What Are Credit Points?

Credit points, also known as credit card reward points, are incentives given by banks and financial institutions to credit cardholders every time they make purchases using their credit card. These points accumulate over time and can be redeemed for various rewards such as airline miles, cashback, discounts, gift certificates, or exclusive perks.

For Filipinos who frequently use their credit cards for shopping, dining, travel, or paying bills, understanding how credit points work can help maximize benefits and savings. In this article, we will explain what credit points are, how they are earned, and how they can be redeemed.

How Do Credit Points Work?

Banks that issue credit cards often have a rewards program that allows cardholders to earn points for every peso spent. The accumulation of points depends on the card issuer’s terms and the type of transactions made.

For example, a bank may offer 1 credit point for every PHP 50 spent on regular purchases. Special categories such as dining, shopping, and travel may earn double or even triple points depending on the credit card’s rewards structure. The more you use your credit card, the more points you accumulate, giving you access to better rewards.

Types of Credit Points Rewards

The rewards you can get from accumulating credit points vary depending on the bank and the type of credit card you have. Here are the most common types of rewards:

1. Cashback or Rebates

Some credit cards allow you to convert your earned points into cashback or rebates. This means you can use your accumulated points to reduce your credit card bill, helping you save money on future expenses.

2. Travel Rewards and Airline Miles

Many banks offer credit cards with travel perks, allowing users to convert their points into airline miles. These miles can be used to book flights, upgrade seats, or even avail of travel discounts. This is particularly beneficial for frequent travelers looking to cut down on travel costs.

3. Shopping Discounts and Gift Certificates

Cardholders can redeem credit points for shopping vouchers or discounts at partner merchants, including malls, online stores, restaurants, and supermarkets.

4. Exclusive Perks and VIP Access

Some credit card reward programs offer exclusive perks such as free airport lounge access, dining privileges, hotel discounts, or priority booking on events.

How to Earn Credit Points Faster

If you want to maximize the benefits of your credit card, here are some strategies to earn more points:

1. Use Your Credit Card for Daily Expenses

Using your credit card for everyday purchases such as groceries, dining, fuel, and utility bills can help you accumulate points quickly. Just make sure to pay your balance in full each month to avoid interest charges.

2. Take Advantage of Bonus Categories

Some banks offer higher points for specific spending categories such as travel, shopping, or dining. Check with your bank to find out which categories earn extra points and use your card accordingly.

3. Look for Special Promotions

Banks often run limited-time promotions where cardholders can earn double or triple points on certain purchases. Staying updated on these promos can help boost your points balance faster.

4. Use Your Credit Card for Big Purchases

If you plan to buy high-value items like appliances, gadgets, or furniture, consider using your credit card to take advantage of the points. Just ensure you can afford to pay off the balance to avoid accumulating debt.

How to Redeem Credit Points

Redeeming credit points is easy, and each bank has different ways to claim rewards. Here’s a general guide on how to do it:

1. Check Your Points Balance

Most banks allow cardholders to check their accumulated points through their mobile banking app, online banking portal, or customer service hotline.

2. Browse the Rewards Catalog

Banks typically provide a rewards catalog listing all the available items, vouchers, or services you can redeem with your points. This can be accessed via their website or mobile app.

3. Redeem Through Online or Phone Banking

Once you have enough points, you can request a redemption through online banking, the bank’s rewards portal, or by calling customer service.

4. Receive Your Rewards

Depending on the reward type, you may receive an electronic voucher, physical gift card, or direct cashback to your account.

Are Credit Points Worth It?

Credit points are a great way to maximize the value of your spending, but they are only worth it if used wisely. Here are some things to keep in mind:

• Avoid Unnecessary Spending – Don’t overspend just to earn points. Interest charges and fees may cancel out the benefits of rewards.
• Check Expiry Dates – Some credit points expire after a certain period, so be sure to redeem them before they are forfeited.
• Understand the Terms – Each credit card has different earning rates and redemption rules. Read the terms to maximize your rewards.

Final Thoughts

Credit points offer an excellent way for Filipinos to get more value out of their credit card usage. By understanding how they work, earning them strategically, and redeeming them wisely, you can enjoy perks such as cashback, airline miles, shopping discounts, and exclusive privileges.

Before applying for a rewards credit card, compare different options and choose one that matches your lifestyle and spending habits. If you’re ready to start earning credit points, explore the best credit card options available today!