4 Questions To Ask About Your Credit Card Rewards Program

If you are someone who frequently shops or travel, you must be aware that some credit cards offer higher benefits, at certain brands or merchants. So, while choosing a rewards credit card, you must analyze your needs and check whether the card offers decent rewards across different purchases as per your lifestyle. It is important to evaluate where you can earn better rewards and channelize your purchases accordingly.

Also, if you are loyal to a specific brand, then having a co-branded credit card makes more sense rather than having a card that offers similar benefits across multiple brands. Credit card issuers often launch co-branded cards in association with leading fashion brands, airlines or others. These cards offer exclusive discounts and benefits when you make transactions at the partnered brand. For example, if you are someone who frequently shops online from Amazon, then having Amazon Pay ICICI Credit Card will help you maximize your benefits and allow you to save more on your transactions at Amazon and its partnered merchants.

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Credit card issuers allow you to redeem the earned reward points against multiple options as per your requirements. You can redeem the reward points against multiple categories like Air Miles, cash credit, flight & hotel bookings, gift vouchers, etc., depending on your card issuer. So, before applying for a credit card you must be aware of the redemption options. For instance, with Intermiles HDFC Signature Credit Card, you can earn Intermiles, which can only be redeemed against your bookings through Intermiles. On the other hand, HDFC Regalia Credit Card lets you redeem your reward points against Air Miles, flight & hotel bookings, products & vouchers through its rewards portal or against cashback as  per your preference.

So, if you are someone who frequently travels, you can go for cards like Intermiles HDFC Signature, otherwise, there is no point in getting a rewards credit card that allows you to redeem your rewards only against Air Miles. On the other hand, if  you prefer to avail cashback instead of Air Miles or bookings, you can opt for cards like HDFC Regalia Credit Card. Therefore, it is important to analyze whether the redemption options align with your lifestyle or not. You should always choose a card that comes with multiple redemption options if you are not loyal to a specific brand.

Suggested read: How to Redeem Credit Card Reward Points | Check Eligibility for Top Cards

There is no doubt that most of the card issuers allow you to redeem reward points against numerous options. But, you must remember that 1 reward point is not equivalent to Re. 1 or 1 Air Mile in every case. For instance, for HDFC Regalia, 1 Reward Point is equivalent to Re. 0.20 or 0.5 Air Mile. So, you must check whether the value provided at the time of redemption will help you maximize your benefits or if you are just earning rewards for the sake of it.

Also, not every card issuer offers the same redemption value. With HDFC Regalia, you can redeem 1 RP at a value of Re. 0.50, whereas, SBI Card allows you to redeem 1 RP at a value of Re. 0.25. Besides this, some premium credit cards offer a value of 1 RP = Re. 1.  You must, thus, analyze the overall redemption value of the reward points as per your requirements. Try to opt for a card that offers 1:1 redemption value, but if it is not possible, choose a card that offers the best redemption value according to your needs.

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The entire point of making purchases through your credit card is to capitalize on the reward points they offer. But, most of the reward points come with validity. If you fail to use the accumulated rewards within the stipulated time, you will lose all the earned reward points. After the given validity, the earned reward points become null & void and you will not be able to redeem them. However, some premium credit cards offer reward points that do not have an expiry.

So, when choosing a credit card, opt for the one where your rewards do not get expire. However, if you already have a credit card that offers reward points with a validity period, you must keep a tab on your reward points so that they can get redeemed before they expire. You can log in to your card issuer’s net banking account to check your rewards expiry date and make sure that your points are not wasted.

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Additional tip: Consider the fees linked to your rewards credit card

Besides choosing the right credit card, it is important to analyze whether the benefits provided on the card justify the annual fee. Most of the rewards credit cards come with an annual fee, some cards even charge a fee when you redeem your reward points. You should read all the terms and conditions carefully while applying for a card to check whether the linked fees & charges are suitable for you.

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Here are some of the best credit cards that will help you earn decent reward points on your transactions:

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