5 Best Rewards Credit Cards and Ways You Can Use Your Points

Credit card points are a great way to earn rewards on everyday purchases. When you use your credit card for purchases, you can earn points that you can then redeem for cashback, travel rewards, or other benefits. In this blog post, we'll go over how to use credit card points and compare the best rewards credit cards available based on rewards, welcome bonuses, annual fees, necessary credit, foreign transaction fees, and pros and cons.

‍

Ways to use Credit Card Points

Most credit card companies award points based on credit card usage frequency, repayment attitude, and other criteria determined by the company. Here are some options for using credit card reward points:

Read more: Top 5 Shopping Extensions to Save Money Online

1. Travel Rewards

One of the most popular uses of credit card points is for travel rewards. Your points can be redeemed for flights, hotels, car rentals, and other travel-related expenses. Many credit cards have agreements with airlines and hotels that allow you to earn more points and get better deals.

2. Cashback

Many credit cards allow you to redeem your points for statement credits if you prefer cashback. This can help you reduce your balance and invest money in your wallet.

3. Gift Cards

Some credit cards allow you to redeem your points for gift cards to well-known retailers or restaurants. This can be an excellent way to treat yourself or to purchase gifts for others.

4. Merchandise

You can also use credit card points to buy items from a rewards catalog. This can range from electronics to household goods to clothing.

5. Charitable Donations

Some credit card companies allow you to donate your points to your favorite charity. This is an excellent way to contribute to a worthwhile cause without spending any money.

Now, let's look at some of the best rewards credit cards on the market and compare them based on rewards, welcome bonuses, annual fees, credit required, foreign transaction fees, and pros and cons.

‍

1. Chase Sapphire Preferred

The Chase Sapphire Preferred is a popular rewards credit card that provides a variety of travel benefits.

Rewards: Earn 2x points on travel and 3x for dining, and 1x points on everything else.
Welcome Bonus: Earn 100,000 points after spending $4,000 in the first 3 months.
Annual Fee: $95.
Credit Needed: Good to excellent.
Foreign Transaction Fee: None.
Pros: Large welcome bonus, flexible redemption options, good rewards rate on travel and dining.
Cons: Annual fee.

‍

2. Capital One Venture Rewards

Another popular pick for travelers is the Capital One Venture Rewards credit card.

Rewards: Unlimited 1.25 miles per dollar on every purchase, plus 5 miles per dollar on hotels and rental cars booked through Capital One Travel
Welcome Bonus: Earn 75,000 bonus miles once you spend $4,000 on purchases within the first 3 months from account opening.
Annual Fee: $95.
Credit Needed: Good to excellent.
Foreign Transaction Fee: None.
Pros: Simple redemption process, no blackout dates, good rewards rate on every purchase.
Cons: High annual fee.
‍

‍3. American Express Gold

For people who spend a lot of money on dining and groceries, the American Express Gold credit card is a great option.

Rewards: Earn 4x points on dining and grocery purchases, 4 points per dollar on restaurant purchases, 3x points on flights booked directly with airlines, and 1x points on everything else.
Welcome Bonus: Earn 60,000 points after spending $4,000 in the first 6 months.
Annual Fee: $250.
Credit Needed: Good to excellent.
Foreign Transaction Fee: None.
Pros: High rewards rate on dining and groceries, good rewards rate on flights, access to exclusive experiences and events.
Cons: High annual fee, limited travel benefits.

‍

‍‍

4. Citi Double Cash

The Citi Double Cash credit card is an excellent option for those looking for a straightforward cashback rewards program.

Rewards: Earn 2% cashback on every purchase – 1% when you buy and 1% when you pay.
Welcome Bonus: None.
Annual Fee: None.
Credit Needed: Good to excellent.
Foreign Transaction Fee: 3%.
Pros: No annual fee, simple cashback rewards program, good rewards rate on every purchase.
Cons: Foreign transaction fee.

‍

5. Discover it Cash Back

The Discover it Cash Back credit card is another great option for those looking for a simple cashback rewards program.

Rewards: Earn 5% cashback on rotating categories each quarter, up to $1,500 per quarter when you activate, and 1% cashback on everything else.
Welcome Bonus: Discover will match all the cashback you've earned at the end of your first year.
Annual Fee: None.
Credit Needed: Good to excellent.
Foreign Transaction Fee: None.
Pros: No annual fee, rotating cashback categories, generous welcome bonus.
Cons: Requires activation to earn cashback in rotating categories.

Comparison Table:

Tips:

It is essential to remember to use credit card points wisely and strategically in order to maximize their value. Consider the various redemption options and their respective values, and select the option that provides the best value for your points.
Statement credits are a good option for those who want to offset the cost of their purchases, while gift cards and merchandise are good options for those who prefer tangible rewards.
Exclusive access to events or VIP experiences, for example, can also be a great way to use your points for something unique and memorable.
It's also important to stay organized and keep track of your points' expiration dates. Some credit cards have point expiration dates, whereas others allow you to accumulate points indefinitely. To stay informed, read the terms and conditions of your credit card.
To avoid high-interest charges and fees, always use credit responsibly and pay off your balances in full each month

Read more: 7 Tips to Save Money While Shopping

Now that you know the different rewards of each credit card, you can choose your credit card points wisely to earn rewards on everyday purchases. You can maximize the value of your points and enjoy the benefits of free travel, statement credits, and other reward.