Credit card points, or miles, are a way for you to earn rewards based on your spending. These points can be redeemed for various benefits like flights, hotel stays, gifts, and more through your card’s loyalty program. The value of points is typically linked to the US dollar, with different cards offering different rates—some may offer 1 point per dollar spent, while premium cards might offer more.
Earning Points on Purchases
To start earning points, you need to enroll your credit card in its loyalty program. Once enrolled, every purchase you make will automatically generate points based on the amount spent. The exchange rate usually references the dollar, so depending on your card, you might earn points at a rate of 1 point per dollar or even 2.2 points per dollar for higher-tier cards.
Redeeming Your Points or Miles
You can redeem your points through your loyalty program’s app or customer service. Points can be exchanged for products, services, or converted into miles with an airline’s loyalty program. This flexibility allows you to use your points to get discounted or even free flights, making your everyday spending work for you in a significant way.
Expiration of Points and Miles
Most credit card points and miles come with an expiration date—typically between 24 and 36 months. If you don’t use your points within this timeframe, they will expire, and you’ll lose out on the rewards. However, some premium credit cards offer points that never expire, giving you more flexibility in how and when you use them.
Selling or Trading Your Points and Miles
There are numerous platforms today that allow you to sell your points or miles for cash, providing an additional way to benefit from your rewards. These platforms facilitate the sale by using your miles to book flights, then paying you in cash. The value of points varies daily, so understanding the buying and selling process, as well as the policies of your loyalty program and the platform, is crucial to avoid any surprises.
Tips for Maximizing Your Points and Miles
- Choose the Right Card: Select a card that aligns with your spending habits. If you travel frequently, a card with higher points on travel purchases may be ideal.
- Monitor Expiration Dates: Keep track of when your points or miles will expire and plan to use them before they do.
- Use for Big Purchases: Use your credit card for large, planned purchases to maximize point accumulation.
- Combine Points and Miles: Some programs allow you to transfer points to different loyalty programs, potentially increasing their value when used strategically.
- Regularly Review Rewards: Check your points balance and available rewards regularly to take full advantage of them.
By understanding how to earn, redeem, and potentially sell your points and miles, you can make your credit card work harder for you, turning everyday spending into valuable rewards.