How to Redeem and Get the Most Out of Your Credit Card Rewards

So, you've diligently swiped your credit card and now you're sitting on a pile of rewards. Fantastic! But the next step, actually using those rewards – can be overwhelming.

While some credit card rewards like cashback are straightforward, things can get a tad more complex when you're dealing with miles. Suddenly, you're faced with choices: do you go through your credit card travel portal, or book directly with the airline or hotel? How do points translate into monetary discounts or benefits with your credit card’s airline or hotel partners? The list goes on.

And these days, the possibilities extend beyond just cash or flights. You might find options to redeem credit card rewards for anything from shopping vouchers to even offsetting your bills.

If you’re already feeling dizzy at all the options, don’t worry! The key is to start with a clear goal. What do you want to use your rewards for? Once you know that, understanding how to redeem your credit card rewards becomes much simpler. We'll guide you through the common redemption methods, helping you make the most of your hard-earned perks.

>> Learn more: Best rewards credit cards

The first step to enjoying your credit card perks is knowing how to access them. Typically, this involves logging into your online credit card account or the associated loyalty programme.

1. Log in to your account:

• Access your credit card's online banking portal or mobile application. For example, if you want to redeem rewards for a Citibank credit card, head to the Citibank Online platform or the CIti Mobile App. Similarly, if you’re wondering how to redeem UOB credit card rewards, log in to your UOB Personal Internet Banking or the UOB TMRW app.

2. Locate your rewards balance:

• Once logged in, look for your rewards balance. This is often displayed prominently on the homepage or dashboard.

• Alternatively, there might be a dedicated section labelled "Rewards," "Points Summary," or similar. 

3. Look for pending rewards:

• Be aware that some of the rewards shown might be listed as "pending." These are typically from recent transactions that are still being processed.

• You'll usually need these pending rewards to become confirmed before you can redeem them.

4. Check your redemption requirements:

• Note any minimum points or spending milestones required for redemption. For example, to redeem DBS credit card rewards, you might need to accumulate a certain number of DBS Points before you can convert them.

• Be aware that some cards might have specific redemption windows or require you to wait until the end of your billing cycle for rewards to be available.

By following these steps, you'll be able to access your credit card rewards information and understand when and how you can start the redemption process.

>> Learn more: Basics of credit card points

1. How to start redeeming cashback rewards

When you're ready to enjoy the cashback you've earned, credit card companies in Singapore typically provide several convenient methods to redeem cashback credit card rewards. 

One common option is receiving a statement credit. This gives you the flexibility to decide when and how much of your outstanding credit card balance you want to reduce using your accumulated cashback. You might be able to apply the full available amount or specify a particular sum to offset your current statement. 

Another method is automatic deduction, where your earned cashback is automatically applied to lower your credit card bill each month. In some instances, a direct deposit into your bank account might be available.

The frequency with which you receive your cashback can vary across different credit cards. Certain cards might offer daily cashback, crediting your account as soon as transactions are processed. Others might accumulate your cashback and disburse it on a monthly basis, often at the end of your billing cycle. You might even encounter cards with quarterly cashback payouts. It's always a good idea to review your card's specific terms and conditions to understand its cashback schedule.

Despite the straightforward name "cashback," it's important to understand that in Singapore, the redemption process rarely involves receiving actual physical cash. 

The vast majority of credit card companies will apply the "cashback" you've earned as a credit to your credit card statement, effectively lowering the amount you owe. 

However, in the less common scenario where a direct deposit is an option, you will almost certainly need to have an existing bank account with the same financial institution that issued your credit card. It is highly unlikely that they will facilitate a direct transfer of your cashback to a bank account held with a different bank.

2. How to redeem credit card rewards to use for shopping

Many credit card rewards programmes offer the appealing option of using your accumulated points to offset your shopping expenses. This can take the form of redeeming points for store credit or directly applying them as discounts on purchases from specific partner merchants. 

You might find opportunities to redeem rewards for discounts on platforms like Lazada or Shopee, or even at supermarkets like NTUC FairPrice. While the precise steps to redeem credit card rewards for shopping can vary depending on the specific store and credit card provider, the redemption process often begins through your credit card provider's online rewards portal or mobile application. 

From there, you would typically browse available shopping rewards, select the desired store or discount, and follow the on-screen instructions to complete the redemption.

However, redeeming store credit card rewards can sometimes come with its own set of limitations and complexities. 

For instance, you might be required to provide specific membership details for the partner merchant, adding an extra step to the process. Juggling multiple logins – one for your credit card account and another for the store's platform – can also be cumbersome. 

The user interface and experience (UI/UX) for navigating the redemption options might not always be straightforward, potentially involving multiple layers and clicks. In some cases, particularly with rewards tied to physical stores, you might even need to visit a physical outlet to complete the redemption, which can be less convenient than online options.

>> Learn more: Explore a list of shopping credit cards

3. How to redeem credit card rewards for miles and travel

One of the most aspirational ways to redeem credit card rewards is for travel, unlocking opportunities for discounted or even free flights and hotel stays. Miles and some rewards credit cards in Singapore offer the ability to convert your accumulated points into air miles or hotel loyalty points, effectively turning your everyday spending into your next getaway.

Most major banks in Singapore have their own rewards portals that act as a central hub for travel redemptions. Platforms like Citi ThankYou® Points or UOB Rewards facilitate the conversion of your credit card points into miles with various airline partners or points with hotel loyalty programmes.

For those looking to maximise their travel rewards, transferring your credit card points to airline or hotel loyalty programmes can be a strategic move. Popular programmes in Singapore include Singapore Airlines KrisFlyer (for miles) and Marriott Bonvoy (for hotels). 

The process typically involves linking your credit card account with your frequent flyer or hotel loyalty account through the bank's rewards portal. Once linked, you can transfer your credit card points at a predetermined ratio into the respective programme's currency (miles or points). 

Here’s a general guide on how this often works:

1. Log in to your credit card rewards portal: Access platforms like Citi ThankYou® or UOB Rewards.

2. Navigate to the "Travel" or "Points Transfer" section.

3. Select the airline or hotel partner you wish to transfer to: Options often include Singapore Airlines KrisFlyer, Cathay Pacific Asia Miles, and hotel programmes like Marriott Bonvoy or Hilton Honors.

4. Enter your frequent flyer or hotel loyalty programme membership number. This step links your accounts.

5. Specify the number of credit card points you want to transfer. Be mindful of minimum transfer amounts and the conversion ratio (e.g., 10,000 credit card points might convert to 5,000 KrisFlyer miles).

6. Confirm the transfer. Once confirmed, the points will typically appear in your airline or hotel loyalty account within a few business days. Take note that credit card providers will typically charge a processing fee when you convert credit card points into airline miles or hotel rewards.

It's also important to be aware that credit card miles and airline miles or hotel loyalty points often have separate expiry dates. This adds another layer of management, requiring you to track both to ensure you utilise your rewards before they lapse.

>> Learn more: Cashback vs travel miles, which credit card should you choose?

4. How to redeem credit card rewards for gift cards

Redeeming your credit card rewards for gift cards can be a practical and flexible option, especially in certain situations. One key benefit is that it offers a way to preserve the value of your expiring rewards without feeling pressured to make an immediate purchase on something you might not truly need. 

By opting for a gift card from a retailer you frequent or might shop at in the future, you essentially lock in the value of your points for a later date, giving you more time and flexibility in your spending.

Here’s a general idea of how you might redeem credit card rewards for gift cards through your credit card's rewards portal:

1. Access your credit card rewards portal: Log in to your online banking or mobile app and navigate to the rewards section, similar to how you would for other redemptions.

2. Browse the gift card options: Look for a catalogue or list of available gift cards. These are often categorised by retailer or value. You might find gift cards for popular shopping destinations, dining establishments, or online platforms.

3. Select your desired gift card: Choose the retailer and the denomination of the gift card you want to redeem. The portal will typically display the number of points required for each option.

4. Follow the redemption instructions: Add the chosen gift card to your "cart" or selection and proceed to checkout within the rewards portal. You might need to confirm your mailing address if a physical gift card is being sent, or your email address if it's an e-gift card.

5. Confirm your redemption: Review the details and confirm your redemption. The corresponding points will be deducted from your rewards balance.

Once processed, physical gift cards will usually be mailed to your registered address, while e-gift cards are typically sent to your registered email address within a specified timeframe. 

>> Learn more: What are some of the best gift cards in Singapore?

5. How to instantly redeem credit card rewards 

Certain modern credit cards now offer the convenience of instant rewards redemption, providing cardholders with immediate access to their earned perks. 

For example, some Citibank credit cards allow you to redeem reward points by instantly offsetting a recent purchase directly through the Citi Mobile App. After making a transaction, you might see an option within the app that allows you to "use points" to partially or fully cover the cost of that specific purchase with your available rewards. This eliminates the traditional waiting period associated with statement credits or other redemption methods.

The primary benefit of instant rewards redemption is the near real-time access to your earnings. Whether it's instant cashback or the immediate application of points to a purchase, you can see the value of your rewards almost instantaneously.

Finally, before you start redeeming, it’s important to understand that not all credit card rewards are created equal. The value you get from your points or miles can fluctuate significantly depending on how you choose to redeem them and which partners are involved. 

For instance, the monetary value of a thousand points might differ substantially if you opt for cashback compared to using them for airline miles. Some redemption pathways simply offer a better return on your spending than others.

Therefore, it pays to be diligent and compare the value of your rewards across various redemption options. To do this objectively, most people will calculate the “dollar per point” or “dollar per mile” you're getting for each option. By taking the time to evaluate these different scenarios, you can strategically choose the redemption method that provides you with the highest possible value for your credit card rewards.

Before you hit "redeem”, know that redemption rules vary between different card issuers, and even between different cards from the same issuer. Ignoring the fine print can lead to disappointment and lost rewards. 

Here are key things to watch out for:

• Expiration dates: Many rewards have expiry dates. Redeem them before they vanish.

• Account status: Your account usually needs to be in good standing. Overdue payments can block redemptions.

• Minimum payments: Some cards require you to have made minimum payments. Not doing so might affect redemptions.

• Transaction types: Certain purchases might not earn rewards. Similarly, some redemptions might have transaction limits.

• Minimum redemption amounts: There's often a minimum points or value needed to redeem. You might need a certain balance before you can use your rewards.

• Processing fees: Transferring to airline or hotel programmes often incurs fees. Factor these into your calculations.

• Programme changes: Card companies can change their rewards programmes. Stay updated on any modifications.

>> Learn more: Are you making the most out of your credit card points?