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Your Guide to Smartly Redeeming Credit Card Reward Points

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Created on
April 3, 2023


What’s Inside

Wondering what are reward points on credit cards and how smart redemption of these points can prove to be beneficial? Read this blog to know more.

What Are Credit Card Reward Points?

Reward points on a credit card are points of credit that accumulate in your name for a specific frequency or volume of transactions. Once you have accumulated enough points, you can redeem them to shop instead of spending your own money.

Credit card reward points are a type of incentive given by credit lenders, banks and NFBCs that encourage you to make purchases using your credit card.

Maximising Your Credit Card Reward Points Benefits

You can modify your spending behaviour and actions to leverage the rewards program of your credit card provider to maximise the benefits of your reward point spends.

  • Select a Credit Card that Matches Your Lifestyle

You will make the most of your credit card only if you pick one that complements your lifestyle. Credit cards are often oriented towards specific spending behaviours like shopping, travel, entertainment, luxury living, etc. Keeping your lifestyle needs in mind, selecting a credit card will maximise your reward benefits.

  • Take Advantage of Welcome Bonuses

Credit card providers offer lucrative joining bonuses after you have activated the credit card. By fully availing of your welcome bonuses, you may acquire x2, x5 or more times the reward points for every rupee you spend.

  • Purchases on Birthday, Anniversary or Other Special Days

Depending on the lender and type of credit card, there are special offers on certain days on which you can get x10 credit card reward points. Be mindful of such special days in advance, and make big purchases on them.

  • Benefit from Partner Programs, Mall Offers and Branded Deals

Many credit cards provide access to golf courses, clubhouses, airport lounges, etc. They also have exclusive offers with many popular luxury brands, restaurants, and hostels. Some have also partnered with e-shopping portals like Flipkart and Amazon. Understand what these are to earn more credit card points when you make your purchases.

  • Combining Points and Cash to Purchase High-value Goods

Lastly, you should keep track of your points and accumulate them for high-value goods so it is easier to shop for them without taking costly EMIs. It is one of the best ways to use reward points.


While you should aim to maximise your reward points benefits, you must not be in a hurry to spend money to earn points. This may lead to frivolous shopping. You should also check if the reward points come with an expiry date. If an annual fee is involved, you should review your spending to determine whether you are saving money. It’s a good practice to regularly evaluate your credit card reward points and redeem them wisely.

Opt For the Unmatched Fi-Federal Credit Card

Are you looking for a credit card that gives you attractive credit card reward points? Look no further than Fi. If you're looking for a credit card that gives you the best bang for your buck, the Fi-Federal co-branded credit card is what you need. With this card, you're assured of a 2% valueback through rewards. But that's not all, as you'll also get 5x on your top 3 brands, 2x on all partner brands listed in the Fi Catalogue (including Amazon, Netflix, etc.) and 1x on everything else, including rent and fuel. Moreover, you can easily track your spending on the app and make informed financial decisions.

Frequently Asked Questions

1. How do credit card reward points work, and how can I earn them?

Every time you make a purchase, you get a certain number of reward points, e.g., 1 reward point for every Rs. 150 spent. You can redeem them instead of spending your money on purchases.

2. Are all credit card reward programs the same?

Some reward points are worth more, while some are worth less. With some lenders, you must pay a small fee every time you use your reward points. Moreover, the bonuses and offers vary too.

3. What strategies can I use to maximise credit card reward points?

You can start by choosing the right card that meets your lifestyle needs. Spending over a certain amount or making purchases on particular days will also maximise your credit card reward points.

4. What redemption options are available for credit card reward points?

The most common ways to redeem your points are through airline tickets, hotel stays, cash backs or paying for purchases.

5. What are some tips for avoiding pitfalls when redeeming credit card reward points?

One of the most common pitfalls is not checking the actual value of the reward points, their expiry date, or if there is a redeeming fee.


Fi Money is not a bank; it offers banking services through licensed partners and investment services through epiFi Wealth Pvt. Ltd. and its partners. This post is for information only and is not professional financial advice.
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Your Guide to Smartly Redeeming Credit Card Reward Points


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