Key takeaways
- Present card redemption is commonly seen as much less beneficial than different redemption choices, which is true most often.
- Redeeming rewards for journey sometimes — although not at all times — gives essentially the most bang to your buck.
- In the event you select to redeem rewards for reward playing cards, search for promotions or bonuses to make it particularly worthwhile.
Many bank card issuers help you buy reward playing cards utilizing factors, miles or money again — however are the redemptions value it?
It relies upon.
Why redeem rewards for reward playing cards?
There are various causes to redeem rewards for reward playing cards. You may resolve to take action as a result of:
- You should use reward playing cards to cowl a easy reward. As soon as you buy a present card utilizing rewards, you possibly can then use it to purchase presents and even reward the cardboard itself. For instance, a Sephora or Ulta reward card could also be a strong birthday current if somebody who loves make-up. Or, should you want a present for a child bathe, you might purchase a Goal reward card and use it to buy the infant reward.
- You possibly can forestall your bank card rewards from expiring on account of account inactivity. The principles concerning rewards expiration differ by bank card, so in case your factors will expire quickly, you must use them earlier than you lose them.
The redemption worth of reward playing cards
The worth of your reward card redemption will differ by bank card and whether or not further promotions can be found.
Traditionally, reward card redemption has been seen as much less beneficial in comparison with different redemption choices — which remains to be true most often. Nevertheless, with playing cards just like the Citi Rewards+® Card*, for instance, you’ll get extra worth to your factors when redeeming for reward playing cards (1 cent apiece) in comparison with redeeming them for money again (0.5 cents a chunk).
Present card redemptions vs. journey redemptions
Usually, redeeming rewards for journey as an alternative of reward playing cards will get you the perfect worth to your cash. With the Chase Sapphire Most well-liked® Card, for instance, you’ll earn 1.25 cents per level on journey redeemed via Chase Journey℠ and 1.5 cents per level within the case of the Chase Sapphire Reserve®. Additional, there’s the potential for even larger reward worth if you switch rewards to a card’s lodge or airline companion. Within the case of the Sapphire Reserve, factors could be value about 2.0 cents apiece towards high-value Chase switch companion journey, in keeping with Bankrate’s valuations.
What about reward card promotional gives?
Some bank cards provide reductions when redeeming your rewards for reward playing cards, which means you’ll pay lower than the cardboard’s face worth. For instance, a $25 reward card could solely value you $20, in different phrases, you get to maintain cash in your pocket for the subsequent particular person in your record.
In earlier years, Chase has provided a ten % low cost on reward card redemptions for manufacturers like Macy’s and Panera Bread. Details about these gives sometimes comes on to your inbox, however you can even verify for updates on pages in your on-line account, resembling Chase Gives and Amex Gives.
Do reward playing cards expire?
Greater than two in 5 U.S. adults (43 %) have no less than one unused reward card, in keeping with Bankrate’s 2024 Present Card Survey — which implies many individuals are leaving cash on the desk.
Happily, as a result of CARD Act of 2009, reward playing cards distributed by card issuers can’t expire for no less than 5 years after the date of activation. Precise expiration insurance policies differ by reward card service provider and card issuer and could be discovered within the card’s phrases and situations.
The underside line
Redeeming rewards for journey sometimes gives essentially the most worth, however that doesn’t imply it’s not worthwhile to typically redeem your rewards for reward playing cards. Redeeming rewards for reward playing cards can help you reap the benefits of promotions or just expend factors to maintain your account lively.
In the event you don’t have upcoming journey plans or your factors are on the verge of expiring, it might make sense to discover this route.
*Details about the Citi Rewards+® Card has been collected independently by Bankrate. Card particulars haven’t been reviewed or accepted by the issuer.
