How to Earn through Credit Card Reward Points? - Make Money Online

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How to Earn through Credit Card Reward Points?

Did you know that Credit Cards can help you save money? Yes, it does sound unbelievable, but you can earn while you spend money on your Credit Card. In this article, we will give you all the information on how you can earn Reward Points on your Credit Card.

What are Reward Points?

Whenever you take a Credit Card, you are loaning money from your service provider. In other words, when you purchase your Credit Card, the bank (your Credit Card’s company) earns an ‘x’ amount. This is called the interchange fee and is received from the merchant’s outlet. This fee varies between 1% to 2.5% and depending on the volume of the card usage. The outlets negotiate this fee with the bank.

To promote card usage, the card issuing companies offer Reward Points on card transactions. So, as you use the Credit Card, you accumulate reward points, and you can buy amazing gifts in exchange for RPs.

How to earn Reward Points:

You can earn your Reward Points in various ways, such as:

1.      On grocery shopping- The next time you go grocery shopping, remember to use your Credit Card. Grocery shopping is something that you do every month (and sometimes even during the week!) and this will help you accumulate the points. You can save 10-20% on your grocery purchase using Credit Cards. One great pick for the same is SimplySAVE SBI Credit Card.
2.      Eating out- Most restaurant chains are tied up with the Credit Card companies, as such, making your payments via the card can help you earn points.

3.      Online shopping- If you are a regular online shopper, this could be an excellent opportunity for you to earn a good number of points.
4.      High-value purchases- Booking flight tickets, or paying for travel package plans or high-value purchases like jewellery can be your ticket to earning big points.

5.      International travel- A number of Credit Cards can be used internationally, and these too can help you accumulate points that can later be redeemed from the card's Reward Program Catalogue.

How do you know how many points you can earn?

Every card has a different system of rewarding points, and it depends on certain factors:
·         Your card variant- There are different types of Credit Cards available, and depending on that, you could earn reward points. So if you have a basic card, spending Rs. 100 – 150 could guarantee you a few points. However, if you have a Platinum or Gold Card, the same spending could give you more reward points!

American Express Membership Rewards Credit Card and Standard Chartered Platinum Rewards Credit Card are two great rewards fetching cards.

·         Co-branded cards card companies generally tie up with premium lifestyle brands in industries such as Airlines, jewellery or petrol pump and large stores and offer bigger reward points with the spending at a partner retail outlet.  

·         Swiping your card on special occasions – Keep your eye out for occasions like Diwali, Valentines’ Day, etc. can also be a great way to earn maximum points on your card. Most card companies will offer extra reward points when you use your Credit  cards during these events.

How to redeem your reward points?

1.      Refer the Rewards Catalogue

Most banks will have a rewards catalogue that has several items, and once you have the requisite number of points, you can buy anything you like. Options are in plenty and could be gadgets, clothes, footwear, accessories, movie tickets, spa vouchers – the list is endless. Before Taking a Credit Card, make sure that you do have a quick look at the rewards catalogue – it’s easier to make a choice that way.
2.      Get Gift Vouchers

Sometimes, some banks will offer vouchers in lieu of your Reward Points – movie ticket vouchers, salon vouchers, vouchers for shopping at stores or vouchers for online shopping.

3.      Earn Air Miles

Another very useful way to redeem your points is to exchange them for Air Miles. For those who tend to travel a lot, these air miles can come in very handy. Not only can these miles be used to payment of Air Tickets, but you can also get air tickets at a discounted price with the air miles.

4.      Win Cashback

Another very popular way you can redeem your points is with cashback on the card.  Some banks do not offer the reward points; instead, if you make a purchase, they will send a part of this purchase amount back to your account. So you are effectively paying a lesser amount. You can effectively use this cashback for payment of your card outstanding as well. Two great cards in the segment are Citibank Cashback Credit Card and HDFC Freedom Credit Card.

So, Credit Cards a great way to earn money as your splurge.
But before you go ahead, use a word of caution!

Never use your Credit Cards to earn points. For, the range of benefits depends solely on what each card company offers and may not be the same for every company. You should also remember that these reward points come with an expiry date and you should redeem them on time. So, you must always use your Credit Card with discretion, and you will be a happy shopper!
How to Earn through Credit Card Reward Points? How to Earn through Credit Card Reward Points? Reviewed by RAWAT on 9:36 PM Rating: 5