How to Earn and Redeem Credit Card Reward Points?

Credit card reward points serve as an incentive provided by financial institutions to users for each transaction made using a card. These points accrue as cardholders continue to use their card, which can be used to avail of many benefits. Read on to know the benefits of credit card reward points and how to earn and redeem them.

Benefits of Credit Card Reward Points

Following are some of the benefits of credit card points offered by financial institutions:

• Reward points can be converted into currency for transactions.
• Some credit cards allow payment of annual fees with reward points.
• Reward points can be used to get cashback.
• Points can be redeemed when paying for flights or hotel booking.
• The reward points ensure savings on fuel purchases from partnered fuel stations.
• You can select your products from a catalogue for reward points.
• Reward points can be used to get offers on movie tickets.

How to Earn Credit Card Reward Points?

Credit card companies typically offer reward points through the following methods:

1. Welcome Rewards: Some lenders greet new credit cardholders by awarding welcome points upon card activation. These points may constitute a substantial reward, often granted immediately upon card issuance or upon meeting certain spending criteria.

2. Regular Rewards: Some of the major financial institutions offer Rs. 100 for every Rs. 100 spent using your credit card. This rate can range from 1 point to 10 points or more per Rs. 100 spent.

3. Accelerated Rewards: Additional points can be earned for transactions made within specific categories, such as purchases at partner stores, dining at affiliated restaurants, entertainment expenditures, and more.

4. High-Value Purchases: Spending on significant purchases like jewellery, travel bookings, or holidays can yield higher reward points compared to regular expenditures.

5. International Rewards: Certain credit cards offer reward points for transactions conducted abroad, encouraging international use of these cards.

6. Bonus Points: Cardholders can receive bonus points upon reaching a specified spending threshold on their credit card within a given period.

7. Loyalty Points: Credit card companies often reward loyal customers upon card renewal, providing them with a substantial sum of points as a token of appreciation for their continued patronage.

8. Supplementary Cards: Additional or supplementary cards can be issued to family members aged 18 or above. These points are often clubbed with points earned on these cards credited to the primary cardholder's rewards account.

Also Read: How Do Credit Card Refund Work?

How to Redeem Credit Card Reward Points?

Unlocking the true value of your reward points lies in understanding the various ways you can redeem them. While specific options vary by program, here is a breakdown of common choices to maximise your rewards:

1. Travel: If you are a travel enthusiast, consider cards with dedicated travel portals. These portals allow you to redeem points for flights, hotels, or even car rentals.

2. Cashback: Not every card offers this, but statement credits essentially convert your points into cash, reducing your balance of reward points. This is a straightforward option for those who prefer immediate value.

3. Direct Retailer Redemptions: Some programs allow point redemption directly at specific online retailers. While convenient, carefully evaluate the point value compared to other options to ensure you are maximising your rewards.

4. Shopping Spree: Most issuers partner with online retailers, creating shopping portals where you can redeem your reward points to shop. While convenient, remember that this method often offers a lower point value compared to other options.

5. Charitable Donations: Some issuers offer a unique option to donate your points to a cause you care about. If this aligns with your values, explore this option to make a positive impact.

6. Gift Cards: While readily available, gift card redemptions typically offer lower point value compared to other choices. Consider this option only if the specific retailer aligns with your needs and offers a competitive exchange rate.

What is the Value of Credit Card Points?

Credit card rewards points can vary in value, depending on the financial institution or lender’s points system and how they are redeemed. For example, you use your credit card for everyday expenses and spend a total of Rs. 50,000 at the end of the month. If the card’s reward rate is 4 reward points for every Rs. 200 spent and 1 reward point is equal to Rs. 1, then you will have accumulated 1,000 credit card reward points. The value of your reward points is now equivalent to Rs. 1000. This means you have ultimately saved Rs. 1000 at the end of the month, even after all these expenses.

With the Poonawalla Fincorp Elite Credit Card, you can get a 1:1 rate of rewards point redemption, meaning 1 reward point is worth Rs. 1, although the financial institution may adjust this value at any time.

Benefits of Choosing Poonawalla Fincorp eLITE Credit Card

The benefits of choosing the Poonawalla Fincorp eLITECredit Card are mentioned below:

• Lifetime Free Credit Card: You will get a credit card with no joining or annual fee.
• Scan & Pay: You can link your credit card to any UPI app for easy transactions.
• Earn More Rewards: You get 2.5 Reward Points on E-commerce transactions.
• Exciting Waivers: You will be eligible for a 1% fuel surcharge waiver.
• Movie Offers: Enjoy buy one and get one movie ticket on BookMyShow each month.
• Milestone Benefit: You get 3000 Reward Points on spending Rs. 4,00,000 every year.
• Discount on EMIs: You can avail of discounts on paying credit card EMIs.

Also Read: Credit Card Future in India: What's in Store?

How to Apply for a Poonawalla Fincorp IndusInd Bank eLITE RuPay Credit Card?

Here are the two methods to apply for a Poonawalla Fincorp credit card:

Method 1: By visiting the Poonawalla Fincorp IndusInd Bank eLITE RuPay Credit Card page and clicking on ‘Apply Now’.

OR

Method 2: By visiting the IndusInd Bank website.

To Conclude

Credit card reward points can be a powerful tool for you when utilised effectively. They offer a unique opportunity to earn rewards on everyday expenses. While the specific card you choose will influence your earning potential and redemption options, the overall benefits are profitable. Apply for the Poonawalla Fincorp IndusInd Bank eLITE RuPay Credit Card and unlock the best reward points along with other benefits.

Frequently Asked Questions

1. What is the use of credit card reward points?

Credit card reward points offer incredible flexibility, allowing you to choose various options for redemption such as travel miles, airline tickets or hotel bookings, mobile or DTH recharge, gift cards or vouchers, merchandise, cashback, movie tickets, annual fees, charities, fuel, etc.

2. Can I convert my reward points to cash?

While not all lenders offer this option, Poonawalla Fincorp IndusInd credit card allows you to convert your points into cash directly credited to your account. Check your specific card's program details to see if this exciting feature is available.

3. How are reward points calculated?

The value of a single point depends on your card issuer. Poonawalla Fincorp eLITE credit card, one point might be worth Rs. 1, but other cards might offer different conversion rates. Always refer to your statement or online account for the most accurate point-value information.

Disclaimer

We take utmost care to provide information based on internal data and reliable sources. However, this article and associated web pages provide generic information for reference purposes only. Readers must make an informed decision by reviewing the products offered and the terms and conditions. Loan disbursal is at the sole discretion of Poonawalla Fincorp.
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