Credit cards are useful tools if used wisely. One way credit cards reward customers is by giving them reward points. Reward points are nothing but rewards on every rupee you spend on your credit card. These spends convert into rewards that can be redeemed for money, vouchers or gifts as the case maybe. Credit cards also let you redeem reward points to buy fuel, flight tickets and so on. Here, we look at five ways you can make the most of your credit card points.

1. First, you need to pick the right credit card which suits your spending habits. Credit cards offer reward points on all purchases, but they offer higher reward points for certain spends depending on the type of card. So some card may offer higher reward points for transactions like online shopping, dining, fuel and so on. So, if you have a high fuel consumption, you can choose a card that offers higher reward points at certain fuel outlets. If you are a frequent flyer, you can choose a credit card that offers air miles, free tickets and so on. If you are using any credit card, understand its reward points structure so that you can make the most out of it.

2. You can avoid offline payments and use credit cards instead to earn more reward points. For large spends like groceries or air tickets, using a credit card is a wise idea because you can earn reward points on them. Credit card companies also offer reward points when you pay your utility bills. The idea is to use your credit cards for all your regular expenses so that you can earn more reward points.

3. Another way credit cards reward you is by offering cash backs. Basically, they are in the range of 5-25 per cent of your spends. How much cash back you will get on a certain spending category is specified in the credit card agreement. As the name suggests, the cash back award is in terms of cash. You can use this for purchases or adjust it with your credit card bill. Used smartly, cash backs can be a money saving tool.

4. As we have seen a credit card also let you redeem your reward points for various purposes. You can redeem them to buy air tickets. You can also reward those points to get gifts that are mentioned in a rewards catalogue. Gifts are available across all categories like shopping, travel, lifestyle, dining and so on. For example, you can accumulate reward points to purchase a pair of shoes or a watch. This is a smart way to use reward points as in this way you can plan to spend your credit card reward points for a specific purpose.

5. Reward points are meant to entice the customer to spend more on their card. However, getting carried away and making impulsive spends is something you should never do. You should make it a point to pay your full credit card bill by the due date. It is never a good idea to make the minimum payment as it can get you into debt.