Getting the most out of your credit card purchases involves maximizing your reward points as much as possible! Making a purchase with a credit card may grant you the opportunity to earn cashback, points, miles, or other kinds of incentives.
Most programs don’t allow you to transfer your credit card rewards over to another person unless they also have an account with the provider. In some cases, the other individual must also be an immediate family member, such as a spouse, parent, or sibling. You won’t be able to sell your credit card rewards because doing so violates the terms of service with the provider.
How Can I Sell My Credit Card Rewards for Cash?
As mentioned above, you typically won’t be able to sell your rewards for cash. But, some credit cards offer incentives like cashback for your purchases! Cashback with credit cards works by allowing you to receive a percentage of your purchase back as cash. Cashback is not “free money”, but it can be applied to your statement balance, received as a check, or sent to your bank account via direct deposit.
Navigating Different Types of Cash Back Rewards
Essentially, this type of reward acts like a small refund for shopping at a particular store or type of store, such as a restaurant or gas station. Cashback rewards tend to range between 1% and 5% of the total transaction price. It’s important to shop around for different credit card options to get the most “bang for your buck!”
Some credit card providers offer flat-rate cashback rewards, which give you a flat or fixed percentage of your purchase.
Other providers offer rates that are tiered depending on the type of purchase you made or the transaction level. For example, some providers will let you earn 3% on purchases at Target, but only 1% on groceries.
You may be able to choose the stores where you can get cashback per month, which can be an amazing perk for a lot of consumers! Flat-rate rewards can be a lot easier for consumers who don’t have the time to track their spending, however. Make sure to choose a provider that offers the right type of cashback that fits your lifestyle and needs.
How to Give Credit Card Rewards to Someone Else
If you are trying to give your rewards or miles to another person, then they will usually have to be an immediate family member who also has the same credit card provider as you. The process can be different from provider to provider, so make sure that you speak to a representative ahead of time. There is often a fee to transfer your points or miles to another person, so keep that in mind before you decide to get rid of them!
You may be able to redeem the rewards for airline tickets, gift cards, or even a hotel room! All of those options can make the perfect gift if you aren’t planning on using those rewards.
Other Ways to Use Your Credit Card Rewards
If you aren’t planning on using your credit card rewards anytime soon, you can choose to redeem them for bank deposits or statement credits and give yourself a little bit of a refund for your purchases. You can also use your rewards to get electronics from some providers!
If you have Discover or American Express, you can also donate your rewards to different charities, like the Red Cross Disaster Relief, Unicef, and Make-A-Wish.
The bottom line is that you can’t sell your credit card rewards, but you shouldn’t let your rewards go to waste. You have a lot of options to use them!
Do Rewards Ever Expire?
As long as your account stays open and in good standing, your credit card reward points generally don’t expire. In some cases, however, your airline miles or hotel points that were transferred to a loyalty program account will expire if they are not redeemed within a specific timeframe set in the terms of service. Remember to check your credit card or loyalty program every so often to make sure that you are still on track!
