What Are Credit Card Points? 

If you’ve ever wondered what those credit card points in your account do for you, you’re not alone. Credit card points can be your ticket to free travel, statement credits and more, but how do they work? And, more importantly, how can you make the most of them? Whether you aim to score that next vacation or save a few bucks on your bills, credit card points offer flexible rewards that can add up fast when used strategically.

---

MoneyLion can help you explore various credit card options tailored to different needs and preferences. To get started, select a reason for why you’re looking for a new credit card below:

 

---

How do credit card points work?

Credit card points are a reward currency you can earn by purchasing certain credit cards. Each time you swipe, tap or enter your card info, you’re racking up points based on your spending percentage. The amount of points you earn per dollar depends on the credit card and its structure – some cards offer one point per dollar on general purchases, while others offer bonus points for spending in specific categories like dining or travel.

Once you’ve accumulated enough points, they can be redeemed for various rewards, including travel, gift cards, statement credits and cash back. The value of each point depends on how and where you redeem them, so it’s crucial to know how to maximize the worth of your rewards.

How to earn credit card points

There are several strategies to earn credit card points quickly and many revolve around making your everyday spending work harder for you. Here are some of the top ways to earn points:

Use your card for everyday purchases

One of the easiest ways to rack up credit card points is by using your card for everyday purchases like groceries, gas and utilities. If your card earns one point per dollar, a $500 grocery bill could net you 500 points. Some cards even offer higher rewards rates in certain categories like dining or groceries, making your everyday spending even more rewarding.

Sign up for a card with a welcome bonus

Many credit cards offer a generous welcome bonus when you sign up and meet a minimum spending requirement within the first few months. For example, a card might offer 50,000 points if you spend $3,000 in the first three months. That’s a huge number of points that can get you closer to your next reward.

Pay bills with your credit card

You might not think of bills as an opportunity to earn rewards, but paying recurring bills – like your phone, cable or streaming services – with your credit card can help you earn points on regular expenses. Some service providers allow you to use your credit card for rent or utilities, although you should always check for extra fees before doing so.

Dine out and use restaurant rewards

Dining out can be another great way to earn points, especially if your card offers bonus points in the dining category. Some cards even partner with restaurants or delivery services to offer extra rewards. For example, with the right card, you might earn three points per dollar spent on dining, making date night or takeout more rewarding.

Book travel through your card’s portal

If your credit card offers its travel booking portal, you can often earn bonus points for flights, hotels and rental cars. Some travel-focused credit cards offer up to 5 points per dollar spent when booking through their travel portals, allowing you to earn a substantial number of points with just a few trips.

Shop through your card’s online marketplace

Many credit card companies have online marketplaces where you can shop from partnered retailers and earn bonus points. These portals often offer higher points per dollar than you would get shopping directly on a retailer’s site, sometimes up to 10 points per dollar.

Use rotating category bonuses

Some credit cards feature rotating categories that offer extra points in specific areas of spending. These categories might include groceries, gas stations or home improvement stores. The categories usually change quarterly and you need to activate them to start earning.

Refer friends to sign up

If you love your credit card, why not recommend it to your friends? Some cards offer referral bonuses when a friend signs up through your unique link and gets approved. These bonuses can range from a few thousand points to 10,000 points or more, sometimes as statement credits or direct points.

Use shopping portal bonuses

Many credit cards have shopping portals that partner with retailers, allowing you to earn additional points when you shop through their platform. The rewards rates can range from one to 10 points per dollar, depending on the retailer and your card’s offers.

Take advantage of limited-time promotions

Occasionally, credit card companies run limited-time promotions where you can earn bonus points for spending in specific categories or shopping at certain retailers. These promotions are a great way to boost your points balance quickly, so keep an eye on your card’s offers.

How to redeem and use credit card points

Once you’ve earned enough points, it’s time to redeem them. Different cards offer various ways to cash in your points for rewards, so be sure to choose the option that offers the most value.

Statement credits

One of the most straightforward ways to use your points is by applying them as a statement credit, which reduces your balance. For example, if you have 10,000 points and each point is worth one cent, you can use those points to wipe $100 off your credit card bill, though point values may vary depending on how you redeem them.

Travel bookings

Many credit card points can be redeemed for travel through the card issuer’s portal or by transferring points to partner airlines or hotels. This can often provide some of the highest value per point, especially if you find a great deal on flights or accommodations.

Gift cards

Some credit card issuers allow you to redeem points for gift cards to popular retailers, restaurants or online stores. While the value of points for gift cards may vary, it can be a convenient option for quick rewards.

Shopping portals

Some credit card issuers let you redeem points directly through online shopping portals. You can use your points at checkout to cover part or all of the cost of items from partnered retailers.

Online retailers

Certain credit cards allow you to link your account with online retailers like Amazon, letting you redeem points directly at checkout. This is a fast and convenient way to use your points for everyday purchases.

Charity donations

If you want to give back, many credit card issuers offer the option to donate your points to charity. While this won’t provide direct monetary value, it’s a meaningful way to use your rewards.

How much are credit card points worth?

The value of credit card points can vary depending on how and where you redeem them. For example, 10,000 points might be worth $100 as a statement credit (1 cent per point) but could be worth more if redeemed for travel, where points might have a value of 1.5 to two cents each. Different issuers and cards also assign different point values, so it’s important to compare redemption options and choose the one that maximizes your rewards.

Get the most out of your credit card points

Credit card points can be a valuable tool for getting more out of your everyday spending, but it’s essential to understand how to earn and redeem them strategically. By using your card for purchases in high-reward categories, taking advantage of bonus offers and choosing the best redemption options, you can maximize the value of your points and enjoy substantial rewards.

FAQ