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How to Use Your Credit Card Reward Points

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Created on
February 8, 2023


What’s Inside

The number of credit cards being issues in India is growing at roughly 20% year on year. This is good news for you. Because, the more competitive the market, the more attractive the rewards.

Largely, credit card companies reward you for using their credit cards because they want you to find more reasons to make all your purchases on a credit card.

What Are Reward Points in Credit Cards, and What Do You Gain? 

Every time you swipe a credit card, you may earn some points. You may just earn a single point or more. As you keep swiping your card, you earn more and more points. These points accumulate in your credit card account. What are these reward points? Well, they could be either earn cash credits, discounts on merchandise, or gift vouchers. 

Using your credit card Points

  • In some cases, when you redeem your points, you get a cash credit on your card account. This cash credit can then be adjusted against whatever you spend later.
  • Your credit card reward points may expire, and you should redeem them before they do.   

How to Use Credit Card Reward Points For Maximum Benefits

You can use your credit card reward points in the following ways: 

  • As a cashback (if applicable)
  • For vouchers 
  • For miles to buy flight tickets

Summing up 

Credit cards are a pretty handy way to manage your liquid cash. Putting your expenses on a credit card helps you ensure you’re not spending everything from your savings account. While at the same time, you can enjoy the rewards in whatever form you choose. 

A key thing to remember while picking a card for the rewards is to ensure those rewards are useful to you. For instance, picking a credit card which gives you travel-related perks isn’t useful to someone who doesn’t travel more than a handful of times in a year.

On Fi Money, you can get a credit card that gives you as much as 5X the value of your spends as rewards, as well as the flexibility to choose the rewards by redeeming those reward points.

Frequently asked questions

Is it worth using a credit card for reward points?

Yes. As long as the reward points are not tied to one particular merchant. For example, getting a credit card which gives you travel-related perks isn’t valuable for someone who doesn’t travel more than a handful of times a year.

Is it better to use points or get cash back?

There’s no one right answer to this one. Most people prefer cash-back, but reward points that give you access to a wide range of rewards from electronics to tickets may just work out to be a better proposition.


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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