How do I redeem card rewards?

Credit cards naturally come with plenty of advantages like improving your credit score, having easy access to funds, and rewards for spending. Depending on your card and issuer, you may be able to redeem those rewards as a statement credit, a check, or a direct deposit, as well as for gift cards, merchandise, and more. To redeem the card rewards, you need to log in to your online account or points portal. Next, you should look at the available options and select one that suits you the most. Here are some standard ways to redeem your rewards.

Ways to redeem card rewards

Gift cards - Redeeming points for gift cards is a great way to use your credit card rewards, as it offers flexibility and point-to-dollar value. Additionally, many credit card companies partner with retail stores to throw you an extra perk when you redeem your points from gift cards. You may find gift card options ranging from restaurants to department stores to entertainment services. 

Travel - You can earn points or miles with co-branded airline cards that go to your frequent-flyer account after you pay your credit card bill. You can then redeem these miles for actual flight tickets. However, before redeeming your miles, you should compare the dollar value of the flight with the miles you’re spending to ensure you’re receiving a good deal.

Hotel stays - While traveling, overnight stays can be more expensive than flights. In such cases, it is wise to redeem your rewards for accommodations. Sometimes, the rewards can also be applied for upgrades or extra charges like meals or spa appointments during your stay. 

Online shopping and Subscriptions - If you’re expecting a discount on your next online shopping spree, your credit card issuers let you use rewards points to pay for all or some purchases made at online stores. Rewards points can also be used to purchase things like subscriptions and various other services.

Charity donations and transfers - Some cards let you donate your points to charities partnering with the program. Such instances are most suitable during times of crises or natural disasters as you can help without paying a single penny. You can also give your rewards points to another individual, family member, or a friend if they are part of the same rewards network. 

Getting cash back - Using your rewards for depositing money into your bank account or obtaining a statement credit is a good option. In this manner, you can use the money to pay your bills, add to your savings balance, or reduce your credit debt. Additionally, you can also pay off part of your existing debts or transfer the money into an account that pays you interest.

Takeaway

Ultimately, when determining the best way to redeem card rewards, there are many options, and you should pick the one that is most valuable and suitable for you.