You are not alone if you are looking for ways to convert your credit card points into cash. Many new card users desire to know this secret. How to convert credit card reward points to cashor redeem these points for monetisation is a question all cardholders and users want answers to.
Many credit card companies motivate their customers to use credit cards for purchases to earn points. Reward point initiatives are an integral part of credit card usage. They enable users to accumulate points during purchases at a predetermined rate. If you are eager to learn how to redeem your reward points for cash, this guide is the help you need.
What are Credit Card Reward Points?
Credit Card Reward points are incentives that credit card users get for each purchase made using their card. Typically, large purchases qualify for reward points than smaller ones. For instance, buying a flight ticket with a credit card can earn you more reward points than using the card to pay for groceries.
If you have amassed enough reward points, you can redeem them in the following three ways:
Credit Card App
You can redeem your reward points by using your credit card app. Go to the relevant section and select the options to redeem your points for cash. You can also log in to the lender’s website to redeem your points for cash. You have the option to utilise your points in other ways too.
Your Financial Institution
Walk into the closest branch of your financial institution or credit card company and request a reward redemption form. Please fill out the form and submit it for processing. Choose how you want the points redeemed, and you will have them.
This option entails calling your OneCard customer care representative to guide you through the redemption process.
More Ways to Utilise Your Reward Points
- Users can use reward points to pay their credit card renewal fees.
- Some credit card providers have a catalogue of products that cardholders can purchase with their accumulated reward points.
- They can use reward points to purchase gas and groceries and pay utility bills.
- Reward points can be applied to obtain discounts in retail and online stores.
- Other purposes for using their reward points include travel, air flights, hotel bookings and cinema shows.
Maximising Your Reward Point Gains
Apart from using your credit card for everyday purchases, there are some additional steps you can take to increase your earning potential.
- Receive a Sign-Up Bonus
Credit card issuers typically provide a welcome bonus to new users, enabling you to earn a substantial number of points after activating your card.
- Increase Expenditure in the Bonus Category
You may need to spend up to a specified threshold in a particular category before qualifying for the bonus. You will usually earn points for purchasing stuff with your OneCard credit card online. Furthermore, you stand to earn 5x in your top two purchase categories.
- Leverage on Other Bonus Offers
Issuers offer incentives when users make referrals. You can get specific points when you recommend friends and family through a link.
How to Convert Credit Card to Cash: Monetising Reward Points
Reward programmes differ from one credit card issuer to another. There are different ways of redeeming reward points, some of them given below:
Instead of receiving points for a purchase, customers receive a certain percentage of their purchase amount as cash, a form of a discount on their purchases, and they get the discounted amount as cash.
Some credit card providers offer the option to donate reward points to charity. They can convert accumulated points into cash and donate them to select charities.
- Gift Cards and Vouchers
They can also convert reward points into gift cards and vouchers, which is useful while purchasing products in retail stores.
Some credit cards let you earn air miles instead of reward points. Others allow the conversion of points to air miles. Users can redeem the air miles for flight tickets or get discounts on air travel purchases.
- Partner Retailers
Many credit card issuers have partnered with retailers and companies to facilitate product purchases. If you have enough credit points, you can redeem them by purchasing discounted products at such stores.
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Factors Determining the Value of Reward Points
The following factors can affect the value of the total points you earn:
- Type of credit card and the reward programme it offers.
- Amount of money you spend on your card.
- Purchase categories you spend money on.
- Issuer’s policies on earning and redeeming points.
- Redemption options available for earned points.
- Expiration date of reward points.
It is possible to convert your credit card points into cash. Explore all available options to get the most out of your credit card rewards. Remember always to use credit cards responsibly to avoid the debt that comes with unnecessary spending.