Understanding Credit Card Reward Points

We are certain that you have heard a lot about the concept of credit card reward points. It is one of the ways in which the credit card company/issuing bank rewards you for using their services. Additionally, we are also certain about the fact that you know people who have got a wide range of benefits due to their credit card reward points. If you want to understand this concept more intimately, you have come to the right place. Read on to know what credit card reward points are all about, actually.

First things first, credit card reward points are basically a form of currency that the financial institution which has issued the card has come up with. They are usually given out in proportion to the quantum of your credit card spends. But, keep in mind that you will only get the reward points in question after making timely credit card payments in full. You tend to lose any points that you have earned for a particular transaction if it is converted into EMIs.

If you have earned a significant amount of reward points, you can easily redeem them at places and/or online outlets which have a tie-up with the credit card company. Depending on your credit card issuer and their tie-ups, you can redeem your credit card reward points for things ranging from clothes, accessories, pieces of tech to free flight tickets and stay at luxury hotels.

In order to redeem those points, in some cases, you will need to log on to the website of the issuing financial institution with your credentials. Alternatively, you may need to contact the merchant that the financial institution has a tie up with, directly to find out what you can get for your points.

Also Read: How to generate credit card pin

In the case of, say, the Airtel Axis Bank Credit Card, for example, you can redeem your reward points for things such as airport lounge access, scrumptious meals at select restaurants and buy products at highly discounted prices. In some cases, you will either have to log on to the Airtel or Axis Bank website with your credentials or call the eating establishment directly to know what your reward points can get you. Also, keep in mind that in time, the credit card reward points become more valuable as banks are constantly looking to form partnerships and tie ups with various merchants to get their clients the most for their credit card spends.


So, now you have a rundown of what credit card reward points are all about. But, keep in mind that depending on the type of card you are going for and its issuing financial institution, the benefits you will be eligible for will vary. Hence, we would always advise you to choose a credit card wisely and even take a look at their reward points scheme beforehand in order to make a decision. To know more about how credit card reward points work, you can always take a look at what the Airtel Axis Bank credit card reward points can get you.