How to get the best out of card reward programme

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Reward points are allocated depending on the amount spent on the credit card

REWARD points are an important component of the use of the credit card and it is important for the individual to ensure that they are tackling this in a proper manner. One of the ways to look at the entire situation is to see the manner in which the card points actually arise and then go all the way to the redemption of the points.

This will ensure that the maximum benefit actually comes out at the end of the day for the credit card user who will be able to end up with something extra from their credit card. Here is a look at the issue and the manner in which this can be handled.

Reward points:

 

Whenever an individual uses a credit card, the card-issuing bank seeks to offer some extra benefits as an incentive to use the card more.

One such route is reward points. It is significant to note that these can arise for both credit as well as debit cards, but here we will focus only on the credit card aspect. The nature of the rise of the reward points is such that these are allocated depending upon the amount spent on the credit card, so there is a level that is fixed for each card. This is something that everyone has to check before they end up making a decision related to credit cards based on the point aspect.

This could be something like two points for every Rs 100 spent, or three points for every Rs 200 spent, and so on. The simple logic is that if number of points that are allocated are higher for usage, then this is better than a situation where a lower number of points are available.

Accumulation:

 

The next part of the process comes with the accumulation of the points over a period of time so that these can be used for the purpose of different spends in the future. There has to be a clear understanding of what is happening as far as the accumulation of the points is concerned.

There are various choices that are present with different credit cards and this aspect has to be understood carefully. For example, in some credit cards the points would get automatically converted to some air miles or some such area and hence, in this case, there is no accumulation that occurs due to the fact that these are already being dealt with.

In others they will accumulate and can be redeemed against gifts. Redemption: The final act comes with the redemption of these points. Depending upon the nature of the credit card, bank will have a catalogue that will list out the number of points that will be required for the purpose of redemption of the points against some specific gift.

There is a list of such items that will be present and the individual can choose from this list. One way in which they can get the benefit of a larger choice of end items is by looking at gift vouchers from leading stores across the country.

 

These are also available and if the points are redeemed against such vouchers then there is an unlimited range to choose from for the individual.

The exact nature of the working of such a situation in terms of the points required for this would also have to be seen against the value that is actually received from the entire effort. This would ensure that there is a proper decision being made at the end of the day.

The redemption effort should focus on the fact that the individual should get the maximum out of the redemption.

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