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There are hundreds of credit card that offer rewards, enticing consumers to sign up for them. You may have racked up tons of credit card rewards and you may be wondering what to do with them.

In fact, there are advantages and disadvantages to redeeming your credit card reward points for different things. This article will go over some ideas on how to use your credit card rewards.

Use Rewards on Your Interests

When you sign up for a credit card, one thing to think about is what the rewards are. You can usually find a rewards program that aligns with your interests.

For instance, if you love to travel, then an airline rewards card would be a great option for you. However, if you spend a lot of time driving, then a credit card that rewards purchases on gas might be more worthwhile.

Find out what you spend the most money on each month and then look for a card that will reward you for those purchases.

Cash Back

Cash back reward cards are the most popular type of credit card. These rewards are typically flexible – you can redeem for cash back, gift cards, statement credits, or travel. In some cases, you can use your cash back rewards to make payments on your credit card balance. Many credit card issuers also let you redeem your cash back no matter the amount you have. You can redeem for 10 cents or $100. Be sure to check your issuer terms and conditions.

Travel

Another very popular reward way to earn rewards is airline miles. This is a great option if you’re a frequent flier. If you are loyal to a particular airline, you can likely find a co-branded credit card that offers you rewards with that airline. If you don’t use any particular airline, there are more flexible travel credit cards that allow you to redeem miles with any airline. Whether you use a co-branded credit card or not, these cards can help you save big on trips.

Vacations

Hotel rewards are another popular option, especially if you travel a lot. Hotel rewards cards are often linked with airline rewards cards. There are also co-branded hotel credit cards if you’re loyal to a chain of hotels. Again, these help you earn points with that chain. Each dollar you spend earns points which be redeemed for free nights at a hotel. In some cases, you can use them for room upgrades or dining and spa experiences (again, check the issuer terms and conditions).

If you don’t have travel plans, then a hotel rewards credit card would be a poor choice.

Gas

Gas reward cards can be extremely useful if you drive a lot. These cards are usually partnered with a gas company such as Shell or Exxon-Mobil. You can use the card at any location, but the points are only redeemable at the associated gas station and convenience store. These points usually earn you a certain amount off per gallon and can save you money at the pump.

Final Thoughts

All in all, there are plenty of ways that you can use your credit card rewards. Most people opt to use a cash back card and receive a certain percentage back on spending. There are other options that you can opt for if you’re a frequent traveler or if you drive a lot.

In order to qualify for the best rewards cards, you’ll likely need good or excellent credit. By signing up for Credit.com today, you can check two of your credit scores for free. Your scores are updated every 14 days so if you’re not where you need to be to qualify for that credit card you want, you’ll be able to check on your progress.

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