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Are Rewards Points Offering The Benefits They Claim To?

Are Rewards Points Offering The Benefits They Claim To?
Viveka Rao
Written by Viveka Rao

Are You Actually Getting What Your Credit Card Offers?

Are Rewards Points Offering The Benefits They Claim To?Credit cards offer different types of rewards to customers, such as reward points, cash back, special discounts, and offers. However, some people think that credit cards only claim to offer these perks, but do not actually provide them. However, this is 100% false. Whatever credit cards claim to provide their customers, they actually do! Celebrate!

After all, the very reputation of credit card issuers is built on what they offer their clients and thus keep their word. Credit card companies lure customers to get their credit cards by offering sign up bonuses, rewards on select stores, and other such benefits and then actually provide these rewards.

Remember, credit cards charge a small fee to merchants each time the card is swiped. Essentially they are making money every time you buy something too! All your rewards and benefits are paid for from the small merchant fees adding up.

When it comes to the benefits offered through reward points, there are a lot of options. You can trade your reward points for flights or gift cards. You can get some free stuff too, when you redeem your credit card points, which include vacations and cash back. With so many options out there, the point is how you can make the most of the benefits offered through reward points.

You can do so by using your credit card reward points in a smart way. For instance, you should get an international ticket instead of buying something from the overpriced catalog of your credit card company. So, let us look at some of the best ways through which you can take advantage of your credit card rewards.

In Case You Do Not Already Know…

1. Cash back

The best way to use your credit card reward points is to get statement credits or cash back. It is the most flexible and simplest reward offered by credit card companies. This transparent and straightforward route will help you get the most out of your credit card reward points.

Credit cards tell you the conversion rate as to what one reward point will be equal to. You can read that in the fine print and know the true value of each reward point, unlike other reward types. If you frequently shop on Amazon, you can also consider credit cards that offer rewards for Amazon purchases. Plus, you can also convert your frequent flier miles into gift cards or cash.

The cash back reward allows you to know what you are getting. Plus, you can use it for anything you want. However, some other reward options can make your miles or points go farther as compared to cash back. Additionally, you also have to achieve a specific threshold prior to redeeming your reward points for cash.

2. Gift cards

Gift cards are great for getting things you want and discounted gifts. You can also give gift cards as gifts to someone else. Plus, gift cards are offered during the rewards sale of a credit card company. However, gift cards are of no use, if you buy unnecessary stuff from them or would not use them.

It is important that you get gift cards only when they are discounted. This way you can get much more as compared to the usual cash back rewards. This also means that you should not get gift cards against your reward points unless they are discounted. You must try to find a section that says “rewards on sale” in your credit card program in order to see what all things are available.

Thus, gift cards are a great benefit of reward points, only if they are useful to you and are offered at a great discount. However, gift cards can make you buy unnecessary stuff and spend more than you aim to. So, make sure that you use your gift cards wisely.

3. Merchandise awards

You can also get merchandise awards, such as a blender or digital camera, against your reward points. However, you need to compare their prices and see if you are not giving extra for the merchandise you get.

You must check whether it is a good deal or not. Getting merchandise rewards against your reward points is a good option, if you do not want to redeem your points for travel, as this way you can get things that you need.

No matter which option you go for, whether just one reward type or a mixture, ensure that you definitely use your rewards. Reward points are worth nothing, if they expire or you do not use them.

About the author

Viveka Rao

Viveka Rao

Viveka Rao is post grad in finance and a freelance writer here at CreditSmart. A love for shopping and travel rewards has fueled her interest in personal credit, and making the most of rewards programs. She writes to educate other consumers in making great financial choices.

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