and sometimes, also on the place where you have carried out the transaction. However, there are other factors which affect the overall points you earn and their value.

• Card variant - Card holders with a basic card variant will earn about one or two points for each transaction of around Rs 100 to Rs 250. However, cards that are of a higher variant, i.e. premium or super premium cards, will easily fetch much more points against purchases. For instance, for every Rs 200 that is spent on weekend dining on the Axis Bank My Zone card, the card holder gets to earn up to 40 rewards points. While basic, entry-level cards charge a nominal fee, premium and super premium cards will carry a significantly higher annual and joining fees.
• Co-branded Cards - Banks and card companies launch co-branded credit cards in association with major stores, brands, fuel providers, airlines, etc. Co-branded cards fetch reward points which may be as much as 5 to 10 times higher as compared to most other cards. For example, in case of airline co-branded cards, cardholders can avail extra reward points and discounts when they purchase tickets of any partner airline with their co-branded card.
• Where You Spend - The number or value of reward points that you will earn also depends on where you use your card. Using your card to pay for your electricity bill will earn you lesser points than it would when you swipe it at a restaurant to pay for a meal. The reason behind this is that the restaurant may be providing the your credit card company with a higher interchange fee in a bid to increase sales, whereas that may not be the case for a utility services company such as the power corporation.
• Special Occasion Spending - If you swipe your card to make purchases during special or festive occasions, you can get bonus points. For example, if you swipe your card on Christmas, you are entitled to extra bonus points. Some banks also offer bonus points to premium card holders on joining.

How to Redeem Credit Card Reward Points? 

The ways to redeem credit card reward points are mentioned below: 

Internet Banking  

• Log in using your username and password  

• Access options to view statements, pay bills, and redeem reward points  

• Choose from rewards like vouchers, merchandise, or cashback  

• Once selected, place the order; delivery usually takes up to 10 working days  

Customer Care  

• Contact your bank’s customer support  

• A representative will inform you about your points balance and redemption process 

• They can place a redemption request on your behalf  

Post (Offline Method)  

• Visit a nearby bank branch to collect the redemption form  

• Fill out the form and send it to the bank’s credit card division  

• Rewards are typically delivered within 10 working days  

• Points will be deducted from your account after processing 

Products and Gift Vouchers  

• Reward points can be redeemed for physical items such as electronics or home appliances  

• You can also choose e-vouchers from popular brands like Amazon, Myntra, or Croma  

Air Miles and Hotel Points  

• Ideal for frequent travelers seeking maximum value  

• Points can be converted into frequent flyer miles (e.g., Vistara, British Airways)  

• Alternatively, they can be transferred to hotel loyalty programs like Marriott Bonvoy or Accor  

Statement Credit / “Pay with Points”  

• Allows you to use points to reduce your credit card bill  

• Simple and convenient redemption option  

• Typically offers lower value per point compared to travel or voucher redemptions 

What are the Types of Reward Points?

The following are the different types of reward points offered by credit cards:

• Rewards points cards: On spending each rupees spent the card offers at least one point while some allow earning and redeeming rewards as cash back or points.
• Travel rewards cards: Enables users to earn travel rewards points or "miles" that come with travel perks which are often co-branded with hotel chains or airlines for brand loyalty benefits.
• Cashback cards: These cards offer cashback on purchases in the form of bonus category, flat-rate, or tiered rewards cards.
• Joining Rewards: By spending within a specified number of days, some credit card issuers offer credit rewards with welcome points to the customer.
• Regular Rewards: These rewards are offered for certain purchases, which is the base rate for rewards, and that will be mentioned in the credit card statement.
• Accelerated Rewards: These reward points are offered when spending on specific categories such as shopping, grocery, dining, travel, etc., for example bonus points can be earned at partner restaurants if dining-oriented card is used.
• Milestone Benefits: Milestone rewards can be earned which are bonus rewards that are offered on achieving a certain spending threshold within a specified time duration (usually an anniversary year).
• International Rewards: By spending on the card while abroad, customers can earn international rewards on this card.
• Bonus points: For spending a certain amount, bonus points can be earned, for example, per Rs.100 spent customers can earn up to 5 reward points and it will double for every Rs. 100 spent, if customer spends more than Rs.1.20 lakh using their credit card in a month.
• Renewal points: Loyalty points can be earned on renewing their credit card with the same issuer credit card customers.
• High-value Purchases: Reward points earned on spending made on this card are credited to the main credit card’s rewards account and supplementary cards can be availed for those family members who have attained 18 years of age.

What to Remember About Reward Points?

Here are the following details of that must be remembered about reward points:

Minimum Reward Points  

• A minimum number of points is required to qualify for redemption  

• Always check your card issuer’s eligibility criteria beforehand  

Expiration Date  

• Reward points come with a validity period, typically 2–3 years  

• Regularly monitor your points and redeem them before they expire  

Redemption Fee  

• Banks may charge a small fee for redeeming points  

• This is usually around ₹100 per redemption request  

Redemption Options  

• Points can be redeemed for gift vouchers, air miles, and more  

• Converting points into vouchers is generally simple and convenient 

What Can You Redeem the Reward Points For?

Browse the bank’s catalogue for issuing credit card reward points to see what products or gifts are offered in exchange for reward points, which could be accessories, clothes, books, beauty products, travel merchandise, and stationery. High-tech products like electronic gadgets are also available.

The following is the list of some popular merchandise items.

Gift Vouchers: This is a great way to obtain extra perks on loyalty as the reward points can be redeemed for e-vouchers of merchants, popular brands, or restaurants.

Air Miles: Some credit cards give air miles instead of reward points to the customers while some cards allow conversion of the accrued points to air miles and Air miles can be redeemed for air ticket purchases or to get a discount on air tickets.

Cashback: Customers convert the reward points to cashback that can be used for payment of outstanding balance on your credit card or for shopping with the credit card.

Donations: Reward points could be redeemed to donate to charity houses listed with banks and the charities you want to donate to. An equivalent amount of cash can be converted from the reward points to be given to the charity.

Transfer Points: A certain amount of reward points earned for their family members or friends can be transferred as allowed by the banks, provided they also hold credit cards from the same bank, for example Axis bank allows this.

How Can You Earn Maximum Credit Card Reward Points?

The following are the ways to earn maximum credit card reward points:

• Keep track of expiry of the reward points: plan accordingly to avoid losing the reward points as they have a two-year expiration date while some card cards do offer reward points that do not expire.
• Use a card that suits your lifestyle and financial requirements: Ensure that the reward system is suitable for your financial needs and their lifestyle, for example, customer must opt for a card that provides maximum benefits on dining who loves to eat out at restaurants.
• Redeem for maximum advantage: Make sure to select the card that provides maximum conversion rates as it may vary depending on the card. Depending on the category and specific products, the reward redemption rate will also change and hence it is vital to check the rates before redeeming.
• Do not spend only for earning rewards: Make sure not to overspend, as rewards on cards are bonuses as overspending will make it difficult to hefty charges on credit card bills.

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