The Basics of Earning Credit Card Reward Points

Credit card companies offered many incentives and rewards for their cardholders. These incentives and rewards are very effective in enticing their customers to use their credit cards in their everyday purchases as well as big-ticket items.

Different credit cards have different ways of providing rewards and benefits to their users. Some of the common rewards include:

1. Air miles
2. Discount for grocery purchases, petrol, fine dining, etc
3. Priority alert or admission to special events
4. Free movie tickets
5. Cash rebate

Each time you make a purchase with your credit card, you will earned and accumulate reward points. The more expensive the item you purchase, the more points you earned. To check how much point you have accumulated, just check your monthly card statement. Alternatively, you can call up the customer service hotline or go online to check if they are available.

Most likely you will also have received a catalog of rewards from your credit card company. This catalog will provide details on how many points are needed for each type of reward and how you can redeem them.

Take note that the reward points have expiry date. The validity of the points usually lasts for one year only but it differs from card to card. If you did not accumulate enough points to redeem any reward before the expiry date, these points will be forfeited and you have to start all over again.

In the case of special reward like air ticket, you cannot redeem right out of the box. Instead, you have to convert your points to the corresponding amount of air miles and the exchange rate may not be one to one. This means that 1000 reward points does not necessary mean you can exchange for 1000 air miles. The exchange rate is determined by the credit card companies and airline involved and there is no standard exchange rate.

With the exception of special rewards like air miles, most of the rewards can be redeem quite easily. Most of the time it involves just filling up a reward redemption form and fax or mail it to the credit card company. You can also call up the customer service hotline to get your request process. If you have Internet access, you can also do the redemption online if the service is available.

In some cases, you can even redeem the reward right on the spot at the merchant venue. For example, you have enough point to redeem a movie ticket. All you have to do in pop by the cinema ticket counter and tell the staff you wish to redeem a movie ticket. Just present your credit card and the cinema staff will take care of the rest. No form to fill and very little waiting time. Sadly, this type of instant redemption is not very common at the moment.

While some of the rewards can be very tempting, you have to keep in mind to use your card responsibly. It is dangerous to keep making purchases after purchases just to accumulate enough rewards points to redeem the item you want. Doing so can put you into some serious debt problem. As long as you use your card wisely, getting free gifts regularly can be a rewarding experience.