BUSINESS

Maximize Your Credit Card Rewards: How to Track and Redeem Points Smartly

Many credit card users swipe daily but often overlook one of the most valuable perks — reward points. When tracked and redeemed strategically, these points can translate into free flights, hotel stays, cashback, and exclusive offers.

Understand Your Card’s Reward Structure
Every credit card has its unique earning pattern. Knowing how many points you earn per rupee spent, bonus categories, and restrictions is essential to maximizing rewards. Financial expert Ashish Lath, CEO of SaveSage, emphasizes, “Many users don’t even check how points are earned. Regularly reviewing statements ensures you don’t miss bonus categories or expiring points.”

Monitor Expiry Dates Carefully
Reward points often come with expiry rules — some may last a few years, while others remain valid as long as your card is active. Points transferred to travel or loyalty programs adopt the rules of that program. Lath advises users to track expiry dates and make small monthly transactions to keep points alive.

Earn More Without Overspending
Credit cards reward disciplined spending, not extra expenditure. Using category-specific cards for dining, travel, or online shopping can boost rewards. Milestone bonuses for annual spends can also significantly increase your total points if planned strategically.

Redeem Wisely
Not all redemption options offer equal value. While cashback provides simplicity, travel or premium card redemptions often give higher value per point. “Understand the value of different redemption choices and align them with your lifestyle,” Lath notes.

Watch for Fees
Reward redemption may incur nominal fees, typically Rs 99–199 plus GST, or other charges like shipping, convenience fees, or taxes when using travel partners. Redeeming points in bulk rather than small increments can reduce these costs.

Consolidate Points for Bigger Rewards
If you hold multiple cards, pooling points into a single loyalty account can unlock higher-value redemptions, such as premium travel experiences or exclusive products.

The Bottom Line
Credit card reward points are a valuable financial asset, but they require attention and strategy. By understanding your card, monitoring points regularly, and redeeming intelligently, you can transform your credit card from a basic spending tool into a smart wealth-building companion.