How to redeem your credit card points? 3 ways you need to know

The first best on using a credit card is earning reward points for tedious transactions. However, points alone wouldn't bring value until you effectively learn how you can use them. This guide will cover everything about redeeming credit card points.

Understanding credit card rewards points

Credit card issuers provide reward points as a way to encourage card usage. The credit card reward points essentially act like virtual money that you earn based on your spending. The type of card you have as well as the spending pattern will determine whether you will be receiving a few points or a kitty filled with points that can be redeemed for other rewards.

How to earn credit card reward points?

• With every use of a credit card transaction, one earns reward points.
• The accumulation rate of these points depends on the nature of the credit card and the issuer.
• Some credit cards reward you with bonus points once you spend a specific amount during a given year.
• In essence, premium credit cards often award more reward points than their reception counterparts.

Factors influencing reward points

1. Type of credit card: A person earns more points per transaction while the number of reward points basic customers can expect from these cards is limited to just one or at most two.
2. Co-branded cards reward points: Specific credit cards affiliated with hospitality establishments, airlines, or retail brands allow the earning of five to ten or more reward points on qualifying purchases.
3. Spending categories: Variously accrued points based on where and how purchases were made.
4. Event-related spending: Some cards pay bonus or additional points to transactions made on holidays or during promotional periods.

Ways to redeem credit card rewards points

1) Online way

• You may log into your online banking portal for your credit card provider.
• Provide an ID number and password.
• Check your options for redeeming rewards.
• Once you choose the product or voucher, you can finalize by confirming the order.

2) Offline way

• Visit a nearby branch of your bank and pick up an award redemption form.
• Fill this out and send it into the credit card division, with the proper information.
• Redeemable redemptions can take anywhere from 1-15 days to process.

3) Customer care

• Call customer service to find out your redemption options.
• Some of the issuers may require you to download and mail in a redemption form.
• This is worth warning you that the redemption some might come with processing fees.

Things to consider about reward points

1. Minimum redemption threshold: Check out for the least qualifying amount of points that are required for redeeming.
2. Redemption costs: Some issuers may charge fees to convert points into airline miles, gift cards, or any other kind of incentives.

In conclusion, select redemptions that offer the most value for the greatest advantage. Not all rewards are created equal, and some reward choices give far more return than others. If you keep a close watch on your point balance and redemption dates, you avoid losing out on worthwhile perks.

(Note: Using a credit card carries its own set of risks.)