How to Make Most of Your Credit Card Rewards Program?

Updated on: 04 Jan 2024 // 4 min read // Credit Cards
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One of the stand-out benefits offered by your Credit Card is the rewards program. As a matter of fact, every Credit Card comes with a tied-up rewards program that entitles you to various benefits on particular transactions. But some individuals find it difficult to maximize this potential of their Credit Card due.

Well, knowledge is power, and thorough know-how of your rewards program will ensure that you do not miss out on any of the well-deserved benefits on your plastic money.

Here are some useful tips to help you make the most of your Credit Card Rewards Program:

Select the right Credit Card:

More & more bank and card issuing companies are launching different Credit Cards according to the varied lifestyles of their customers. These cards reward users on specific transactions. Though, one thing must be kept in mind that while one card might be good for one type of customer, but might not be as beneficial for another customer. It is, therefore, important that you choose a Credit Card that comes with a Rewards Program that suits your spending style.

For instance, if you do not travel frequently, then there is no point in getting a Travel Credit Card. Likewise, if you do not watch movies, you should not get a lifestyle Credit Card offering offers on booking movie tickets. Thus, choose the Credit Card that rewards you with bonus points on transactions that you frequently undertake, as you stand to earn more Reward Points this way.

Understand the rewards program:

As different Credit Cards from even the same bank have different Rewards Programs, you need to understand about the RP program available with your particular Credit Card. For maximizing the benefits from the Rewards Program of your card, you should go through the terms and conditions of the card thoroughly.

Most Credit Card companies send a booklet along with the new card that specifies the details about the Rewards Program. Otherwise, you can log-on to the online Credit Card account and understand the intricacies of the Rewards Program. For instance, if you are using a Yes Bank Credit Card, you can log-on to your retail banking account to understand the Yes Rewardz program applicable to your Credit Card. This will help you plan your transactions for maximizing the reward points, especially if you are using multiple Credit Cards from different programs.

Make use of the bonus reward points:

Credit card companies offer you the chance of earning bonus Reward Points on various transactions and events, such as:

  • On signing up for a new Credit Card.
  • On payment of joining fee or renewal fee.
  • On transactions done in birthday month.
  • On specific transactions at partner outlets.

These bonus Reward Points can add up to a significant total and can, in turn, entitle you to various benefits. So, make sure that you pay close attention to the available bonus points and plan your transactions accordingly. For instance, if you are awarded a sign-up bonus of 10,000 reward points, then you need to use the Credit Card for a specific amount within 90 days of receiving it; otherwise these points will lapse.

Plan your purchases and repayments:

One of the best ways to maximizing the benefits of the Reward Points Program is to plan your transactions. You can use your Credit Card to pay for all your purchases at online platforms as well as retail merchant establishments, including utility bills, grocery bills, and other expenses. Then, set the repayment to the auto-pay mode for the full amount due. This way, you will be able to enjoy an interest-free period of up to 50 days and earn a significant number of Reward Points. But make sure that you repay the entire amount due before the last date because otherwise, you will have to incur significant interest charges, which will be much higher than the reward points earned. If you are using more than one Credit Card, then you need to use them according to their Reward Points structure. Then, there are some transactions that do not offer any Reward Points, so it is advisable that you pay for them through cash instead of the card.

Use partner platforms:

Many Credit Card companies and banks have their own online shopping platforms, while others have tie-ups with particular online outlets. When you use the Credit Card at any of these platforms, not only do you get exclusive deals but also stand a chance to earn bonus Reward Points. So, before making a high-ticket purchase, make sure you check the availability of the same on these partners or exclusive online platforms, as the benefits available are too good to ignore. Moreover, many Credit Cards offer bonus points and discounts on movie ticket purchases from select outlets and dining at partner restaurants, so make use of the opportunity. Some Credit Cards also offer the option to convert the Reward Points into Air Miles or cashback, so you can explore these possibilities also.

Redeem reward points before they expire:

One thing about Reward Points that you must know is that in some cases, they come with an expiry date. This means that after a certain period, usually 2 years, the Reward Points will lapse. So, you must keep track of the expiry date of the Reward Points and use them as soon as you can. Though, there are some exceptions to this as well. For instance, if you are using a Citibank Credit Card, then the reward points are evergreen and will never expire. But it is highly advisable to do not let the RPs go waste just because you forgot to redeem them.

The benefits on offer through the Reward Points Programs of different Credit Cards are definitely worth noticing. So, make sure that you remember these points and act on them to maximize the benefits of your Credit Card reward program.

Also Read: 5 Things To Do When You Get a New Credit Card in Your Hands