How to redeem your credit card points? 3 ways you need to know | Mint

The first best on using a credit card is earning reward points for tedious transactions. However, points alone wouldn’t bring value until you effectively learn how you can use them. This guide will cover everything about redeeming credit card points.

Understanding credit card rewards points

Credit card issuers provide reward points as a way to encourage card usage. The credit card reward points essentially act like virtual money that you earn based on your spending. The type of card you have as well as the spending pattern will determine whether you will be receiving a few points or a kitty filled with points that can be redeemed for other rewards.

In conclusion, select redemptions that offer the most value for the greatest advantage. Not all rewards are created equal, and some reward choices give far more return than others. If you keep a close watch on your point balance and redemption dates, you avoid losing out on worthwhile perks.

(Note: Using a credit card carries its own set of risks.)