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Credit Cards

Additional Benefits Of Credit Cards

Apart from the ability to make purchases and withdraw cash, most credit cards offer additional features. Every bank/NBFC has a wide variety of credit cards, each having unique features. You can evaluate the offers and understand which one works best for you. 


Reward points

Every transaction you make earns you a reward point, the rate of which may vary from one credit card to another. For example, HDFC Diners Club Black Credit Card gets 5 reward points for every ₹ 150 spent while HDFC Freedom Credit Card gets 1 reward point for every ₹ 150 spent.

These reward points accumulate and can be redeemed later for a number of things such as vouchers, electronic products, air miles and more!


Reward points can be earned on a credit card in a variety of ways. Let us see some common ones:



Redeeming the reward points

Once a sufficient quantity of reward points have accumulated in your credit card, you would want to redeem the reward points. Every bank/NBFC has its own rewards catalogue, from which you can choose what you like. Every bank/NBFC will also have its own redemption procedure. However, most of them offer online redemption. In case you opt for an online voucher, it will be delivered to your email id. In case you opt for something else, it will be delivered to your mailing address.


Some of the most common redemption options available for reward point redemption are:


Vouchers/Gift vouchers: You can redeem the reward points for vouchers of prominent retailers and businesses. You can also opt for gift vouchers, which you can use for gifting.


Merchandise: Most reward catalogues have a wide variety of products such as electronic gadgets, beauty products, clothes, home essentials and much more.


Cashback: Sometimes, you may redeem your reward points for cash back into your credit card.


Air miles: You can opt for air miles, which you can use later to purchase flight tickets.


Donations: You can also choose to donate money to prominent charities using your reward points.

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