(NewsNation) — If you’re a credit card holder, you hear about all the great things that can come with using it for purchases.
Credit card points are extra incentives that people may be able to earn through your credit card’s cash back, rewards or loyalty programs.
The points are usually earned by individuals who make transactions with their credit card in specific categories. Points are updated each billing cycle and may be viewed or redeemed on the credit issuer, hotel or airline’s online portal.
So speaking of having credit card points, what’s the most opportunistic way to use them?
Credit card points for travel goals
Many credit card issuers have an option for individuals to use their points for travel purposes.
There are three kinds of travel rewards: airline miles, hotel points and transferable points.
“Airline miles are specific to each airline,” says Nerdwallet.com. “They’re usually earned by flying with that airline or spending with the airline’s co-branded credit cards.”
Hotel points are good to use for hotel stays or for using the specific hotel chain’s co-branded credit card. Hotel points can be redeemed for gift cards at certain times, but they have the most value when used for booking rooms.
Transferable points for users are the most flexible option when looking for incentives while traveling.
“These points tend to offer multiple redemption options, such as gift cards, cash back or by transferring to specific hotel or airline partners,” Nerdwallet.com acknowledges. “And those transfers can sometimes make for the best redemption.”
Now, while several points and miles average roughly a cent a piece, it’s good for points holders to remember that sometimes points in one program can be half as valuable in another.
