What is reward points in credit card? Are they useful?
Hi Arpita
When I use my credit card, I do not just make payments, but I earn something back. These are called reward points, and they act like bonuses for every eligible transaction I make.
Depending on your card, you might earn them for shopping, dining, travel, bill payments, or even big-ticket purchases. The more you spend, the more points you collect.
Different cards offer different types of rewards such as cashback, travel miles and partner discounts. You can redeem plain reward points for vouchers, merchandise, or bill payments.
For instance, a shopping-focused card might give 5X points at online stores, whereas a travel card could give free lounge access and miles for flights.
To make the most of credit card reward points, you should always choose a card that matches your lifestyle. If you travel often, go for a travel rewards card. If you shop online a lot, pick one that offers extra points for e-commerce spending.
I also keep an eye on expiry dates and redeem my points for high-value rewards. Plus, I never overspend just to earn them.
When you use them wisely, credit card reward points can turn everyday expenses into valuable savings. And guess what, it can even fund your next trip with no extra cost.