Many credit card holders take for granted the value that comes from reward points. Some of them are contented with occasional redeeming of merchandise items with their accumulated points. Others sadly just let their points expire and go to waste. Many people just don’t realize that they can actually get a lot of benefits from their plastic points.
If you are a cardholder yourself and you wish to find out more about maxing out the benefits from you reward points, read the following tips below.
Accumulate points for better rewards
There is no point redeeming items every time you acquire a few points. Many of these merchandise items give the lowest value to your points, about one cent per reward point. It would have been better to buy these items at a discount using your credit card, giving you a few more extra points. All these accumulated points can acquire of value of several cents a point when used for luxury travel or last-minute flights. Think about the huge difference!
So the name of the game is to save as many points as possible. One way to achieve this is through reward point transfers. Some credit card companies allow cardholders to transfer reward points among multiple accounts. Others allow transferring points to family members and even to co-workers.
Transferring points is also the best option if a cardholder is planning to close an account but does not want the reward points in that account to go to waste. It might not be much, but it surely counts in hitting the big rewards.
Preserve your points by keeping your account in good standing
One of the causes for losing those valuable points, especially if you have accumulated quite a number already, is a failure to make payments on time. Most credit card companies stipulate in their agreements with their cardholders that rewards would be withheld in the event that the cardholder incurs late fees.
The best way to avoid the possibility of late fees is to refrain from overextending your credit card. Going beyond your credit limit or what you know is reasonable for you will likely end up in your inability to pay on time.
Avoid redeeming rewards for statement credits
The prospect of converting reward points into more cash is irresistible to many cardholders. But more logical individuals will know that this is not the best thing to do with their reward points. Such conversions are mostly at one cent per reward point, as is implemented by both Chase’s Sapphire Preferred and Ink Bold. The more discriminating cardholders will use their points instead on travel reservations booked through Chase, a conversion of about 1.25 cents per point.
There is definitely more to credit card reward points. When accumulated over time, they can bring a lot of benefits such as award travels to a cardholder. One only has to be more tactful in choosing the best way to spend these hard-earned points.