How to use credit card points to your advantage

KEY TAKEAWAYS

✔ Most credit card companies offer reward programs where you collect points based on your spending. 

✔ Credit card reward points provide many options for redeeming – from everyday necessities like gas and groceries to retail gift cards and travel.

✔ Understand your options and choose what works for you whether it is a gift for someone or to treat yourself.

Credit cards are convenient for shopping online and in-store. Used responsibly, they are a good way to build and strengthen your credit score. When selecting a credit card, you may have chosen one that involves earning points based on your spending and then redeeming them for products, gift cards and other rewards. 

A credit card with rewards can be a great way to treat yourself, buy a gift or pay down your credit card balance. Here are some tips to consider when redeeming your credit card rewards:

Buying gifts

One of the best ways to use your credit card rewards is to let the point balance grow all year and then redeem your points for gift cards. If you are on a budget, redeeming points can help you save money. You can give the gift cards as presents (they typically look like standard retail gift cards, so no one will know you used your reward points to get them). Or, use them to buy something nice for your loved ones. If you don’t see the retailer you want on their list, you can simply look at a prepaid credit card instead. These make a great gift because they can be used wherever credit cards are accepted which means more options to buy than with just one retailer. 

Be practical

Many credit card reward programs include practical options for redeeming your points for things like gas, groceries, tech or home improvement. Redeeming points for practical purchases is an excellent way to use them and in many cases, can help to free up some extra cash elsewhere in your budget. After all, if you save $50 on gas or groceries while otherwise sticking to your monthly budget, you’ve got extra money to use towards paying down bills or covering other expenses.

Treat yourself

If you’ve been diligently sticking to your budget, there’s no harm in using your reward points to treat yourself. Use them to get a gift card or redeem them for whatever services or merchandise you’ve had your eye on. You might be surprised at the wide selection of things available through credit card reward catalogues, from beauty goods to household items or hotel and travel vouchers. And because these treats aren’t coming out of your regular monthly budget, you can spend and enjoy them guilt-free.

Put points toward your balance

Many credit card reward programs offer the option of using points to pay off some of your balance. This is an excellent way to use your points smartly and effectively. It may be as small as $25 off your monthly bill, but every dollar counts. Your reward will be a smaller interest payment and more cash in your pocket! 

We are here to help

These credit card reward hacks are great, but sometimes you need personalized help. If you’re dealing with financial challenges and could use a personal loan to help cover your expenses, please contact your easyfinancial branch or call us at 1-888-502-3279. We know that each of our customers’ situations is unique, and we are committed to working with you to help find a solution that best fits your needs. After all, we’re here to help.

Disclaimer: This content is intended for informational purposes only and does not constitute financial advice on any subject matter.