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4 Ways To Use Your Credit Rewards

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4 Ways To Use Your Credit Rewards

When you get your first credit card, it might seem like just a tool to help you make everyday purchases, but it's much more than that. While credit cards can be great, if you have noticed that your credit score is lower than it should be, or you're getting unfamiliar bills in the mail, you might want to learn how to freeze your credit.

When used responsibly, a credit card can help you build credit, earn rewards, and protect your purchases from theft or damage.

Reward credits are an easy and convenient way to earn some significant perks, like free airline tickets, merchandise, gift cards or even cash. With so many ways to redeem your points and rewards, how do you decide what is right for you? Here are four ways to use your credit rewards.

Upgrade Your Hotel

Regardless of whether you are going on a staycation or traveling across the country, you can use your credit card to get you either a free night or even an upgraded room. For example, if you have The World of Hyatt Credit Card from JPMorgan Chase (NYSE: JPM), you get one free night a year in a Category 1-4 standard room. By utilizing this reward, it can elevate your stay from standard to something truly special.

Pay With Points Or Rewards

If you're trying to find a discount or save money, then your rewards card might be able to help. Many credit cards will allow you to shop at retailers, like Amazon.com (NYSE: AMZN), and pay for all or part of the purchase with your reward points. This feature can help you save money, especially at places where you frequently shop.

Purchase A Gift Card

Gift cards are one of the best ways to redeem rewards because they're flexible to use, and you get a high point-to-dollar value. You might even find that your card offers extra bonuses when you purchase a gift card. Check to see if you can redeem $40 worth of points and get a $50 gift card.

You might even find that some credit cards will offer gift cards at lower price points, including $25. Therefore, you won’t have to stockpile rewards and wait for months before you can cash in for the rewards.

Redeem For Statement Credit Or Cash

For those who are more practical, you might want to use your reward points to get cash or statement credits. While this is less fun than using it for travel perks or gift cards, it's a smart way to cash in your rewards and improve your bottom line. You could even use your points to pay off debt or transfer the money into an interest-earning account, causing your rewards to grow over time.

As with any reward program, you should always read the fine print to make sure you are maximizing the rewards. Look for spending caps, redemption restrictions, or expiration dates. With some planning, you can find many different ways to cash in your credit card rewards.

MoneyLion has entered into a compensation arrangement with Benzinga under which MoneyLion pays a fee for marketing and advertising services. MoneyLion does not have editorial control over the content of this material. MoneyLion does not adopt, endorse, or guarantee the accuracy of content posted by Benzinga, and such content does not represent the views of MoneyLion.

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