Credit cards: When you use a credit card frequently to make payments, it is common to accumulate plenty of reward points. These reward points can be redeemed for various purposes, including booking flight tickets, hotel stays, or purchasing gift cards.
Although different credit cards have different rules governing their point systems, here is a lowdown on the different ways to encash reward points.
How to encash reward points?
I. Travel purposes: Reward points can be used to book flights or hotels through the program’s travel portal or partners.
II. Convert to Cash: Some credit card programs allow you to convert reward points into cash as a direct deposit to your bank account or as a credit to offset your card balance.
For example, HDFC Bank MoneyBack+ Credit Card allows CashPoints earned to be redeemed against the statement balance at the rate of 1 CashPoint equals ₹0.25. Cardholders can do this via Net Banking login or a physical redemption form
III. Gift cards: Credit card reward points can be redeemed for gift cards or e-vouchers from retailers, restaurants, or online platforms
IV. Purchase through partners: Several credit cards run programmes that enable cardholders to buy a range of products (including electronics and clothing) with reward points.
For example, Kotak Mahindra Bank credit card reward points can be used to shop across the products and range given on the website. These include Portronics, JBL, LG, Faber, and American Tourister.
V. Shopping at marketplaces: One can encash the reward points for shopping at online marketplaces such as Amazon and Flipkart.
VI. Bill payment: Some credit cards also allow cardholders to make payments of utility bills.
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Disclaimer: Mint has a tie-up with fintechs for providing credit; you will need to share your information if you apply. These tie-ups do not influence our editorial content. This article only intends to educate and spread awareness about credit needs like loans, credit cards and credit score. Mint does not promote or encourage taking credit, as it comes with a set of risks such as high interest rates, hidden charges, etc. We advise investors to discuss with certified experts before taking any credit.
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