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How Do Credit Card Reward Points Work?

By - Research Team    |    Updated On 18 July 2019 |    Loans and Credit Cards

How Do Credit Card Reward Points Work?

A credit card is plastic money issued by banks and credit card companies. It is loved by many citizens as it allows you to buy now and pay later. One of the main features of the credit card is, you can convert high-value purchases into easy EMIs. Credit card offers something called reward points, which makes it an enticing proposition. The main intention of introducing reward point is to encourage credit card users make more purchases using their credit cards.

Almost all credit cards issued by banks and credit card companies have a reward points program, which helps customers earn points on purchases made using a credit card. The way in which the cardholder earns these points varies across credit card issuers and banks.

Some companies offer one reward point for each purchase worth Rs 100, while some others offer a couple of reward points and yet others reward points, only if purchases are at a particular store.

Once you have accumulated a certain number of reward points, you can redeem these points and avail various benefits like cashbacks on future purchases, vouchers, air miles and so on. Credit cards with reward points are beneficial, so you must learn how it works.

See Also: What is Credit card and Debit card?

How to Redeem Credit Card Reward Points?

You must call the customer care if you are not aware on how to access this information on the bank's website. As we have mentioned earlier, you can redeem credit card reward points, once you have accumulated a certain number of them, as per the rewards program of your credit card issuer. You can check the number of reward points you have earned, by visiting the bank branch or credit card issuers website. 

In case you are not aware on how to access this information, you can contact the customer support of the credit card issuer. You will find the customer care number on the official website of the card issuer.

Please Note: Don't rely on the customer support number which comes up on Google search.

You can use your reward points in any of the following ways.


Cardholders are offered a catalogue of products or services across categories like clothing, footwear, eatables, stationery, accessories, travel merchandise, crockery, movie tickets, spa, and salon services and much more. Customers can exchange these products and services for reward points.


Credit card reward points may be redeemed for vouchers. You are given the vouchers of retail brands, which the bank is associated with. You have to make purchases at these stores, either online or offline. The value of these vouchers ranges from Rs 100 to a few thousand rupees.

See Also: Too Many Credit Card Advisor


Conversion of reward points into cash is another popular method of redeeming credit card reward points. The converted amount is credited to your account and it can be used to make payments. This is actually a great option, as you can save money. But, not all the credit card issuers offer this option.


Another way to redeem your credit card reward points is through cashbacks. Instead of receiving points for a purchase, you would receive a certain part of your purchase as a cashback.


This is a great option if you love traveling. Under this, banks and credit card issuers tie-up with travel booking portals or airlines to offer travel-related benefits to cardholders. On making purchases with the card, you earn air miles which can be used to book flight tickets.  Your reward points can be converted to air miles. You can redeem these air miles to buy flight tickets or enjoy discounts on flight tickets.

See Also: How To Use a Credit Card Wisely?

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