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8 Ways to Use Your Credit Card Points

Ways to Use Your Credit Card Points

People who own a rewards credit card get many benefits from it. Its use depends on the individual. Some people will prefer to use it to improve their credit score or to access cash anytime, anywhere. However, the function of such a card is, as the name implies, to generate and earn rewards purchase after purchase. 

The benefits provided by the companies that issue rewards cards are a function of how much the user uses his or her card. The more you use your card, the more rewards you will have access to. So it’s good to know what purchases you can get rewards on and whether or not you can take advantage of them. 

Many rewards are also hidden, which is why it often pays off to ask about other benefits of your card. The highlights of a card are often listed in a brochure or the marketing, but there are so many ways to use your credit card points that there is an optimal card for everyone. 

These rewards can range from discounts to cashback, debt repayment, additional purchases, etc. Each company has a different criteria to grant these benefits so you should also know what each company offers and their products. 

Unfortunately, most of the users do not make use of the rewards that their credit card gives them, so they could be wasting unique buying opportunities. That’s why in this article we list 8 ways in which you can take advantage of your credit card rewards. 

1. Get Travel Discounts

Often rewards card users pass up the opportunity without knowing that they can purchase airline tickets and hotel stays at beneficial discounts. Travel rewards can be redeemed when the user has a lot of accumulated points. Of course, travel rewards have date restrictions so they are subject to redemption policies, so some benefits are cumulative. For example, Marriott card benefits include up to 70,000 initial bonus points that are good for people who often stay at Marriott hotels. If you decide to make use of your points, it’ll be as simple as logging into the rewards portal and getting your discount.

2. Online Shopping

Your credit card rewards points can provide you with discounts on your online purchases or even cash back. Each credit card company has its own rewards, but some allow accumulated points to be used to pay for all or part of your purchases at certain online merchants. 

3. Find the Hidden Benefits

Sometimes, the fine print in credit card contracts goes unnoticed by the user, who doesn’t realize that there are hidden benefits on their card. For example, Chase Sapphire Preferred card users can redeem their points and earn Marriott rewards, among other perks. In addition, many Visa and MasterCard cards have indirect rewards on some services. It’s wise to read contracts carefully and find benefits that companies don’t mention but that you can discover for yourself. 

4. Be on Time With Your Payments

It may seem like a pretty obvious point, but what many card users don’t know about their card is that as interest accrues the rewards lose value. So, as with any other credit card, be on time with your payments so you can continue to enjoy the rewards it offers. 

5. Gift Cards

Another way to use your rewards is to purchase gift cards. Recipients of gift cards often appreciate them because they offer value and flexibility. Many merchants have partnerships with credit card companies to offer additional benefits to their customers. For example, the First Citizen Citi card provides rewards and points that you can use to shop at Shoppers Stop Outlet.

6. Earn Cash Back

A great way to use your rewards points is to get cash deposited directly into your bank account or get a statement credit.  With this money you can make your outstanding payments, save or reduce your credit card debt. You can even use rewards to pay off some of your existing debt. If you know how to use your credit card rewards, you can make the most of them and help stabilize your finances. For example, Capital One’s Quicksilver card gives you cash back on your purchases.

7. Bonus Offers

If you’re earning one point for every dollar spent, you’re probably missing out on additional rewards. Credit card issuers often offer bonuses that can boost your rewards. It’s important to pay attention to promotions so you can take advantage of them and earn more rewards with your credit card.

8. Donate Rewards

There is a more charitable way to use your rewards than making discounted purchases or redeeming them for gift cards for your family members. You can donate them. For example, when you can’t make the most of your points and the expiration date is near, you can make a donation of reward points to charitable causes. This is a good way to take advantage of the rewards while helping a good cause. Just be aware that some companies require a minimum number of points to donate, so be careful to review your accumulated points for this use.

As you can see there are many ways to use your credit card reward points. It is important that you calculate the monetary value of your points so that you can use them and make the best use of them. Or, you can also get a credit card that does not award points but offers cash back as a reward. 

Credit card contracts are a document that should be read and understood carefully. This will help you choose the right credit card for you and maximize the rewards. Sometimes the fine print can make or break you if you don’t know it, so it’s best to read the full disclosure. 

The benefits of redeemable points are an opportunity that the user can take advantage of by knowing and handling the product properly. 

Featured Image: Megapixl

About the author: Matthew is a financial writer, essayist, and editor of several publications. He writes books for fun and travels as a challenge to see every country.

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