Points Tips: Do credit card reward shopping malls offer good value redemptions for your points?

In my opinion, the short answer is no. Generally, the rule of thumb is you need to redeem your points for travel to get the most value out of them. Travel will usually also require more points than any other redemption so people often shy away since they think they need to spend a lot of money to build up a good amount of points. While you need to spend money to build up points, you can earn a lot of points through sign up bonuses, bonus spending categories, etc.

Different shopping portals available

A lot of credit card companies allow you to either buy items through their own store or through Amazon using points. Most of these redemptions through all credit card portals, will offer anywhere from .5 cents to 1 cent per point. Amazon redemptions through Chase offers 1 cent per point, while American Express offers .7 cents per point. The American Express shopping portal generally gives you around .5 cents per point.

Redeeming points for things other than travel

If you don’t travel that often and wish to redeem points for things other than travel, I recommend you use cash back credit cards. There are so many excellent cash back credit cards on the market and this ensures you always get 1 to 2 cents per dollar spent. Some of these cards include the Discover it, Citi Double Cash, and American Express Blue Cash Preferred cards.

Agree? Disagree? Comment below!

-Nick a.k.a. Points Tutor