I’ve earned points on my credit card – now what?

Most good credit cards these days come with some sort of reward scheme. The scheme may not be the reason you signed up for the card – perhaps you were drawn in by the low interest rate or the stellar list of user benefits – but you’ve noticed your points balance climb steadily upwards as you’ve made purchases and successfully paid down your balance.

But now, you’ve got to the point that you want to redeem your points – what are the options?

Good cards offer a range of benefits with their reward schemes which may come with one, all or even none of the following. The choice may be bewildering and you’ll have to think hard about what you’re going to do.

By far the most popular option is travel. Many card offers are based round a travel reward scheme, and you’ll find that before long you’ll have enough points to save you hundreds, perhaps thousands off travel tickets. Sometimes, it’s not quite that simple. Air tickets and hotel bookings may have different levels of reward, so it pays to look at which is going to give you the best deal. Help is out there for you – there are online guides available which help you choose which airlines and hotel chains offer the best destinations for your precious points.

Then there’s good old cash. Singapore-based credit cards offer a huge variety of cash-based offers, especially for the driver where the battle is on to offer the best deal at the petrol pumps. A top-notch credit card offers up to 20 per cent discount at petrol stations on the island, as well as similar discounts on groceries and other shopping. If you’re on a points-based card, you might find that offers may offer you cash back on your purchases.

You might also think about gift cards and merchandise rewards. Once again, the onus is on you, the cardholder, to work out if you’re getting the best deal from these offers. Gift cards – which offer value against future purchases will sometimes give you a bonus over and above the sum to which you’re entitled, but gift card issuers know that a significant percentage of cards are never redeemed, saving them money.

This being the case, merchandise always seems attractive. But make sure it’s something that you actually need, and that you’re not paying over the odds for somthing you could easily get for cheaper elsewhere.

As which most things to do with money, the bottom line with credit card offers is that you should always look at the small print to make sure you’re getting you you’re paying for. Take care, and you will be rewarded.

How-to-redeem reward points: