You are missing out on benefits worth thousands of rupees! Here’s how to get the full advantage of credit card reward points..

The use of credit cards is on the rise in the country. Every time you swipe your credit card, you earn reward points. But are you truly making the most of them or deriving their full benefit? In reality, most people overlook these points, leaving them to go to waste. Some fail to redeem them before they expire, while others impulsively spend them on low-value options right away.

The real value of a credit card lies not just in earning points but in redeeming them effectively. Banks offer various options such as cashback and air miles. If you know the right strategy, you can double the benefits from the same amount of spending.

**Understand the mechanics of reward points**
Typically, banks award points for every ₹100 or ₹150 spent. However, remember that not all points hold the same value. You might redeem points for a low-value item (like a watch or earphones), whereas the same points could secure a complimentary flight or a high-end hotel booking. Therefore, always assess the value before spending them.

**Don't spend points without comparing options**
Avoid the mistake of immediately redeeming points just because you see a gadget or item in a catalog. Often, flight tickets, hotel bookings, or branded gift vouchers offer better value than merchandise. Some banks even allow you to adjust these points against your credit card bill. So, take the time to compare your options.

**Use the right card for the right purpose**
Every credit card has its own strengths. Some offer higher points for online shopping, while others reward spending on fuel, dining, or travel. It is wise to use a card for the specific purpose it was designed for. Some people even maintain separate cards for different categories to maximize their benefits.

**Don't overspend just to earn points**
This is the most common mistake. People often end up buying things they do not need just to earn ‘bonus points’ or avail of ‘special offers.’ Remember, reward points represent only a tiny fraction of your total spending. If you overspend in pursuit of these points and fail to pay your bill on time, the hefty interest charges will make the value of those reward points seem negligible.

Keep an eye on expiry dates.
Credit card points do not last forever; they expire after a certain period. Therefore, make it a habit to check your points balance every 2–3 months. Also, stay updated on the bank's policies, as they frequently revise the value of the points.

Disclaimer: This content has been sourced and edited from News18 Hindi. While we have made modifications for clarity and presentation, the original content belongs to its respective authors and website. We do not claim ownership of the content