What are credit card points?

Credit card points are a type of reward that credit card companies offer to encourage customers to use their credit cards for purchases. The basic idea is that for every dollar you spend using the credit card, you earn a certain number of points. The number of points you earn per dollar spent typically varies depending on the credit card used and the type of purchase.

Once you've accumulated enough points, you can redeem them for various rewards. Common redemption options include travel (either via a credit card travel portal or by transferring points), gift cards, merchandise, cash back, experiences, or charitable donations.

The value of credit card points can vary widely depending on the credit card and how you redeem the points. For example, points might be worth more when redeemed for travel compared to when redeemed for merchandise or gift cards. It’s important to spend some time understanding how points work and how to get the most value out of them.