Credit cards offer multiple benefits to users. One of the key advantages of shopping through credit cards is getting discounts and multiple offers on the products we buy. We also earn reward points on the purchase. The bigger the purchase, the higher would be the reward points. Some people use their reward points more effectively to save costs. However, reward points often come with an expiry date, causing many cardholders to lose out on their rewards.
Thankfully, some credit card issuers have now introduced never-expiring reward points, revolutionising the way customers perceive and utilise their credit card benefits. As these points don’t expire, you can get away with the fear to use the points within a specific time period. You can collect more rewards and use them collectively for bigger savings. Here are the key benefits of never-expiring reward points.
Understanding Never-Expiring Reward Points
Traditional credit card reward points often come with expiry dates, typically ranging from one to three years. This means that if you don’t redeem your points within the stipulated time-frame, they simply vanish, leaving you with lost opportunities for rewards. However, with never-expiring reward points, the points you accumulate on your credit cards do not have an expiry date attached to them, providing you with the freedom and flexibility to redeem them at your convenience.
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Advantages for Cardholders
Never-expiring reward points allow cardholders to accumulate points over time without the pressure of a looming expiry date. This is particularly beneficial for those who prefer to save up their points for larger redemptions such as travel bookings, high-value merchandise, or gift vouchers.
Adhil Shetty, CEO, Bankbazaar.com, says, “With traditional reward points, cardholders often feel compelled to redeem their points before they expire, sometimes settling for rewards they don’t necessarily need or want. Never-expiring points eliminate this rush, enabling you to wait for the perfect opportunity to redeem your points for rewards that truly align with your preferences and lifestyle.”
Expiring reward points can lead to a loss of value for cardholders who are unable to redeem them in time. Never-expiring points ensure that the value of your accumulated rewards remains intact, allowing you to maximize the benefits of your credit card spending over the long term.
Credit card issuers offering never-expiring reward points often complement this feature with enhanced loyalty programs. These programs may include bonus points on specific spending categories, accelerated point earning rates, or exclusive partnerships with merchants, further increasing the value proposition for cardholders. Without the pressure of expiry dates, managing your reward points becomes simpler and less stressful. You can focus on using your credit card for everyday expenses and strategic purchases, knowing that your reward points will retain their value until you’re ready to redeem them.
Impact on Spending Behaviour
Cardholders are more inclined to use their credit cards for a wider range of transactions, including big-ticket purchases and regular expenses, with the goal of accumulating more points over time. This shift not only benefits consumers by unlocking valuable rewards but also fuels economic activity as card spending contributes to the growth of various industries.
Choosing the Right Credit Card
When considering credit cards with never-expiring reward points, it’s essential to assess various factors such as annual fees, interest rates, point earning rates across spending categories, redemption options, and additional perks such as travel insurance or airport lounge access. Compare offerings from reputable issuers and select a card that aligns with your spending habits and reward preferences to make the most of this valuable feature.
Never-expiring reward points are beneficial for cardholders, offering flexibility and enhanced rewards opportunities. By understanding these features effectively, you can optimise your credit card usage, unlock valuable benefits, and enjoy a seamless rewards experience.
