Every swipe with Credit Cards rewards cardholders for their purchases. Evolved beyond transactional tools, Credit Cards now offer a world of exclusive rewards and benefits that can notably enhance your lifestyle and financial well-being.
However, understanding the technicalities of Credit Card reward points can be intimidating, especially for those who have just got a new Credit Card or are looking to apply for the best Credit Card.
This beginner’s guide explains everything about Credit Card reward points, providing clarity on how to turn daily purchases into rewards and enjoy exclusive Credit Card benefits with ease.
The basics of Credit Card reward points
Credit Card reward points are a type of incentive that is earned by Credit Card holders for using their cards to make purchases.
As a part of loyalty programs, these reward points are designed to reward customers for eligible transactions, encourage Credit Card usage and provide added value to cardholders.
Credit Card reward points vary across different cards (such as Fuel Credit Cards, co-branded cards, and premium Credit Cards) and card issuers. Some Credit Cards offer higher reward points, and some provide lower reward points for equivalent spending.
Therefore, to maximise rewards, it is essential that you compare the best Credit Card options and choose the one that offers reward points on transactions that match your spending patterns.
Ways to earn Credit Card reward points
Earning Credit Card reward points is simple. While each Credit Card has its own reward structure, there are a wide range of activities and transactions that enable cardholders to earn reward points, such as:
- Welcome benefit: Make transactions from your Credit Card within the specified time frame from card issuance and earn reward points in the form of welcome benefits.
- Everyday purchases: Use your Credit Card for routine transactions related to groceries, gas, entertainment, dining, online shopping, utility bills, etc and turn daily expenses into valuable reward points.
- Travel bookings: Book travel-related services, such as flights, hotels and more and get redeemable reward points for other travel perks.
- Fuel transactions: Use your Fuel Credit Card on every fuel transaction at partner fuel outlets and enjoy accelerated reward points.
Ways to redeem Credit Card reward points
- Cashback: Redeem your best Credit Card reward points for cashback and get some portion of your spending credited back to your account.
- Vouchers: Get your best Credit Card reward points converted into vouchers, including shopping, dining, entertainment, and travel options, and enjoy exclusive discounts.
- Curated products: Browse through your Credit Card issuer’s rewards store and use your reward points to make purchases.
- Air miles: Transfer Credit Card reward points into air miles and redeem them against travel-related expenses, including flight bookings, hotel stays, car rentals, etc.
Credit Card reward points: Common mistakes to avoid
- Ignoring Credit Card reward points terms and conditions.
- Failing to redeem the best Credit Card reward points on time, i.e. before the expiration date.
- Focusing on reward offers that do not align with your spending habits.
- Missing welcome benefits and promotional offers on the best Credit Cards.
- Shopping from non-partner shopping portals.
- Losing track of reward points balance.
- Redeeming reward points quickly without maximising their value.
Conclusion
From frequent flyers to shopaholics, the best Credit Cards offer reward points that cater to diverse interests and spending habits.
These reward points turn everyday purchases into earning opportunities, enabling cardholders to offset their spending, experience exclusive travel services and enjoy discounted shopping.
