How to Make Your Credit Card Rewards Work for You Again and Again

Euros by Petr Kratochvil
Last month, my rewards balance for my Amazon.com Credit Card reached 2,500 points, which meant I could redeem a $25 gift certificate. However, I decided to wait a month because I figured I could just redeem $50′s worth of gift certificates this month and save some hassle.

When I logged into my rewards account yesterday, I noticed that I had the option of redeeming $50 in gift certificates or $50 cash (in the form of a check). In the past I just always chose the gift certificate because I shop at Amazon.com so often, but I realized that I could get more out of my rewards program by redeeming my points for cash.

How I get more out of my rewards program by redeeming cash instead of gifts certificates

  1. I spendĀ  “cash” out of my bank account when I make a purchase at Amazon.com (I pay it back at the end of the month).
  2. I get 3 rewards points for every $1 spent at Amazon.com.
  3. When my rewards points reach 2,500 I can get a $25 gift certificate, BUT
    • If redeem a $25 Amazon gift certificate and use it on an order,
    • I don’t get any rewards points for that $25.
  4. So I wait until my balance reaches 5,000 points.
  5. I redeem it for $50 cash.
  6. I put that cash in my bank account.
  7. I pay for my next Amazon.com order with my Amazon.com credit card.
  8. I can earn another 150 points with that $50 cash that came from points I’d already earned using the card when I pay for my next Amazon.com order with it!

And, of course I also put any and all purchases and bill payments on my Amazon credit card to get 1 point for each $1.

So if your credit card rewards program gives you the option between gift certificates and cash, take the cash and put it back to work for you again … and again!

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One thought on “How to Make Your Credit Card Rewards Work for You Again and Again”

  1. Thanks for enlightening me on this! I definitely need to check out the Amazon Credit Card – a lot of my friends have been telling me great things about this card. I would also say depending on the rewards and where you are in life they can be very helpful. For example, I’m just starting out at a new job and need a ton of new business clothes, my Gap credit card has been really helpful in the form of gift certificates which I can use at Old Navy, Gap and Banana Republic.

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