Here’s How to use a credit card for reward points

Today, credit cards are more than just mere tools to pay for your purchases. In the quest to draw more people towards credit cards, banks have introduced a number of reward systems that give the users a chance to earn some money while they spend.

The way most credit cards work is by partnering up with shopping giants, airlines and hotels to give the users added reward points and cashbacks. Axis Bank, for instance, partnered with Flipkart to give people an ideal credit card for online shopping.

It provides accelerated reward points every time you pay for purchases on Flipkart using the Flipkart Axis Bank credit card. There are other credit cards, like the extremely versatile Bajaj Finserv RBL Bank SuperCard, which offer a range of reward points for purchases across categories.

Be it a reward credit card or a travel credit card, you can use any and every type of credit card to earn reward points, and then redeem them for vouchers, gifts and air miles, among others.

But the big question on a customer's mind pertains to how they can earn reward points. One can earn reward points for a number of purchases they can make using their credit card.

Regular rewards: Every credit card offers the cardholders a certain amount of reward points for every 100 INR they spend using the card. These rewards can ultimately add up to a huge amount at the end of the month.

Welcome rewards: Welcome rewards are designed by companies to award the customers for choosing their credit cards. Once you apply for a credit card and your application gets approved, you get a welcome gift in the form of points. For some banks, these welcome rewards can be worth 3,000 to 6,000 INR when redeemed. Welcome rewards act as a great incentive to get people to spend more using their credit cards.

Special rewards: Most credit cards have specialized reward points if you spend money on a specific brand or category. There are travel credit cards like the Air India SBI Platinum Card that offer accelerated reward points for money spent on buying Air Indian flight tickets. There are also other credit cards that give dedicated reward points for movie ticket purchases, known as entertainment credit cards. Depending on what you expect out of your credit card and where you spend the most amount of money, you might choose a suitable credit card that will earn you extra reward points.

Travel rewards: Travel credit cards offer quite a large amount of reward points for spending money on hotels and restaurants abroad. The HDFC Bank Superia Credit Card has immense travel reward points to offer, which can be redeemed for air tickets later.

Annual rewards: Annual rewards are awarded to cardholders once they cross a specific amount of money on their annual spends. If you spend a particular amount using your credit card, your bank is quite likely to offer you reward points as a sign of recognition and encouragement. The Bajaj Finserv RBL Bank World Plus Supercard offers up to 20,000 additional reward points as a part of their annual rewards scheme.