Prajna Capital - An Investment Guide

Credit cards don't just substitute for cash, they can also earn you reward points. And you, too, can tap the monetary value of the points collected on your card. How to accumulate points? Every time you swipe your credit card to make a purchase, you collect reward points. Typically, you get one point per Rs 100-250 spent. This, however, depends on the card and the bank. For instance, banks offer more points on co-branded cards. State Bank of India gives one point per Rs 40 spent on its Gold Card and eight points per Rs 100 on its co-branded Tata Card. The value of each reward point also varies across credit cards and banks. The value of a point can be anywhere between 30 paise to a rupee and is also a function of the merchant partner in case of co-branded cards. For example, the value of one point on the SBI Gold Card is 70 paise, while it is Re 1 on the SBI-Tata Card. The limitation with most accelerated reward points on co-branded cards, however, is that they can be redeemed only...