What is best to do with accumulated credit card reward points? The fact that AmEx keeps nudging me to use them to pay my bill makes me think that is the worst thing I could do with them.
That’s probably a better question for Holly at Club Thrifty.
I’m seriously lame with my CC points and don’t try to maximize them in any way. I just take the cash back option, and not even the “correct” cash back option since I’d get more cash back if I switched to a card for “high spenders” rather than the citicard I have that limits to $300 cash back/year. I like our citicards because they don’t have the ridiculous points system, they just give 1% cash back. It’s easy with the lowest mental load. Because really, my time is worth more doing real work than it is chasing the optimal credit rewards (which always eventually disapparate and then you have to chase the newest optimal system).
I have heard that the best use of points is usually for travel, but that’s going to depend a lot on your card’s specific situation. You’ll need to sit down and see how much of a return they give you for points for each of the different options they provide you. Cash back should be your baseline and then you should see if there’s an amount of travel that you prefer to same number of points for cash back, or whatever your other options are (do you get a bonus for applying the cash back to your bill rather than to them cutting a check?).
So, that’s really a non answer from us. However, we know that some our readers must know better than we do.
What should CPP do with his AmEx CC rewards?