When is it worth exchanging credit card points?
Making credit card purchases and guaranteeing benefits is one of the possibilities offered by most of the country’s flags. Loyalty programs allow consumers to convert their spending into beauty items, airline tickets, appliances and other items with accumulation. of points.
But, this does not always mean an advantage and it is important to know when credit card points are worth exchanging. Check out the strategies for not wasting money and making a good deal.
How it works?
As we said, point programs are a way for operators to get customers to buy and use their cards. With each purchase you make, you earn points. Generally, the cards offer 1 point for every dollar spent, ie if the dollar is $ 4.00 (as has sometimes happened) you will accumulate 1 point for every $ 4.00 you spend. If you make a purchase of $ 100 you will earn 25 points. Because $ 1.00 = $ 4.00 = 1 point.
Therefore, the more expensive the dollar, the more you will have to spend to accumulate more points. Some cards work with the score tied directly to spending in reais, ie each $ 1.00 gives 1 point. You earn points and then redeem them for products and services offered by the card loyalty program.
Not all cards have the benefit of the points program. Check with your bank or card provider. In some cases, you will need to contact the call center and request that your card be included in the loyalty program.
You can check the amount of points on the card, bank or loyalty program website. Generally, the card statement provides information such as total points accumulated and points to be earned. Before you know which card types are best for you and which ones best fit your profile.
Understand Points for Credit Card Rewards
Most credit cards allow the accumulation of points for every dollar spent, whether in Brazil or abroad. Thus, if you are in the country, at approximately R $ 4,00 spent, you earn one point – which makes the process a little longer until the scenario of advantages.
This is one way that card banners have found to reward consumers for using the card by encouraging them with a type of loyalty plan. But this is not always an advantage, as operators also aim for profits.
Not all products offered on the market are likely to earn points, which does not make up for the amount of money spent on the value of the product. An item may end up being a brand that is not well known, of poor quality, or it may have its stipulated value much higher than it would actually cost if it were bought by you at a store.
Strategies for Using Credit Card Points
One of the tips for finance specialists to have credit card exchange points as a benefit is to carefully evaluate the differences in the plans of each banner or bank, and to choose the one you think best. Often, the product that generates points is not part of your monthly purchase – which makes this process useless as the person will buy something they do not just need to exchange for points. A very disadvantageous path.
What is worth is having only one or two cards, and keeping a single benefit plan, with only one banner, concentrating all types of spending on it. This helps to track or average how many points are being accumulated for future exchange. Also get to know the point accelerators on the card.
In general, not always punctuating with anything is advantageous, such as paying water, electricity and telephone bills. After all, the financing service also generates interest and usually the credit cards are usually very high. The ideal is to spend according to what your income allows, and definitely get out of debt in an attempt to get benefits.