Tracking and redeeming credit card reward points may sound tedious, but it’s actually From free flights and hotel stays to cashback and vouchers, your reward points can translate into real monetary value, if you know how to manage them well.
Ashish Lath, Founder and CEO of SaveSage, says, “The biggest mistake most people make is not tracking their reward points at all. Many cardholders don’t even know what points they earn or how. They just feel lucky to have a credit card and use it without realising that reward points can hold real value if managed well.”
, and understanding it is the first step to maximising rewards. Learn how many points you earn per rupee spent, where you earn them, and where you don’t. Lath suggests tracking points monthly — ideally when you receive your statement — to spot missing or expiring points early.
He adds, “Users often miss out on bonus categories like 2X, 5X, or 10X rewards because they never check the details. Small habits like monitoring your statements regularly can help you make the most of your rewards.”
Each bank has its own expiry policy for reward points — some expire in two or three years, while others stay valid as long as your card remains active. “If you transfer your credit card points to a travel loyalty program, those points follow the expiry rules of that program,” explains Lath.
He advises users to know both sets of rules and, if needed, transfer points before expiry to extend their life. “Even a small transaction every month helps keep your points active,” he adds.
Lath puts it bluntly: “If you’re someone who overspends on credit cards, then credit cards are simply not for you. They’re meant for disciplined, smart spenders.”
Use category-specific cards — like those that offer higher rewards on dining, travel, or online shopping. Many cards also give milestone bonuses for crossing annual spend thresholds. “If planned wisely, these milestones can give a significant boost to your total rewards,” he says.
Not all redemption options are equal. While cashback cards offer simplicity, premium cards with travel partners often provide higher value per point. “The first step is to understand all your redemption options and the value they offer,” says Lath. “Many users redeem inefficiently simply because they aren’t aware of better alternatives.”
He advises choosing redemptions that match your lifestyle — cashback if you prefer ease, travel rewards if you enjoy exploring.
Reward redemption isn’t always free.
Lath recommends redeeming less often but in larger amounts. “Also, when redeeming a product from a catalog, the partner or bank may charge shipping fees and when transferring points to an airline or hotel program, or booking a ticket via the redemption portal, you may still need to pay taxes or convenience fees in cash,” he warns.
Always check the fine print before redeeming.
If you have multiple credit cards, avoid scattering points across different programs. Instead, transfer them into one loyalty account where possible. “Pooling points allows you to accumulate a meaningful balance and redeem them for bigger rewards like travel or premium experiences,” says Lath.
He concludes, “Reward points are a genuine asset, but like any asset, they need attention and tracking to deliver real value.”
Simply put, with a few mindful habits — knowing your card, tracking points regularly, and redeeming strategically — your credit card can turn from a simple spending tool into a smart financial ally.