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Rewards are the best use of your credit card points

March 8, 2019 Business 0 Views Image: Sofia Sforza on Unsplash There is no shortage of rewards credit cards out there, and when more players enter the game, redemption increases opportunities as well. But as Dan Frommer points out for Eater, it's probably the best value to redeem your points for travel amounts. You can spend hours every day to calculate and value credit card rewards programs (and actually do many people – there is a whole online industry dedicated to it) to figure out how to get the best deal possible. But as Frommer indicates, if you have a reward card that is not your basic refund card (basic = Capital One Savor *, for example, non-basic = Chase Travel Suite), you will most likely get the most bang for your money by paying in your points for different travel offers, such as flights or hotels. "Specifically, it's usually the best way to transfer your points to affiliate programs for things like award winning business cards and luxury hotels," writes Frommer. "Where you can get a cent per point (or less!) In value making repayment credits, you can easily get twice as much value per point (or much more!) On luxury rewards." This is something the Poultry guy writes about often: Too many consumers seem to take the easier way and redeem their usual points on undervalues ​​for things like goods and even bad repayment proposals. If you do, don't blame yourself too much. Credit cards, airlines and hotels…

Image: Sofia Sforza on Unsplash

There is no shortage of rewards credit cards out there, and when more players enter the game, redemption increases opportunities as well. But as Dan Frommer points out for Eater, it’s probably the best value to redeem your points for travel amounts.

You can spend hours every day to calculate and value credit card rewards programs (and actually do many people – there is a whole online industry dedicated to it) to figure out how to get the best deal possible.

But as Frommer indicates, if you have a reward card that is not your basic refund card (basic = Capital One Savor *, for example, non-basic = Chase Travel Suite), you will most likely get the most bang for your money by paying in your points for different travel offers, such as flights or hotels.

“Specifically, it’s usually the best way to transfer your points to affiliate programs for things like award winning business cards and luxury hotels,” writes Frommer. “Where you can get a cent per point (or less!) In value making repayment credits, you can easily get twice as much value per point (or much more!) On luxury rewards.”

This is something the Poultry guy writes about often:

Too many consumers seem to take the easier way and redeem their usual points on undervalues ​​for things like goods and even bad repayment proposals. If you do, don’t blame yourself too much. Credit cards, airlines and hotels tend to make it easy to make money from your points for low value items or redemption for one reason: it is cheaper for them.

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Spend Your Points on What You Really Want

The “best” value of all is to use your points for something you really want, as Frommer writes in another piece in his newsletter, the Points Party.

But a better way to measure the value of a point income is to consider the big picture: Do you get what you want or need out of this? Because it is ultimately what matters most – and really always put time and energy into this.

Certainly mathematically the best value can be to use your points on a particular flight or in interaction with another program, but if you do not want to take that flight or stay in that hotel it is not really valuable . And, for example, if you don’t plan to travel anywhere but have a high credit card balance, you can get a credit, which can make you more meaningful. It’s all variable.

Points are never worth going into debt over. But with many reward cards that offer registration bonuses if you spend X in Y months, some people can dig in a hole. “No number of points is worth the cost of interest payments or anxiety to feel you are behind,” writes Frommer.

Finally: The score loses its value over time. So use them when you can, as Frommer writes, about what makes you happy. (And read Inventory’s very good interview with Frommer.)

* I have the Capital One Savor card.

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