Credit card rewards points: that elusive currency everyone wants to maximize! One great hack to accumulate points faster is by using your credit card to purchase gift cards. In this article, we'll dive deep into the strategy of buying gift cards with your credit card to earn points, and how to make this tactic work for you. Get ready to supercharge your points game and unlock a world of lucrative rewards!
Buy Gift Cards With Credit Card For Points Table of Contents
Understanding Credit Card Points and Gift Cards
Understanding Credit Card Points and Gift Cards
Before we dive into the strategy, let's quickly brush up on the basics. Credit card points are rewards you earn for every dollar you spend on your credit card. The more you use your card, the more points you accumulate. These points can then be redeemed for various rewards like cashback, travel, merchandise, and more.
Gift cards, on the other hand, are prepaid cards that can be used at specific retailers or across a range of retailers, depending on the type. By buying gift cards with your credit card, you're essentially pre-paying for your future purchases or gifting someone the freedom to choose their own gift while racking up those valuable points.
Choosing the Right Card for Gift Card Purchases
To make the most of this strategy, you'll want to choose a credit card that offers the highest rewards rate for your gift card purchases. Some credit cards may offer bonuses for purchases in specific categories like groceries or dining, so it's essential to know which card will give you the best return on your gift card spending.
Consider these tips when choosing a credit card for buying gift cards:
- Look for a card with a high overall rewards rate, ideally 2% cashback or more.
- Check if the card offers bonus points for specific purchase categories that align with your gift card spending.
- Be aware of any annual fee – it should be justified by the rewards you'll earn.
Maximizing Your Points with Gift Card Purchases
Once you've found the perfect credit card, it's time to put your plan into action. Here are some tips to help you maximize the points you earn from buying gift cards:
1. Use your credit card to buy discounted gift cards: Look for promotions and sales on gift cards, where you can get more value for your money. You'll not only save on your purchases but also earn points for every dollar spent.
2. Purchase gift cards during bonus offers: Watch out for limited-time promotions that give you bonus points for buying gift cards. This can significantly boost your rewards points accumulation.
3. Use gift cards for planned expenses: Pre-pay your future spending and maintain a budget by purchasing gift cards for anticipated expenses, which will help you stay on track financially while earning points.
4. Stack rewards: Combine your credit card rewards with any retailer loyalty programs, cashback apps, or coupon codes to maximize your savings and rewards when you use your gift card for purchases.
Buy Gift Cards With Credit Card For Points Example:
Let's say you have a credit card that offers 3% cashback on grocery purchases, and you know you'll be spending $500 at your favorite supermarket in the next couple of months. By purchasing a $500 gift card for that supermarket with your credit card, you'll earn 3% cashback ($15) on the gift card purchase. As you spend the gift card, you can take advantage of any in-store rewards, coupons, and discounts, effectively stacking multiple rewards on one purchase.
And there you have it! With some smart planning and careful card selection, you can use the gift-card-hacking strategy to fast-track your rewards points accumulation, resulting in greater savings and value. Just remember to responsibly manage your credit card usage to avoid debt and maintain a good credit score. Share this article with your friends, and be sure to check out other guides on Flik Eco to level up your personal finance game!
