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Cashing In: 4 Ways To Use Credit Card Rewards

Lindsey Conger

Depending on the type of credit card you signed up for, you might be eligible for many kinds of rewards. A good credit card is often well-worth an annual fee, as long as you are using it properly.

Here are the best ways to redeem your credit card rewards.

Travel

Credit card bonuses are one of the best ways to pay for your upcoming travel plans. If you do it right, you might even be able to pay for your whole air travel using just your points.

An AAdvantage Credit Card gives you 50,000 American Airlines (NYSE: AAL) bonus miles when you spend $2,500 within the first three months of opening the account. This means that you could get a free roundtrip flight to tons of different domestic and international trips for free.

Book An Airbnb Or Vacation Rental

Many hotels offer points and upgrades if you have one of their branded credit cards. However, if you prefer Airbnbs more, there is still a way you can cash in your points to pay for your vacation stay. Some credit cards will let you redeem your points for Airbnb gift cards.

However, sometimes exchanging points in for cash back or gift cards can be a little less rewarding than if you were to cash in for other rewards. If you get less than 1 cent per point or mile, it might be better to cash in your rewards a different way.

Get A Gift Card

Gift cards are one of the best ways to redeem credit card reward points because of its flexibility and value. Some credit card providers will even offer deals on gift cards to certain retailers, giving you a better deal.

Many credit card providers will even allow you to cash in for lower price points, like $25, so you don’t have to have tons of rewards to get the benefits. Most credit card companies will even allow you to cash in your points for credit cards on their mobile app.

Donate To Charity

If you're feeling generous, your points or miles are about to expire, or you're switching credit cards, you can always opt to donate your rewards instead of wasting them on something you don’t need or want. Those miles or reward points can go to someone in need during the holidays or during times of natural disasters. Before you try to donate, make sure to check with your credit card provider to ensure that there is no minimum point donation amount.

No matter what rewards credit card you have, it's possible to cash in for some serious rewards. Make sure to read the fine print of your credit card agreement to make sure you are aware of all spending caps, redemption restrictions or expiration dates. That way, you can get the biggest rewards possible.

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