What is Credit Card Reward Points?

A reward program is offered by credit card issuers to their users to earn points to redeem for rewards, discounts, and other perks available (cash advance or balance transfer does not earn you reward points). There are three main types of credit card rewards programs:

Points

Points are a type of reward that can be earned by making purchases in specific categories using your credit card. Sometimes, you can earn bonus points when you spent on certain categories depending on your credit card.

Air Miles

Air Miles credit cards are usually more beneficial for frequent flyers. Once you accumulate enough air miles, you can redeem for an award seat on one of the credit card’s airline partners (the redemption values are determined by the airlines). The beauty about credit card miles is that you don’t have to fly to earn miles. You simply have to use your credit card to make a payment.

Cashback

Cashback is when you make a payment or a purchase, you get a percentage of the amount it cost paid back to you. Most cashback cards offer at least 1% cashback on all purchases, some cards offer up to 5% cashback on purchases made at department stores, supermarkets, and gas stations. You can think of it as a discount or incentive.

How do rewards points work?

If you are not familiar with the concepts of credit card reward points, here’s a quick rundown: You will receive a set number of points for every RM1 spent on the card. Most banks offer an RM1:1 point ratio, but some banks offer 3x, 5x, or even 10x points if you spend at specific times or with specific vendors depending on the offer by your card issuers.

After you reach the bank’s minimum redemption level, you may use your points to redeem vouchers, retail merchandise, or even to offset your payment. Regular card users will profit from this service because they will most likely accumulate a big number of reward points.

If you are planning to apply for a new credit card, you can check out the following websites to compare which credit card is best for you:

– Ringgit Plus
– iMoney
– CompareHero
– LoanStreet

READ: What Can You Do With Your Credit Card Reward Point?

Do credit card points expire?

Your hard-earned points may expire depending on the issuer and the type of card you have. Most Malaysian banks let you keep your points unused for up to 3 years. However, some of you may have the benefit of having no-expiration policies (is still best to check with your card issuer).

Your points earned and expiry date status are usually shown in your bank statement.

Understanding Your Credit Card Statement and How to Use it with jomSETTLE™

Conclusion

Credit card is a credit extended to us by the bank and reward points is an additional benefit that comes along with it. However, it is wise to use it with caution because to accumulate enough points for redemption, we will have to spend a substantial amount. This often leads to unnecessary spending or even debt if is not managed correctly.

With jomSETTLE™, you can use your credit card on necessity spendings such as monthly rent, loans, or even your business expenses if you are running a business. This way, you can reserve your cash in hand, pay your expenses with credit cards and earn all the reward points that your card had to offer.

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