Credit card usage has increased in India over the last few years. According to a survey, the number of such cards in India increased by 8.4 million between August 2017 and 2018. The study reveals a 34% increase in the usage of credit cards through POS systems. The modern Indian consumer is starting to recognise the utility and benefits of using a credit card. Aside from the ready availability of funds, one must also consider the best rewards of credit cards, like the redeemable point system.
What are reward points?
Reward points are a system in most credit cards through which you can redeem the price of purchase when using your card. Before you can redeem these points, you need to accumulate them. You earn points every time you use your credit card to buy products and services.
Some major cards, such as the Bajaj Finserv RBL Bank SuperCard, offers reward points to avail the card itself. You can save up to Rs. 55,000 through the point system of this card in a year alone. However, the point system varies between one credit card company to another.
5 ways to take advantage of the best rewards of credit cards
If you want to make the most of credit card rewards, here are some of the things against which you can redeem your points.
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Vouchers- Many financing companies provide vouchers in the form of reward points. These vouchers are redeemable at select partnered outlets. Therefore, check whether you have vouchers available to reduce your expenses while shopping.
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Cash- The best rewards of credit cards from top issuers come with an option to convert them into cash. The cash redeemed from the points is directly added to credit card account.
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Miles- If you are a frequent traveller, you can benefit quite a lot from accumulating air mile reward points. The best travel rewards of credit cards come from the flier miles on offer. You can redeem the points to avail discounts on flight tickets and even hotel reservations. This feature is one of the primary credit card benefits for travellers.
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Cashback- In some cases, credit card companies return the money you spent on a purchase as a form of redemption of reward points. You can find these cash back funds waiting for you in the account linked to your card.
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Donations- Financing companies allow you to donate money to charities by using these points. In such a case, you do not pay any money, but convert the pints into the donation.
The expiration date for reward points
Most individuals do not know that their credit card points have an expiration date. The exact tenor can vary between the various companies. However, if you want to avail the best rewards of credit cards, you should not wait more than a year to do so. Using these points regularly is often the most beneficial to you, rather than waiting too long.
A crucial aspect of how to redeem your reward points is to understand when to do so. Such points often come with expiries which a user should be
Therefore, make sure you check if you have available points for use and plan a way to spend them wisely.
How beneficial are reward points?
The points you earn can help you a substantial sum each year, depending on how frequently you use the card in question. Therefore, to earn higher rewards, use the card more. If you are a frequent traveller, you can use the card for expenses during trips, instead of your savings.
Bajaj Finserv provides pre-approved offers to make availing loans easier and quicker. These offers are available on secured loans, like home loans, as well as unsecured loans, like credit cards, personal and business loans. You can check your pre-approved offer by providing your name and phone number.
Try to maintain a good credit score so that you can avail cards with a greater credit limit. You can spend more using such high-valued cards, which in turn, will lead to greater reward earnings.