The best way to use credit card points is for travel purchases, according to a WalletHub research. That’s because issuers usually offer the best value on this particular category.
However, the best way to use credit card points will vary depending on what credit cardyou have. Your points could be worth just as much (or even more) in cash back or gift cards. So, it’s a good idea to check the value of all the redemption methods before you redeem your points.
The best way to find out what your points are worth is to log into your credit card account online. Then, look for a rewards redemption section, and see how many points are needed for merchandise, cash back, gift cards, and travel. Then, find out how much you’d pay for those things outside of the redemption portal and do a points-to-dollars comparison. For example, if 100 points gets you 75 cents of a gift card, or $1 in plane tickets, you should go with the plane ticket.
This answer was last updated on 07/27/23 and it was first published on 01/17/20. For the most current information about a financial product, you should always check and confirm accuracy with the offering financial institution. Editorial and user-generated content is not provided, reviewed or endorsed by any company.
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