How Credit Card Reward Points Work? - Loan Trivia


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Monday 14 January 2019

How Credit Card Reward Points Work?

In India, the use of debit cards and credit cards are increasing considerably over the past few years. With various banks and NBFCs providing a multitude of offers and benefits for credit card holders, more and more people have started availing it.

If you use a credit card to make a purchase, you will get credit card reward points such as, cashback, and discounts on your purchases. You can avail interest-free loans too against your available credit limit. Repaying the dues within time will also improve your CIBIL score.

Know about How Credit Card Reward Points Works

Pay Yourself with the Credit Card 

By far the best way to meet the minimum spending limit is to pay yourself with your credit card and then pay the card back. Here’s how it works:

You can make the bill the entire amount of the minimum spending required or whatever you may need to hit the mark. Make sure to use a different email address instead of the one tied to your current account.

Use your credit card to pay for the bill. After paying it, the money will go to your bank account, minus a 3% credit card transaction fee. Use the money from the bank account to pay for your credit card at the end of the month. By using this simple hack, you will pay just 3% of your minimum spending

Use Your Credit Card to Pay for Big Purchases

How to Redeem Credit Card Reward Points    
Convert Points into Cash
Use points to buy gifts and vouchers
Use Points into travel miles
You can buy fuel with Points

You can avail your credit card as per your requirements and lifestyle. If you want a card for entertainment purpose, you should go for cards that offer discounts and cashbacks on booking movie tickets or spending at restaurants. If you need to travel a lot, you apply for a credit card that gives reward points on travel tickets.

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