Things You Need to Know About Credit Card Reward Offers
Credit card reward programmes are designed to encourage spending by offering points, cashback, miles, or vouchers. However, understanding how these rewards work is essential to maximise value and avoid unnecessary costs.
Below are 10 important things to know about credit card reward offers.
1. Understand How You Earn Rewards
Reward points are typically earned based on spending categories such as travel, dining, groceries, or online shopping. Some cards offer accelerated rewards on specific categories and standard rewards on others. Review the earning structure before using the card extensively.
2. Know the Redemption Process
Rewards can usually be redeemed:
- Through internet banking or mobile banking apps - Via the issuer’s rewards portal - By contacting customer care
Check the available redemption options such as vouchers, merchandise, statement credit, or travel bookings.
3. Check Expiry of Reward Points
Many reward points come with a validity period. Unused points may expire after a fixed duration unless the card offers lifetime validity. Always verify expiry rules.
4. Choose a Card That Matches Your Lifestyle
Select a card based on your spending habits. For example:
- Frequent travellers may benefit from air miles cards - Online shoppers may benefit from cashback or e-commerce rewards - Fuel-focused users may prefer fuel surcharge waiver cards
Choosing the wrong reward structure reduces overall benefit.
5. Avoid Managing Too Many Cards
Holding multiple reward cards can increase complexity. Different billing cycles, reward rules, and fees may make management difficult and increase the risk of missed payments.
6. Explore Travel and Air Mile Benefits
Many reward cards allow conversion of points into airline miles. If you travel frequently, cards offering higher mile accrual rates may provide better value.
7. Consider Virtual or Digital Cards
Some issuers offer instant virtual cards for online purchases. These cards provide immediate access to rewards and can be useful for digital-first users.
8. Check If Points Can Be Transferred
Certain programmes allow transfer of reward points to airline or hotel loyalty programmes. This flexibility may enhance value if used strategically.
9. Understand Cashback or Cash Conversion Options
Some credit cards allow reward points to be converted into cashback or statement credit at a predefined rate. Compare the redemption value before converting.
10. Review Redemption Charges and F Fees
Certain issuers may charge:
- Processing fees - Shipping fees for merchandise - Reward redemption fees
Always check applicable charges before redeeming points.
Conclusion
Credit card reward offers vary widely across issuers and card types. Evaluating earning rates, redemption options, expiry terms, and associated charges helps in selecting a card that aligns with your financial needs and spending behaviour.
Disclaimer
This article is provided for informational purposes only and does not constitute financial advice or endorsement of any specific credit card issuer. Reward structures, eligibility criteria, fees, and redemption policies vary by bank and card type and are subject to change. Always refer to the official terms and conditions of the respective card issuer before applying or redeeming rewards.
