Credit card Rewards are among the important elements to make a membership decision. A reward point is a benefit provided by banks to credit cardholders in exchange for just about every amount spent on their card. You may earn these points by using your credit card to make purchases.
It is very important to understand your credit card reward redemption policy as there are different ways to redeem your accumulated reward points.
That way, you can make sure that you can redeem rewards in your desired way which may be: air miles, gift cards, vouchers, coupons, cashback points, etc.
In this article, we will talk about everything you need to know about Credit Card Reward Redemption:
In certain cases, the rewards earned by you have a time limit within which you can redeem them. After the time limit provided by the bank’s policy, the rewards become obsolete. For Example Reward points earned on your Regalia card expire within 2 years of accumulation. To make the most out of your credit card you need to remember the reward’s expiry date in order to redeem timely.
Minimum Redemption limit:
A minimum redemption limit is a necessity to have a certain amount of reward points in your account for you to redeem them successfully. This is quite common in the case of Money Back or Cash Back cards. The limit can vary across the wide array of credit cards available according to different Credit Card Reward Redemption policies of the issuers.
While redeeming reward points the card issuer charges a reward redemption fees from the cardholder. Certain top rewards credit cards might give you the benefit of redeeming the reward points free of charge.
You can redeem your reward points for different categories as mentioned in the reward program. Some of the categories available for rewards redemption are:
- Travel: Air miles, Room miles, Dining discount vouchers.
- Gift Vouchers: Gift vouchers can be redeemed in-store or online at the retailer’s discretion. Apparel, books, groceries, lifestyle, cuisine, beverages, and more are all possible gift voucher categories.
- Cashback points: Reward points can be converted into cash points to convert into real money.
Special Credit Cards:
As we know there are many special credit card categories and one of the infamous ones is a Reward credit card. With some of the top reward Credit Cards, you can get so many perks while redeeming your rewards like:
- Little or no redemption fees.
- More categorical options to redeem points.
- Accelerated reward points, etc.
Under below are some of the modes that you can use to redeem the reward points are as follows:
- Online Shopping.
- Retail purchases.
- Hotel and flight bookings.
- Online platforms memberships, etc.
The redemption process is rather easy and if in case you are faced with any problem while doing so, you can easily ring up customer care to solve your doubts.
However, you must keep in mind that credit card reward points come with an expiry date. You can only redeem the reward points in the validity time frame, after that your accumulated reward points will get expired.
Additional Reading – How to use a credit card responsibly – 7 Tips