Credit Card Reward Points Redemption : Have you ever asked yourself what you do with the reward points you get with your credit card? Majority accumulates the points within months and fails to redeem them well-or even loses them before redeeming them! This stepwise guide will assist you to figure out how credit card reward points work, where to redeem them as well as how to maximize on them.
What Are Credit Card Reward Points?
A credit card reward points are such rewards, which are provided by banks each time you use your card to buy something. The higher the amount you spend the more the points you receive. All these points can be exchanged (redeemed) to vouchers, cashback, flight tickets, products and even fuel.
📌 Example:
If your card offers 2 reward points per ₹100 spent, and you spend ₹20,000, you earn:
➡️ 400 reward points
How Do Reward Points Work?
Different banks assign different value to each point.
For example:
| Bank | 1 Reward Point Value |
|---|---|
| HDFC Bank | ₹0.20 – ₹1.00 (depends on card) |
| SBI Card | ₹0.25 – ₹0.50 |
| ICICI | ₹0.10 – ₹0.25 |
| Axis Bank | ₹0.20 – ₹0.50 |
📌 Tip: Always check your card terms in your mobile app or bank website.
Benefits of Redeeming Reward Points
When used correctly, reward points can save you thousands yearly:
✔ Free shopping (Amazon, Flipkart, BigBasket, etc.)
✔ Free flight tickets + hotel discounts
✔ Free fuel & travel upgrades
✔ Convert points to cashback
✔ Gift vouchers for brands (Swiggy, Zomato, Myntra)
How to Redeem Credit Card Reward Points (Step-by-Step)
🔹 Step 1: Log into your credit card account
Use your bank’s app or net banking.
🔹 Step 2: Go to “Reward Points / Loyalty Program”
Usually found under Benefits / Rewards / Offers.
🔹 Step 3: Check your reward points balance
Verify available points + expiry date.
🔹 Step 4: Choose your redemption category
Common options:
- Shopping vouchers
- Cashback
- Travel (flights, trains, hotels)
- Fuel
- Lifestyle products
🔹 Step 5: Redeem and apply
Choose the item, confirm and get your reward voucher or cashback.
Smart Hacks to Get Maximum Value
Most beginners waste reward points unknowingly. Follow these hacks for best value:
Hack #1: Always compare point value before redeeming
Product redemption often gives lower value than vouchers.
Hack #2: Choose Cashback if you don’t shop much
Cashback = Direct saving on your credit card bill.
Hack #3: For travelers, transfer points to airline partners
You get 2x – 5x more value.
- Example: HDFC Diners → Vistara, Emirates
- ₹10,000+ value from 5,000 points.
Hack #4: Use reward points for fuel only if rate is high
Some cards offer ₹1 = 1 point value, which is excellent.
Hack #5: Redeem before expiry
📌 Most reward points expire within 2–3 years.
Frequently Asked Questions (FAQ)
🟣 Do reward points expire?
Yes. Most expire after 24–36 months. Always check expiry in your banking app.
🟣 Can I convert reward points to cash?
Yes, but only if your card supports cashback redemption.
🟣 Are reward points taxable?
No, they are not considered as income.
🟣 Do I get reward points on fuel or bill payments?
It depends on your card. Some cards exclude utilities & fuel.
Best Credit Cards for Reward Points (2025)
| Card Name | Best For | Reward Benefits |
|---|---|---|
| HDFC Regalia | Frequent shoppers | High conversion on travel |
| SBI Card Prime | Multipurpose users | Good for shopping + dining |
| Axis Bank Ace | Cashback lovers | 5% cashback |
| Amazon ICICI Card | Online shoppers | 5% on Amazon |
Final Thought: Don’t Let Your Reward Points Go to Waste
The reward points of the credit card can be considered free money, with the exception that it can be used only wisely. Monitor them on a regular basis, compare on redemption value, and select the one that would offer you the greatest savings depending on your lifestyle.
👉 If you use your points smartly, you can save anywhere from ₹5,000 to ₹25,000 every year.
Braj Verma is a resident of Rajgarh in Madhya Pradesh and is a content writer and freelancer by profession. He has a degree in Political Science from Barkatullah University, Bhopal. He has expertise in subjects like credit cards, banking, loan, insurance, political analysis and digital marketing.