When you sign up for a credit card with a rewards program, you dream of the day when you’ll have enough points to redeem them for something of great value.
For some, this comes sooner rather than later. For others, it takes quite a bit of saving. This all comes down to two things:
- How much money you spend on your credit card.
- The reward program itself, such as how many points you earn for each dollar you spend.
From the start, you should fully understand what you can use your points for. This will give you a clear idea of how to save and when the time will come to redeem your points.
Since every credit card reward program is unique in its own way, what you can use your points for may not be the same as the next person. However, here are some basic ideas to consider:
1. Travel
From hotel accommodations to airfare, many rewards programs provide the opportunity to redeem points for travel related perks.
For some, especially those who enjoy traveling a lot, there is nothing better than this. While travel perks typically cost more points than other items, it’s one of the best ways to save money when you decide to take off.
2. Cash
Do you have the option to redeem your points for cash? If so, this is something you’ll definitely want to consider. It may not always make sense, but it could be just what you’re looking for. After all, there is no better feeling than receiving a check in the mail.
3. Gift Cards
While not exactly the same as cash, some rewards programs allow you to redeem your points for gift cards. With a large selection of retailers to choose from, you can put your points to good use. In most cases, you get more bang for your buck when you redeem points for a gift card as compared to cash.
Conclusion
Remember, these are only three of the many things you may be able to use your points for. You should become familiar with all your options, as this is the only true way to make an informed and confident decision.
How have you used your credit card reward points in the past? Would you do the same in the future?
