Buzz
Credit card rewards can be used for a variety of perks: from statement credits and flights to hotel bookings, gift cards, charitable donations, merchandise, and more.
While some of us frequently redeem our points, miles, and cash, many aren't fully aware of just how many rewards they've accumulated, let alone how they might want to spend them.
It’s time to log into your credit card accounts, check your accumulated rewards, and start putting them to good use.
The holiday season is a great opportunity to make the most of your credit card rewards, whether that means booking flights, purchasing gift cards, using points at participating retailers, or applying your rewards to reduce your holiday credit card bill.
Naturally, it’s important to consider the value of each credit card reward option. Some cards offer more value when you redeem miles for travel, while others may assign different values to points when used for statement credits, merchandise, or gift cards.
For instance, if you have the Chase Sapphire Preferred card, here’s how your points break down:
When redeeming points for cash or gift cards, each point is valued at $0.01 (one cent), meaning 100 points equals $1 in redemption value.
When using points with Chase Pay® for a statement credit on purchases made at eligible Chase Pay® merchants, each point is worth $0.008, so 100 points equals $0.80 in redemption value.
Redemption values for other reward options could be higher or lower than this amount.
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When you redeem points for travel via Chase Ultimate Rewards, you get 25% more value:
Each point redeemed for travel through the program is worth $0.0125 (one and a quarter cents), meaning that 100 points is equivalent to $1.25 in value, as opposed to the $1 cash redemption value.
So, be sure to check the fine print, understand how to get the most out of your rewards, and use them to ease the financial burden of the holiday season. After all, you’ve earned these rewards—and they won’t save you anything until you redeem them.
