3 Smart Ways to Use Your Credit Card Points

how to use credit card points

Credit card points are the best thing since macaroni and cheese if you know how to use the points to your advantage. However, credit card points are largely misunderstood. With so many credit cards on the market and stiff competition between each company, credit card points are more lucrative than ever.

Credit cards offer all different types of rewards. Everything from traditional cash back to points you can use on travel and other perks like annual savings on Uber and credit towards TSA Precheck or Global Entry. There are so many ways you can use your credit card points to put more cash back in your pocket.

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Loyalty Programs

It’s no secret that credit card points can be used towards booking travel. Whether you need a plane ticket, rental car or overnight accomodations, you can use your credit card points instead of cash to make those purchases. Many experts argue, but it’s largely understood that using credit card points for travel is one of the smartest ways to leverage your points.

It’s true that you can transfer your credit card points to different airlines and hotel partners easily. However, one of the best ways to use your credit card points is with credit card loyalty programs. Credit cards like the popular Chase Sapphire Preferred card offer an incentive to book travel through its loyalty program website.

With Chase, you receive a 25 percent booking bonus if you book travel through its loyalty site, Chase Ultimate Rewards. This can be a massive advantage if you’re trying to make your credit points stretch a little further. Always be sure to check your rewards credit card for any loyalty bonus offers that will stretch your points.

Charity Donations

There are over one million charities in the U.S. and over 105,000 private foundations that are in need every year of donations. Even with the recent changes in U.S. tax law, charitable donations just make you feel good, and you can still reap a tax benefit from your donation.

Credit card points are usually worth about one cent per point, and most credit cards will offer you one point per dollar spent.

Using credit card points for a charitable donation is a great way to leverage your points to help someone else in need. While some charities will accept your points as a donation, a smarter strategy is to turn your points into cash back and then donate that cash. Credit cards like the Citi Double Cash card and Discover it credit card can help you quickly build rack cash back that you can use to donate to your favorite charity.

Shopping Online

Many credit cards now offer opportunities to shop with your points on third-party websites. Some of the most popular credit cards like Chase and American Express have made shopping with your points easy. Credit card points now transfer to companies such as Amazon, Uber, Target and more. Shopping with points can be a great way to leverage the points you have to make everyday purchases.

Many different shopping portals can offer a great way to earn extra points and miles when you shop online. If you want to get the best bang for your credit card points, you can use shopping portal aggregators like Cashbackmonitor.com to search for your preferred shopping site and the various earning rates for cash back, points and miles.

Credit card points are usually worth about one cent per point, and most credit cards will offer you one point per dollar spent, but that can vary depending on your credit card. Now is a great time to investigate your credit card points if you aren’t sure what type of rewards your card offers. Credit card points and cash back are great incentives to using a credit card for your everyday purchases. If you practice good credit card management and pay your card off in full each month, you can take advantage of all the perks without having to deal with high-interest rate charges.