How to Use Reward Points to Maximise Benefits

Reward points are a valuable yet often underutilised financial asset. Consumers earn them across various platforms, including credit cards, airlines, and retail programs, but fragmented balances and expiration dates can reduce their overall usefulness. By strategically consolidating points, prioritising high-value redemptions, and leveraging seasonal promotions, consumers can maximise their savings and get the best returns on their accumulated rewards.

How to Consolidate Reward Points for Greater Value

Consumers accumulate reward points across banks, credit cards, airlines, and retail programs. However, the inability to merge these points often reduces their utility. Some platforms offer point transfer options, allowing users to combine balances for larger redemptions.

Prioritising High-Value Redemptions

Not all redemption options provide the same value. Experts suggest focusing on:

• Travel: Converting points into airline miles or hotel stays often provides better value than gift vouchers.
• Shopping: Using points directly at merchant checkouts ensures full value, unlike catalogue-based redemptions.
• Dining: Paying restaurant bills or food deliveries with points stretches their worth more than using discount vouchers.

Tracking Expiry Dates and Utilising Seasonal Offers

Many reward points have an expiry period, leading to losses if not redeemed on time. Keeping track of expiration dates and using points during festive seasons—when special discounts and bonus offers are available—can increase their value.

Leveraging Festive Deals and Bonus Offers

Retailers and financial institutions frequently offer bonus points, cashback, and exclusive discounts during limited-time promotions. For example, during the Amazon Great Indian Festival or Flipkart Big Billion Days, credit card users often earn extra reward points on purchases.

By timing big-ticket purchases like smartphones or appliances with these sales, users can maximise savings.

Choosing the Right Credit Card

Different credit cards offer varying reward structures. To optimise benefits, users should:

• Use the card with the highest point multiplier for specific spending categories (e.g., travel, online shopping, or dining).
• Take advantage of special promotions that provide increased rewards on high-value purchases.

For example, a frequent traveller can use accumulated credit card points to book flights and hotels, while an online shopper can use rewards to offset future purchases.

Conclusion

Reward points can be a valuable financial tool when used wisely. Consolidating points, focusing on high-value redemptions, and timing purchases with festive offers can significantly enhance their benefits. By selecting the right credit card and tracking expiry dates, consumers can ensure maximum savings from their rewards.

Disclaimer: This blog has been written exclusively for educational purposes. The securities mentioned are only examples and not recommendations. This does not constitute a personal recommendation/investment advice. It does not aim to influence any individual or entity to make investment decisions. Recipients should conduct their own research and assessments to form an independent opinion about investment decisions.

Investments in the securities market are subject to market risks, read all the related documents carefully before investing.