What Are Credit Card Points and Their Worth?

Credit Card Rewards are the best part of having a card, and also for the fact that it is some extra emergency fund you can have in cash in an emergency. Every Credit Card gives you some kind of reward while making a spend with them over a certain amount. This rewards rate can be different from card to card and also depends upon the bank. Credit Cards are a valuable addition to your finances, and rewards increase the value of your every spend.

Different credit cards offer different types of rewards as some might provide reward points which can also be called credit card points, whereas other credit cards can provide you with cashback on your every expense. The amount of rewards and cashback you earn can vary depending on the amount you are spending since these amounts are set by the banks.

What Are Credit Card Points and their worth

What are Credit Card Points?

There are different types of rewards presented by the bank, which are simply referred to as credit card points. These types of rewards are as follows.

Reward Points

When you spend some money with the help of your credit card, you get rewards in return. The amount of rewards to be given is always predetermined by the bank. There are exceptions as well, where you get to earn accelerated reward points or extra reward points on your expenses. However, these accelerated reward points are only triggered when you spend money on a particular type of product. The best example of an entry-level reward points credit card is the SBI SimplyCLICK Credit Card.

People who are familiar with credit card rewards can surely use their points productively. However, people who are not yet familiar with the accumulation and usage of reward points need to consider their redemption strategy.


Similar to points, when you spend money, you get Miles in place of rewards. The bank pre-determines the usage course of these miles, which can be changed as well. The miles accumulated can be further redeemed against the bank’s catalog. One of the most popular credit cards for earning Airmiles is Axis Bank Atlas Credit Card.


Cashback is yet another type of reward by credit card, where you get a cashback, which is the percentage of the transacted amount. The cashback value can be further redeemed against your credit card bill, and in some cases, you can also use the cashback to buy something of your choice. To know more about the credit cards where you can earn cashback, you can check the best cashback credit cards in India.

Credit Card Points Worth

There might be a lot of confusion among the new credit card users about what I am even going to do with these reward points. When we talk about reward points, their accrual rate can be one-third of a rupee or maybe more than that, and you get the rewards when you spend at least a hundred rupees. This indicated that the reward rate was lower than 0.50% of the whole amount. So, the confusion is legitimate, but new users do not understand that when you make big purchases, this minimal reward rate can save them a sufficient sum.

For Example, Cardholder A uses their credit card for everyday expenses, and they spend a total of Rs. 50,000 at the end of the month. If the bank’s reward rate is 4 reward points for every Rs. 200 spent and 1 RP equals Rs. 0.50, then they have accumulated 1000 RPs. The worth of their RPs is now equivalent to Rs. 500. This means the cardholder has ultimately saved Rs. 500 at the end of the month even after all these expenses.

People usually forget to understand this, but saving is saving, be it Rs. 1 or Rs. 1 Lakh. These reward points do the saving for you. The reward redemption rates can be different from bank to bank, so it is not always the case that you are saving 50 paisa for every 100 rupees spent.


Rewards are the most favorite thing if cardholders use credit cards and have a decent knowledge of reward redemption and its rate. Credit Card Points are a type of value back that you earn based on your expenses at the end of every transaction. The rates can differ, and the redemption methods can also be flexible depending on the cardholder’s choice. Credit card points are one of the other ways of saving something extra while taking care of everyday expenses. These reward points by credit cards can still save you enough to consider their worth on a serious note.

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