If you have a Credit card that has tons of rewards that are yet to be redeemed, then I would be giving you the How to Redeem Credit Card Reward. Reward programs now offer prime opportunities to get a payoff from your credit card purchases.
In other to maximize that payoff, you would be required to know all you can on redeeming cash back, points, or miles that you have acquired. The kind of reward you redeem depends on the type of reward your card is earning. And here, I would be offering details on all of them.
Types of Reward Credit Cards
There are three main types of Credit Card rewards. They include:
Cash Back Cards
These cards reward you with a percentage of the purchases that you make on this card. Most cash-back cards are either a flat rate, bonus category, or tiered reward cards.
Point-earning Cards
These cards typically offer at least 1 point for each dollar you spend. Some cards offer you the option of earning and redeeming your reward as either cash back or points.
Travel Cards Earn Travel Points
Sometimes present as airline “miles.” They tend to come with some amazing Travel-related perks and benefits. Some of these travel cards get co-branded with some airline or hotel chains, so if you are loyal to a particular brand, these cards would help you in maximizing your potential earnings.
How To Redeem Cash Back Rewards?
One of the best ways for you to maximize your cash-back rewards begins by getting a card with a reward structure that actually matches your general spending habits. Let’s say if you spend a significant amount of money on groceries every month, you would want to consider a card like the Blue Cash Preferred® Card from American Express for its 6 percent cash back perk at U.S. Supermarkets (up to $6,000 per year then 1 percent).
How to Redeem Credit Card Reward Points
This one is similar to redeeming cash-back rewards, you get to claim point-based rewards through your card issuer’s redemption portal. Your options actually could include anything from cash back, gift cards, and even travel benefits to online shopping redemptions.
Every issuer’s category is different, so you need to be sure to carry out your research and go with a card that offers redemptions that suit your spending habits and lifestyle.
How to Redeem Travel and Miles Rewards
When it comes to the travel reward, the redemption option you have depends on the type of travel card you have. You would typically redeem air miles for airline tickets and travel points for staying at hotels, or you might be offered the option to apply for some of your rewards toward certain travel perks.
If you happen to be loyal to a particular hotel chain or airline, you would probably get a ton of reward value from a hotel or from an airline card that partners with the brand of your choice.