Credit card rewards points are the amazing perk that keeps on giving. But, have you ever considered using your credit card to buy gift cards for maximizing those precious points? In this article, we're going to explore the ins and outs of buying gift cards for credit card points, and how it can bring you one step closer to that dream vacation or cashback reward. So grab a cup of coffee, buckle up, and get ready for an exciting financial adventure with Flik Eco.
Buying Gift Cards For Credit Card Points Table of Contents
Understanding Credit Card Rewards
Before we dive into the world of gift cards, let's quickly brush up on credit card rewards. Credit card companies offer rewards points as an incentive for you to use their card. These points can be redeemed for cash back, travel rewards, gift cards, or merchandise. The more you spend, the more points you accumulate.
How Do Credit Card Rewards Work with Gift Cards
Some credit card companies allow you to earn rewards points when you purchase gift cards. This means that if you buy a gift card with your credit card, you will earn points on that purchase—just like you would with any other purchase. But, don't forget to check if your credit card company allows this because not all companies do.
Maximizing Credit Card Points Through Gift Card Purchases
Buying gift cards with your credit card can help you accumulate rewards points quickly, especially when:
- There are multipliers or bonus categories for specific types of spending (e.g., groceries, dining)
- You need to meet the minimum spending requirement for a signup bonus
- Purchase gift cards for your everyday spending (e.g., gas, groceries, dining)
- Stock up on gift cards during sales or promotions
Things to Watch Out For
Before you start swiping your credit card for gift cards, there are a few things to be cautious about:
1. Fees and Restrictions
Some gift cards come with purchasing fees, activation fees, or limitations on where they can be used. Make sure to read the fine print before buying to avoid any unpleasant surprises.
2. Credit Card Surcharges
Certain retailers might charge a fee for using a credit card to purchase gift cards. Check the retailer's payment policy to ensure that you won't be hit with any unexpected charges.
3. Carrying a Balance
Buying gift cards purely for rewards points can be tempting, but don't let it lead to debt. If you're unable to pay off your balance in full each month, the interest charges will quickly eat into any rewards you've earned.
Buying Gift Cards For Credit Card Points Example:
Suppose your credit card offers 3x points on dining expenses. You frequently dine at your favorite restaurant, and they offer a promotion where you can buy a $100 gift card for just $80. You decide to purchase the gift card with your credit card, earning 240 points instead of the usual 160. Buying this discounted gift card not only saved you $20 but also earned you 80 additional points.
Now that you've learned about buying gift cards for credit card points, it's time to put your newfound knowledge into practice. When used wisely, purchasing gift cards can help you accumulate credit card rewards points faster, bringing you closer to achieving your financial goals. Make sure to share this article with your friends and family so they too can make the most of their credit card rewards. And don't forget to check out other amazing guides on Flik Eco to elevate your financial game!
