There are many advantages associated with a rewards credit card. All credit cards offer great value due to varied reasons, from ready and easy access to funds to improving the credit score. The best advantage of credit cards, however, is with a rewards credit card wherein consumers earn rewards whenever they shop.
Listed below are some of the ways in which you can redeem your credit card reward points.
- Cashback for rewards: One of the best ways to redeem reward points is getting cash deposited in your savings account. Such money can be used to pay credit card debt, pay bills, or increase your savings.
- Using rewards when shopping online: Credit card rewards can be used to get cash backs or get a discount when shopping online. Some credit card companies allow customers to use the reward points to make full or part-payments for purchases at specific online stores.
- Get gift cards for rewards: One of the best ways to redeem credit card reward points is buying gift cards with it. Gift cards come with increased flexibility and value for users. Also, there are several credit card providers who team up with retail chains to offer additional incentives when reward points are used for the purchase of gift cards. Thus, if you use points worth $25 to purchase a gift card, then you may get an additional gift card worth $30. Also, some credit card companies allow customers to use fewer reward points to purchase a gift card as compared to points used for purchasing some other reward-points-related item.
- Check for bonus offers: If one point is earned for one dollar that you spend using your credit card, then there is a possibility that you may be missing out on certain rewards. Bonus offers are rolled out by credit card companies from time to time. Hence, keep a watch for such offers. Some such bonus offers can be double or 3-times the cashback when customers shop via the card issuers’ online rewards platform.
- Donate the reward points to charity: Besides redeeming the credit card reward points for your own benefit or to buy gift cards, customers can share the points in many other ways as well. There are many credit card providers who provide the option of donating the credit card reward points to different charitable institutions and causes. It is important to remember that certain companies come with a requirement of a certain level of minimum reward points on the card before they can be donated. Hence, verify it before making a donation.
- Discounts on bookings for flights and hotels: Hundreds of dollars can be saved by customers on hotel bookings and airfare when they redeem their credit card reward points for travel. It may be noted that you have to save up a lot of reward points to be able to use it for travel discounts. Another hindrance is the fact that the reward points cannot be used for travel on certain dates. The best thing for customers is to keep saving the reward points, avoid the blackout travel dates, and redeem the points to get heavy discounts on accommodations and airfare. Customers can get discounts by logging into their online reward portal.