August 31, 2025 · 11 mins read
Santosh Kumar
Credit cards have become increasingly popular not just in India, but also all over the world. They are easy to use, and if used with caution, they offer a host of benefits. Credit cards offer cashback, reward points, discounts on air tickets and train tickets, free airport lounge access, etc. Banks and credit card issuers have customised their credit cards, tailoring them to the needs of the customers. Of all the offers that credit card users get, credit card reward points are the most lucrative yet the most undervalued benefits.
Almost all credit cards offer rewards points to their customers every time they make a purchase using their credit card or use it for online transactions. Users can earn up to 2 to 5 points for every 100 Rs to 150 Rs they spend on their credit cards.
Some credit card transactions even give up to 10X rewards, while some credit cards offer higher reward points with online shopping. 10X rewards amount to 50 reward points for every Rs 150 spent; that is an effective reward rate of 33%.
These reward points can be redeemed afterwards when the customers use their credit cards for transactions on the online portals specified by the credit card issuers.
Credit card reward points are rewards earned as a token of appreciation when customers use credit cards to shop, book tickets or other services.
These rewards can be in the form of cashbacks, discounts or annual fee waivers, welcome bonuses, etc. Customers can know how many credit card reward points they earned at the end of each billing cycle in their credit card statements. Customers can also check their balance and reward points by checking their credit card's net banking or mobile app. Banks often reward their loyal customers with reward points when customers pay off their credit card bills with each billing cycle, thus not keeping any balance for their next cycle.
Banks may take 3 to 10 days to process the reward vouchers. Reward points must be used by the registered cardholder only, and some banks do not allow the transfer of reward points to other banks.
Some reward points have a validity of up to 90 days, while some have a validity of as long as 2 years, after which they cannot be redeemed. Modern credit cards offer reward points that have no expiry.
Earning credit card reward points is solely at the discretion of the credit card issuer and the credit card users.
Many credit cards are available in today’s market. No two people have the same needs, so customers must choose the credit card that suits them best, depending on their preferences. Some credit cards give reward points on shopping, while others give reward points on flight booking or train booking. Customers must have a thorough knowledge of how they can increase their reward points each time they use their credit cards.
Many credit companies offer welcome bonuses as reward points for their customers. They may even waive their annual fees if customers exceed specific spending thresholds.
Credit card companies have tie-ups with many online shopping sites, airline companies, hotels, food outlets, golf clubs, jewellery stores, retail stores, other service providers, etc. Customers are rewarded with credit card reward points when they use credit cards, which can later be redeemed. Customers are notified of the various festive credit card offers from time to time via email and SMS. Customers must keep track of them to enjoy maximum reward points.
However, not all credit card transactions earn reward points. Customers do not earn any reward points with transactions like paying insurance, withdrawing cash, EMI transactions, or e-government services.
Some credit cards prefer not to give reward points. They give cashback on offline as well as online purchases from retail giants like Amazon, Flipkart and Myntra.
Credit card reward points can be increased when credit card users use their credit cards every time they perform a transaction.
Some credit card companies reward their customers with milestone bonuses when specific spending milestones are reached on a monthly, quarterly or yearly basis. These can also be used for free airport lounge access.
Prompt payment of credit card bills.
Using cards wisely, limiting their credit card usage, not spending recklessly, thus avoiding late charges, penalties or increased interest charges.
Getting rewards points is easy, but overspending on credit cards to get more credit card reward points is often not a sensible idea, as overspending leads to increased credit card bills, increased interest charges and late charges. Instead, customers should use their credit cards wisely to get only those reward points that are useful for them and not hunt for all.
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A recent survey shows that approximately 23% of credit card users did not use any of their reward points last year. Customers should have proper knowledge of their lifestyle needs before they apply for credit cards. Failure to redeem reward points can result in losses not just for the customers but also for the concerned merchants, as well as credit card companies.
Credit card reward points can be redeemed online by going to the dedicated net banking sites of credit card issuers. Alternatively, customers can also contact their 24-hour customer care for any assistance. There is, however, a minimum number of reward points needed before users can redeem them.
Reward points can be redeemed to buy a variety of products, electronic items, lifestyle products, kitchen items and car and travel accessories. Reward points can also be redeemed as e-vouchers for people who prefer online purchases.
Reward points can be redeemed for gift cards and gifted to our near and dear ones.
Through the online redemption process, the products can be delivered directly to the doorsteps of customers without any hassle.
Redeemed reward points can be used to pay utility bills, recharges, etc., thus lessening the financial burden of the credit card user to some extent.
In rare cases, reward points can also be used to waive off credit card annual charges.
If customers are lucky enough to have debit and credit cards from the same bank, reward points from both cards can be clubbed together and redeemed.
Some banks have redemption fees, while for others, redemption is free of cost.
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Credit card reward points can be redeemed as cashback, discounts, recharges, gift vouchers, merchandise, etc. Most customers are not aware of how to use their credit card rewards points, and afterwards complain about their credit card points. Customers should educate themselves on how to make optimum use of their credit card rewards points, and later not regret missing credit card points.
1: First and foremost, all customers should know that many of these reward points have an expiry date, and if not redeemed within the expiry date, they may lapse.
2: Customers should have a deep knowledge of which online portals they should use their credit cards to earn reward points. It is not necessary that credit points will be awarded while performing transactions on all online portals.
3: Customers must keep a close watch on their balance and credit card reward points from time to time by monitoring their credit card statements.
4: There may be credit card points missing when the credit score of the customers is low, and they are not paying their credit card bills on time.
5: If someone has to block their cards, temporarily or permanently, due to credit card fraud, credit card theft or customers closing their credit cards for whatever reason, all the rewards points they earned are lost.
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If customers find their credit card points missing, they should immediately check their credit card statements, which are available online, to get a clear picture.
Customers should check their transaction history from time to time and escalate any issues to the concerned team before it is too late.
Customers can check if their transactions are eligible for reward points using MCC (Merchant Category Code).
Any technical glitch or issue with a credit card can falsely reveal credit card points missing. It is better to wait for some time and recheck again rather than panicking about credit card points missing.
If, for any reason, customers find their credit card points missing and are unsure of the reason, they can talk to the customer care representative. Customer care representatives would be happy to help in any way they could.
Customers can also visit the nearest branch of their credit card issuer or bank and inquire about missing credit card points.
Depending on the issues, it may take 1 to 2 days for customer service to resolve the issue. Customers should cooperate with their credit card providers’ customer service, as there is often a long queue of redressals to be addressed by them.
Credit cards are not just normal cards; when used cautiously, they offer a lot of privileges. They have widespread use in recent times, as they are advantageous over debit cards; they can be used anywhere and anytime. They ensure a hassle-free shopping experience and can be used to pay bills, recharges, hotels, book flights and train tickets, and so on. Depending on the usage of the card, credit card companies often reward their customers with credit card reward points, which can be redeemed online, for shopping, travelling, cashbacks, or discounts in hotels or flight bookings, or to purchase something.
The majority of credit card customers are unaware of the reward points and how to use them wisely. Reward points given by some credit card companies have an expiry date, and so after the expiry of these, customers find their credit card points missing.
Customer education in managing credit cards is essential to using reward points. Just as credit card reward points are increased, they can be decreased, too. By not choosing the right credit cards, by not paying credit card bills on time and by not adhering to the terms and conditions set by credit card companies, there may be credit card points missing.
Credit card companies have the right to freeze or cancel the credit card and take away all reward points if there are consistent late payments or a continuously dropping credit score.
Credit card customers can contact the customer care representatives for any queries related to their credit card services.
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Credit card reward points are rewards given by credit card issuers to encourage users to use credit cards every time they purchase something or do any transaction.
Yes, credit card reward points can be redeemed as gift vouchers, to purchase something from the bank's website, e-vouchers, etc. Credit card companies have their own terms and conditions to redeem their credit card reward points. Customers should be well versed with these terms and conditions to get maximum benefits from these reward pints.
In case of credit card fraud or theft, or in case of reward point expiry, reward points once lost are gone forever. Customers should, however, reach out to customer care and wait for them to resolve the issue.
It may happen sometimes that users find their credit card points missing. Users must monitor their balance reward points from time to time and keep a note of them. All credit card issuers and banks have 24-hour customer care to assist customers in this regard.
Not all credit card transactions are eligible for reward points. Some transactions, like ATM withdrawals, insurance, and transactions for e-government services, are not eligible for reward points.
If there is a credit card theft and one has to freeze the credit card, unfortunately, all credit card reward points are lost. Hence, it is better to strategically use the reward points as and when they accumulate.
Yes, a low credit score often results in credit card points missing or even loss of credit card reward points. Customers must pay their bills on time and make sure they have acceptable credit scores to retain the reward points they earned.
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