Redemption Of Rewards Points

Reward point values can vary by the card issuer, so check your card's rewards program guidelines carefully for the full details.

Cash-back rewards often require you to reach to a certain spending amount before you can redeem your points for cash. Or, you may not get full worth for each dollar you spend until you reach to that spending level. Even if your card company does not give you the full amount for your points, at least you'll always know the full value of what you're receiving. It really isn't a lot of money for the amount of spending required to "earn" it, but it is cash. And you will spend the money, even without the rewards point. So it is free money.

Gift card rewards can be the best deal if you get a gift card for a merchant that you normally shop with. Save up your points for gift cards of large denominations. Low value cards typically cost more on per point basis. For example, a $10 gift card may cost 1500 points, but a $100 gift card may cost 10,000 points. Compare the denominations with your card issuer, and delay redeeming your points until you've reached the level where you won't be losing by redemption.

Merchandise rewards point are fun, you can occasionally pamper yourself with some of the luxuries you may not afford. But before redeeming your rewards points for any merchandise, do check what all items are really available. You may even have to pay a premium for the merchandise. I sometimes check directly with the merchants online for some of the items that my card's rewards program offer’s me. Some examples,
ADIDAS Tour 360 II Golf Shoes cost me 23,000 points but retails for only $180,
and many dealers currently have them on sale for $120.
Razor Rip Stick costs 15,500 points but sells for about $75 at most retailers.
Beer of the Months 3-months subscription is for $125 value at 12,500 points, but actually sells for $99 at the company's website.
The Fossil Classic Sports Watch, retailing at about $115 was actually a good deal at 7750 points, equivalent to $77.50 in terms of rewards points.

Travel rewards may also offer a good value on a per-point or per-mile basis, but they can also be difficult to use. Before you redeem your travel points for travel discounts, check on blackout dates, fees to book your travel, and other restrictions that may set hurdles your travel plans.

Charity donations don't give much bang for your points. You will not be able to deduct the donation amount in your taxes because the donation will be made by your card issuer, and not in your name. If you itemize your deductions, it would be better off if you used a cash-back rewards card, donate the cash reward, and take your charitable contribution deduction.

One or Many Rewards Cards

Look into rewards cards that give bonus points, some cards give you 2 to 5 bonus points on purchases that qualify for bonus points and then one point for everything else you purchase. You can really frame up your points by using a combination of different rewards cards based on the types of purchases you make most, and then use the card that gives you the biggest benefit for any given purchase.

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