As the holiday season begins, credit card companies are offering a host of reward points such as discounts on your flight and hotel booking, cashback on shopping and travel miles. Card users can also redeem the accumulated reward points to pay for their flight and hotel bookings and get vouchers to pay for shopping of select products or brands and even pay annual fees.
According to Amex Trendex, a trend report from American Express, about 88% of respondents want to use credit card rewards and points to offset prices this year.
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The report says 86% of the respondents have been saving credit card rewards for holiday shopping and 88% agree that they want to earn credit card rewards for online purchases this holiday season.
Sanjay Khanna, CEO, American Express Banking Corp India, says, “With travel being at an all-time high, Indian consumers are planning to travel for events overseas. American Express will continue to empower our card members to make the most of this holiday season with our services and products to live newer experiences.”
Points to encashTo make the most of travel, HDFC Diners Club Privilege Credit Card offers conversion of reward points into air miles, which the card user rewards for flights or hotel bookings. Air India SBI Signature Credit Card is offering up to 30 reward points for every Rs 100 spent on Air India tickets booked through Air India portals and app. Similarly, Citi Premier Miles Credit Card is offering 10 miles for Rs 100 spent on airline transactions and the card user can redeem earned miles across various airlines.
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When selecting a card, keep in mind your expenditure patterns so as to earn maximum reward points. If one is a frequent flyer, opt for a co-branded card. Or, if one uses a credit card frequently at a particular retail outlet, the retail outlet co-branded card can be helpful as it can fetch additional loyalty points, which can be encashed at a later point. In a cashback card, one gets the direct benefit of cash accruing to one’s account.
Experts say while it helps to have multiple cards, one must track the expenses and pay on time and avoid rolling the credit, which is more expensive than taking a personal loan.
