Credit card reward points are loyalty benefits that you earn every time you use your credit card to make a purchase. Think of them as cashback in disguise — just in the form of points that you can later redeem for vouchers, flights, statement credit, and more.
These points are a core part of how credit cards provide value. If used smartly, they can earn you thousands of rupees worth of benefits each year — on money you were going to spend anyway.
💳 How Do Reward Points Work?
Every credit card assigns a value per transaction, such as:
- ₹150 = 1 point (standard on many cards)
- ₹100 = 2 points (higher rate cards)
Different cards have different rates based on where and how you spend. For example:
| Spend Type | Reward Rate |
|---|---|
| Grocery Shopping | 1 point per ₹150 spent |
| Online Shopping | 5 points per ₹150 (on some cards) |
| Dining or Travel | 10X points on premium cards |
Each point usually has a monetary value, like:
- 1 Point = ₹0.25 to ₹1.00
- Some premium cards give ₹2 or more per point when redeemed for flights or hotels
🧾 Where Can You Redeem Reward Points?
Common redemption options include:
- 🛍️ Gift Vouchers – Amazon, Flipkart, BigBasket, etc.
- ✈️ Flights & Hotels – via partner portals or transfer partners
- 💰 Statement Credit – reduce your card bill
- 🎁 Merchandise – electronics, watches, gadgets
- 🎟️ Event Tickets – movies, concerts, etc.
⚠️ Redemption rules vary by bank. Some charge a redemption fee (₹99–₹150), and some require minimum points to redeem.
🪙 How Much Are Your Points Worth?
Here’s a quick guide:
| Redemption Type | Typical Value per Point |
|---|---|
| Statement Credit | ₹0.25 to ₹0.50 |
| Amazon/Flipkart Vouchers | ₹0.25 to ₹0.75 |
| Flights (Transfer Miles) | ₹1.00 to ₹2.00+ |
Pro Tip: Cards that allow miles transfer (like HDFC Infinia, Axis Magnus, or Amex Platinum) offer the highest value.
🔍 Real Example – Axis Magnus
- Spend ₹1.5L/month = 25,000 Edge Miles
- Transfer to Air Vistara = 25,000 CV Points
- CV Points worth ₹15,000+ in Business Class flights
→ Effective 10%+ return on your spends!
🚫 What You Don’t Earn Points On
Most credit cards exclude reward points on:
- Fuel purchases
- Wallet loads (Paytm, PhonePe)
- Rent payments
- Insurance payments
- Government & tax payments
Always check the spend exclusions before assuming points will be credited.
🧠 Final Tips to Maximize Rewards
- 💡 Use the right card for the right spend category
- 📅 Watch out for monthly caps or tier limits
- 🔄 Redeem regularly — some banks’ points expire after 2–3 years
- 🚫 Don’t use points for poor-value redemptions (e.g. basic merchandise)
- 🧠 Stack with offers — rewards + cashback + brand discounts
📚 Related Reads
🔗 [Credit Card Fees Explained]
🔗 [Best Way to Use Credit Card Rewards]
🔗 [Cashback vs Rewards vs Miles — What to Pick?]
💬 FAQs
Q1: Do all credit cards offer reward points?
A: Most cards do, but not all. Some offer cashback or miles instead of points.
Q2: Can I convert reward points to cash?
A: Yes, many banks let you redeem for statement credit — this is like direct cash savings.
Q3: Do reward points expire?
A: Some do, some don’t. IDFC and Axis cards usually have no expiry, while HDFC points may expire in 2–3 years.
Q4: Is ₹0.25 per point good?
A: It’s average. Premium cards can offer ₹0.75 to ₹2 per point when used right.
🟨 Spark Summary
Credit card reward points are more than just a gimmick — they’re a powerful tool for free travel, shopping, and savings. But to win big, you must choose the right card, know how your points work, and redeem smartly.