Do you find yourself intrigued by the idea of earning credit card rewards and points when purchasing gift cards? As a savvy millennial, you're most likely looking for ways to earn more benefits while shopping. In this article, we'll break down how you can maximize your credit card rewards by buying gift cards and cover essential tips that can help you boost your points game. So, let's dive into how you can turn gift cards into rewarding experiences!
Buying Gift Cards With Credit Card For Points Table of Contents
Understanding Credit Card Rewards
Before we explore how to optimize your points by purchasing gift cards, it's crucial to understand the basics of credit card rewards. Most credit cards offer rewards programs that can earn you points, cash back, or miles for every dollar spent. These rewards can then be redeemed for various perks, such as travel, merchandise, or statement credits.
Types of Credit Card Rewards
There are three main types of rewards programs: points, cash back, and airline miles. Each program is geared towards different spending habits and goals. Here's a quick overview:
- Points: Credit card points can be redeemed for a variety of rewards like gift cards, merchandise, or travel.
- Cash back: It allows cardholders to earn a percentage of their purchases as a statement credit or check.
- Airline miles: These are the most common travel rewards, where you earn miles for every dollar spent that you can redeem for flights or upgrades.
Buying Gift Cards with Credit Cards for Points
Now that you have a basic understanding of credit card rewards programs, let's dig into the benefits of purchasing gift cards to maximize your points.
Boost Your Earning Potential
When you buy gift cards using your credit card, you're effectively "double-dipping" on rewards. That's because you'll earn rewards on your credit card purchase, and then again when you use the gift card for purchases. It's a great way to maximize your potential points earnings on every transaction.
Taking Advantage of Bonus Categories
Some credit cards offer bonus rewards in specific spending categories, such as groceries, dining, or travel. If your card provides additional points or cash back when shopping at certain retailers, you can purchase gift cards for those retailers to increase your rewards earnings.
Maximizing Your Credit Card Sign-Up Bonuses
Many credit cards offer generous sign-up bonuses when you reach a certain spending threshold within a specific time frame. By purchasing gift cards you'd use anyway, you can quickly reach these thresholds and unlock your sign-up bonuses sooner.
Stack Rewards with Online Shopping Portals
Some credit card companies have partnered with online shopping portals, allowing their customers to rack up even more rewards by clicking through these portals before making a purchase. By purchasing gift cards through these shopping portals, you can further increase your points earnings.
Buying Gift Cards With Credit Card For Points Example:
Let's assume you have a credit card that offers 5% cash back on grocery store purchases. You know you'll spend $500 at a popular online retailer in the coming months. To maximize your rewards, you can go to your local grocery store and purchase a $500 gift card for that online retailer using your credit card.
As a result, you'll earn 5% cash back ($25) on the gift card purchase. Then, when you use the gift card on the online retailer, you'll ultimately be saving an extra $25 on your future purchases thanks to the cashback earned on the gift card itself.
Now you know how to earn more credit card rewards by purchasing gift cards and making the most out of your card's bonus categories, sign-up bonuses, and online shopping portals. It's time to put these tips to work and watch your points and rewards grow! Share this article with your friends and spread the knowledge to help everyone reap the benefits of credit card points. And make sure to explore the other insightful guides on Flik Eco to stay on top of your personal finance game!
