June 22, 2025 · 11 mins read
Santhosh Kumar
Credit card reward points are more than fair bonuses—they're a smart way to extend your investment and gain value back on regular purchases. Whether it's food, fuel, online shopping, or travel, using your credit card wisely can earn you thousands of points each month. The genuine trap, however, is knowing how to use the credit card reward points effectively so they don't go to waste or bring less value than they're worth.
Most individuals either disregard redeeming their points or settle for low-value Redeemies. However, with a small arrangement, you can convert those unused points into flight tickets, premium vouchers, or even straight-up investment funds on your credit card Bill.
When you use your credit card for purchases, the issuing bank regularly gives you reward points. Regularly, you earn 1 to 10 points per ₹100 spent, depending on the card's category (basic supply, fuel, dining, etc.).
The equation is:
Points earned = (Total Billing Amount) × (reward rate for that category)
For example:
If your HDFC Regalia card gives 2 points per ₹150 on feasting, and you spend ₹3,000 on an eatery bill:
Eligible spend = ₹3,000 → ₹3,000/150 = 20 units
Points = 20 × 2 = 40 points
Your points appear in your monthly statement under a section like "Reward Point Statement." You can also check your credit card app or online banking portal for real-time updates.
Banks offer a variety of Redemption alternatives. Let’s explore the most prevalent ones:
1: Process: You request that the bank convert your points into cash back or credit, which reduces your outstanding balance.
2: Rate: Regularly, 1 point = ₹0.25 to ₹0.50.
3: Example: If you Redeem 10,000 points at ₹0.30 per point, you get ₹3,000 off your statement.
1: Retailers: Flipkart, Amazon, Myntra, Croma, Future, Huge Bazaar, etc.
2: Value: Ordinarily, 1 point = ₹0.25, but limited time Redeemies may offer superior value.
3: Tip: Check the recurrence of special offers to bank on occasion sales or partner anniversary sales.
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Some premium cards allow you to exchange points for visits to frequent flyer programs (e.g., Air India Air Miles, Vistara Club, Singapore KrisFlyer).
1: Value: For the most part, 1 point equals 1 mile when converted through the bank's loyalty program.
2: Example: Use HDFC Diners to convert points to Air India miles at a 1:1 ratio.
3: Note: Observe exchange expenses and booking caps.
Banks like Axis and SBI offer travel portals where you can specifically book flights and hotels using points, in some cases with slight markups (e.g., 1 point = ₹0.40).
Many banks offer an online “Rewards Mall” where you shop by means of their entry and win additional points or Redeem existing ones against purchases.
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One helpful alternative: energize your versatile payment utility bills and use points to offset the toll. The redemption rate is, by and large, ₹0.25–₹0.40 per point.
Here’s a viable arrangement to follow:
Log in to your credit card's online banking or net banking app and note the points and expiry dates.
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1: Banks ordinarily terminate points after 1–3 years.
2: Example: If SBI card points earned in May 2022 are terminated in May 2025, you will need to redeem them sooner than that date.
Visit the "Rewards" or "Redeem" segment using your app or entry and explore:
1: Statement credit
2: Gift vouchers
3: Travel booking
4: Utility Bill rebate
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Option: Statement Credit Points Required: 10,000 Cash value / ₹: ₹2,500 ₹ per point: ₹0.25
Option: Flipkart Voucher Points Required: 8,000 Cash value / ₹: ₹2,000 ₹ per point: ₹0.25
Option: Airline Transfer Points Required: 10,000 Cash value / ₹: equivalent miles worth ₹3,200 ₹ per point: ₹0.32
Option: Utility Bill Pay Points Required: 10,000 Cash value / ₹: ₹3,500 ₹ per point: ₹0.35
1: Select an alternative (e.g., utility bill).
2; Fill receipt details.
3: Confirm redemption.
4: Allow 2–3 charging cycles in a few cases (e.g., Statement credit).
Keep an eye on subsequent statements to ensure the Redemption is connected correctly.
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Use Category Bonuses: Spend in 3× or 5× categories (fuel, dining, goods) on co-branded cards and Redeem at higher values, such as airline or hotel points.
Hold up for Reward Multipliers: Banks frequently run promos like “Redeem Gift vouchers at 20% additional value.” Stack your Redeemies around these.
Time Aircraft Transfers: Transfer amid sit-in deals or passage promotions—for instance, Vistara's "Club points Bonus" boosts value further.
Avoid Redemption Fees: Some banks Bill ₹99–₹199 per Redemption (esp. for explanation credit). Redeem in bulk to diminish Bill's impact.
Combine Investing with Festive Offers: During Diwali or New Year, numerous reward shopping centers offer an additional 10–20% on redemptions.
Assuming a normal value of ₹0.30 per point:
1: Statement credit = ₹7,500
2: Partner Airline = ~3,200 miles = ~₹9,000 value in trade class
3: Gift voucher = ₹6,250
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1: Letting points terminate — set reminders.
2: Redeeming quickly at moo value — hold up for promo.
3: Not checking the accomplice exchange proportion — e.g., 10,000 points might be converted to 1,000 Airline miles.
4: Splitting Redemptions — pays more fees.
5: Ignoring terms — caps, power outage dates, category limits.
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1: Earns 4 points per ₹150 on dining/travel.
2: Transfer at 1:1 to Air India.
3: Redeem for a commerce lesson at approximately ₹2.50 per point.
1: 5 points per ₹150 on basic supplies and feasting (through Burgundy Rewards).
2: Vouchers at ₹0.30‑₹0.35 per point.
3: During Flipkart Enormous Billion Day, Redemption gets a 10% additional value.
1: 5 points per ₹100 on travel overseas.
2: Redeem by using SBI Card Online Travel entry at ₹0.40 per point, or sometimes even ₹0.45 during offers.
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1: Calculate the number of points you need for airfare.
2: Ensure Airline exchange proportion is favorable.
3: The transfer is fair; airline booking accessibility can be limited.
1: Use entry alternatives to apply points against power, portable, and broadband.
2: Great for managing recurring expenses: keeps your credit usage healthy.
1: Reload points into e-wallets like Amazon Pay through partner offers.
2: Alternatively, select e‑gift vouchers for Indian stores.
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1: Use points for Swiggy, Zomato, Uber, and PVR vouchers.
2: Some banks let you convert points directly into Swiggy credits — watch out for special offers.
1: Set calendar updates ahead of expiry.
2: Make quarterly Payments — superior to monthly ones with fees.
3: Use the Exceed expectations tracker: date earned, expiry, planning redemption.
4: Subscribe to blogs like Flyertalk and LiveFromALounge India for promos.
5: App alerts: Most banks send notifications when points are about to expire.
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Redemption Type: Statement credit/cashback ₹ per point (typical): ₹0.25–₹0.40 Best Practices: Bulk Redeem to decrease fees
Redemption Type: Gift vouchers ₹ per point (typical): ₹0.25–₹0.35 Best Practices: Wait for reward offers
Redemption Type: Airline/hotel transfers ₹ per point (typical): ₹0.35–₹2.50+ Best Practices: Transfer for premium cabin redemptions
Redemption Type: Travel entry booking ₹ per point (typical): ₹0.35–₹0.45 Best Practices: Check energetic pricing
Redemption Type: Utility bill/payment ₹ per point (typical): ₹0.30–₹0.40 Best Practices: Ideal for repeating expenses
Redemption Type: Dining/lifestyle vouchers ₹ per point (typical): ₹0.25–₹0.35 Best Practices: Redeem amid category reward periods.
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While most individuals center on flight bookings or cashback as the primary use cases for rewards, there’s a part more you can do once you get it: how to redeem reward points inventively. Indian banks are always extending the biological system around rewards, advertising one-of-a-kind redeemed and covered-up benefits that frequently go unnoticed. Knowing how to use credit card reward points beyond the self-evident benefits puts you in a distinctive alliance of users—those who don't have spare cash but appreciate lifestyle overhauls at no additional cost.
One of the most underrated reward points is access to events and experiences. A few premium cards, such as HDFC Infinia, SBI Aurum, or Axis Reserve, permit clients to redeem points for curated experiences—think luxury dining reservations, golf sessions, VIP access to concerts, or spa treatments. These may not have a cash esteem on the surface, but they offer optimistic encounters that would fetch you thousands of rupees. Pivot Bank's Burgundy card, for instance, allows you to use points for personalized concierge bookings—a genuine reward if you value comfort and convenience.
Another intelligent utilization is converting points into fuel vouchers or direct fuel payment credits. Although not all cards permit this, many do—such as IndianOil co-branded credit cards from HDFC or Axis. The redeemed esteem may float around ₹0.25 per point, but when fuel costs are tall, each bit makes a difference. A few bank apps also let you specifically redeem points at the petrol pump using Pay with points options (available with HPCL or IndianOil outlets). It's one of the most consistent ways to use focus without any additional effort.
A lesser-known but valuable redeem is EMI offsets. Certain banks, like ICICI and Kotak, permit clients to balance EMIs of high-value purchases using reward points. Assume you bought an ice chest or TV utilizing your credit card and chose EMI. You can apply your reward points towards reducing the monthly outgo or even closing it altogether. This is particularly valuable if you're overseeing big-ticket investments and need to ease the financial burden without breaking your budget.
Some cardholders with trade cards or commercial utilization also take advantage of redeeming points for payment installments or vendor invoices—an office that's slowly gaining traction with fintech and bank integrations. Even though it is not far-reaching, this can be an important consideration for little commerce proprietors who need to free up working capital.
Also, don't ignore gifts and CSR redeemies. Numerous banks currently allow you to donate your unused points to charities, COVID-19 relief funds, education for underprivileged children, or disaster relief. Although this won't directly benefit you in terms of cash value, it's a mindful way to utilize termination points, particularly when you don't have any immediate personal redemption plans.
So, if you're sitting on an expansive heap of unused points, take a minute to investigate past the normal redemption. Whether it's attending a premium occasion, filling your fuel tank, or making a difference to someone in need, learning how to redeem reward points in special ways can offer more than fair savings—it can elevate your lifestyle or make a positive impact.
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As a rule, Statement credit or utility Bills are paid—instantly from the app or portal.
Yes—via Gift vouchers (PVR, Future, Big Bazaar, etc.) or co‑branded basic supply card features.
A few banks Charge ₹99–₹199 for statement-credit redemption; gift vouchers are ordinarily free.
Check your month-to-month Statements or net banking; set updates for six months, ideally just before expiry.
Not continuously; compare successful ₹ value. If you travel business or premium regularly, yes; otherwise, vouchers might be better.
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