Advertiser Disclosure
Many of the offers that appear on this site are from companies from which The Motley Fool receives compensation. This compensation may impact how and where products appear on this site (including, for example, the order in which they appear) and may influence which products we write about, but our product ratings are not influenced by compensation. We do not include all companies or offers available in the marketplace.
Brooklyn leads the content team behind product reviews and ratings at Motley Fool Money, ensuring readers get well-researched, expert-backed insights to make smarter financial decisions. With nearly seven years working full-time in financial content -- four of them at The Motley Fool -- she has developed a deep passion for personal finance, from investing strategies to everyday money management. Her financial goals include buying a house and planning as many trips as her budget allows. In her free time, you’ll likely find her listening to a pop culture podcast or telling anyone who will listen to get a high-yield savings account.
Many or all of the products here are from our partners that compensate us. It’s how we make money. But our editorial integrity ensures that our product ratings are not influenced by compensation.
If you've ever heard a friend brag about booking a flight on points (it's me, I'm the friend), you may have wondered how the heck you can actually get stuff with points. I've had a Chase Sapphire Preferred® Card (see rates and fees) for years, and I won't shut up about the trips I've taken for pennies on the dollar -- because once you figure out how credit card points work, it kind of feels like a cheat code.
Credit card points can unlock a ton of value: free travel, cash back, even luxury upgrades. But figuring out how they actually work -- how to earn them, how much they're worth, and how to redeem them smartly -- isn't always intuitive. I've been using points for years, and I still learn new tricks all the time.
Whether you're just getting started or trying to make better use of the points you already have, I'll walk you through the basics of how credit card points work and how to get the most out of them.
First, what are credit card points?
Credit card points are a type of rewards currency you earn by using certain rewards credit cards. Unlike cash back cards that give you a set percentage back, points offer more flexibility -- and sometimes more value -- if you know how to use them.
Most points can be redeemed for:
Travel (flights, hotels, rental cars)
Cash back or statement credits
Gift cards
Online shopping or dining
Experiences or exclusive perks
Think of it like a loyalty program for your wallet. The more you use your card (responsibly), the more points you rack up, and the more value you can squeeze from everyday spending.
Credit card comparison
We recommend comparing options to ensure the card you're selecting is the best fit for you. To make your search easier, here's a short list of standout credit cards.
5.00/5
Our ratings are based on a 5 star scale.
5 stars equals Best.
4 stars equals Excellent.
3 stars equals Good.
2 stars equals Fair.
1 star equals Poor.
We want your money to work harder for you. Which is why our ratings are biased toward offers that deliver versatility while cutting out-of-pocket costs.
= Best
= Excellent
= Good
= Fair
= Poor
Best for cash back on rotating categories
Discover will match all the cash back you’ve earned at the end of your first year.
INTRO OFFER: Unlimited Cashback Match for all new cardmembers–only from Discover. Discover will automatically match all the cash back you’ve earned at the end of your first year! There’s no minimum spending or maximum rewards. You could turn $150 cash back into $300.
1% - 5% Cashback
Earn 5% cash back on everyday purchases at different places you shop each quarter like grocery stores, restaurants, gas stations, and more, up to the quarterly maximum when you activate. Plus, earn unlimited 1% cash back on all other purchases.
4.00/5
Our ratings are based on a 5 star scale.
5 stars equals Best.
4 stars equals Excellent.
3 stars equals Good.
2 stars equals Fair.
1 star equals Poor.
We want your money to work harder for you. Which is why our ratings are biased toward offers that deliver versatility while cutting out-of-pocket costs.
= Best
= Excellent
= Good
= Fair
= Poor
Best for unlimited rewards on purchases
25,000 points
25,000 online bonus points after you make at least $1,000 in purchases in the first 90 days of account opening - that can be a $250 statement credit toward travel purchases
1.5-3 points per dollar
Earn unlimited 1.5 points per $1 spent on all purchases, with no annual fee and no foreign transaction fees, and your points don't expire as long as your account remains open. Earn 3 points per $1 spent on travel purchases booked through the Bank of America Travel Center.
Intro:
0% Intro APR for 15 billing cycles for purchases. 0% Intro APR for 15 billing cycles for any balance transfers made in the first 60 days. After the intro APR offer ends, 18.24% - 28.24% Variable APR on purchases and balance transfers will apply. A 3% fee for 60 days from account opening, then 4% fee applies to all balance transfers. Balance transfers
may not be used to pay any account provided by Bank of America.
Purchases: 0% Intro APR for 15 billing cycles for purchases
Balance Transfers: 0% Intro APR for 15 billing cycles for any balance transfers made in the first 60 days
4.80/5
Our ratings are based on a 5 star scale.
5 stars equals Best.
4 stars equals Excellent.
3 stars equals Good.
2 stars equals Fair.
1 star equals Poor.
We want your money to work harder for you. Which is why our ratings are biased toward offers that deliver versatility while cutting out-of-pocket costs.
= Best
= Excellent
= Good
= Fair
= Poor
$200 cash back
$200 online cash rewards bonus after you make at least $1,000 in purchases in the first 90 days of account opening.
1% - 6% cash back
Earn 6% cash back for the first year in the category of your choice, 2% cash back at grocery stores and wholesale clubs, and unlimited 1% cash back on all other purchases. Earn 6% and 2% cash back on the first $2,500 in combined purchases each quarter in the choice category, and at grocery stores and wholesale clubs, then earn unlimited 1% thereafter. After the first year from account opening, you’ll earn 3% cash back on purchases in your choice category and 2% cash back at grocery stores and wholesale clubs up to the quarterly maximum.
Intro:
0% Intro APR for 15 billing cycles for purchases, and for any balance transfers made in the first 60 days. After the Intro APR offer ends, a Variable APR that’s currently 18.24% - 28.24% will apply. A 3% Intro balance transfer fee will apply for the first 60 days your account is open. After the Intro balance transfer fee offer ends, the fee for future balance transfers is 4%. Balance transfers may not be used to pay any account provided by Bank of America.
Purchases: 0% Intro APR for 15 billing cycles for purchases
Balance Transfers: 0% Intro APR for 15 billing cycles for any balance transfers made in the first 60 days
You'll usually earn points based on how much you spend -- and how you spend.
For example, a card might offer:
3 points per dollar on dining
2 points per dollar on travel
1 point per dollar on everything else
So, if you spend $100 at a restaurant, you'd earn 300 points. Spend $500 on groceries with a card that offers 1 point per dollar, that's 500 points.
Many cards also offer welcome bonuses, which are usually a chunk of points if you meet a minimum spending threshold within the first few months. This is often the fastest way to build a big stash of points early on.
How much are points worth?
It depends. Some cards give you a flat value (like $0.01 per point), while others offer more value if you redeem through specific travel portals or transfer your points to a partner program like an airline or hotel chain.
Here's a general range:
Cash back or statement credit: usually around $0.01 per point
Travel booked through your card's portal: often $0.01 to $0.015 per point
Transfer to travel partners: potentially $0.02 per point or more, depending on the deal
So, while 10,000 points might equal $100 in cash back, they could get you $125-$200 in travel depending on how you book.
I often transfer my Chase Ultimate Rewards points to airline partners like United or Southwest and book flights that would've cost $300+ for a fraction of that in points. It's one of the best ways to squeeze extra value out of the system.
Every credit card issuer has a different portal or platform, but most redemptions follow a similar process:
Log into your account and find the rewards or points section.
Choose your redemption category: travel, cash back, gift cards, etc.
Decide how many points you want to use -- either to fully cover a purchase or to offset part of it.
If your card lets you transfer points to travel partners (like airline frequent flyer programs or hotel loyalty programs), that's usually done through the issuer's website as well.
Pro tip: Using points to shop at retailers or cover purchases at checkout (like on Amazon) can be convenient, but you'll usually get less value per point. Booking travel or transferring to partners usually stretches your points much further.
For many major issuers, your points won't expire as long as your account is open and in good standing. But if you miss payments or close your card, you could lose them.
Always check the fine print. If you're thinking about closing a card, redeem or transfer your points first to avoid losing them.
Tips for making the most of your points
Here's what I've learned after years of playing the points game (and making plenty of rookie mistakes along the way):
Don't hoard your points
Redemption options change. Programs get devalued. If you've got a good use for your points now, take it. (Also: You deserve a vacation.)
Use the right card in the right place
Match your spending to your card's bonus categories. Use your dining rewards card at restaurants. Use your travel rewards card when booking flights. It takes zero extra effort and can double or triple the points you earn.
Know your transfer partners
Transferring points to airlines or hotels can unlock incredible deals -- like international flights, business class upgrades, or luxury hotels for far fewer points than you'd expect. It takes a little extra research, but the payoff is often worth it.
Don't waste points on low-value redemptions
Gift cards and checkout options may look appealing, but they usually give you the lowest return per point. Stick to travel or cash back unless you really need the flexibility.
Always pay your balance in full
Points are great, but they're not worth it if you're paying interest. If you carry a balance month to month, you'll cancel out any rewards you earn.
Bottom line
Credit card points can be an incredible tool -- not just for the occasional flight or hotel, but for building more flexibility into your finances. And the best part? You're earning them on money you're already spending.
You don't need a dozen cards or a spreadsheet full of transfer charts to make it worth your while. Just pick a solid rewards card, use it wisely, and start turning your everyday spending into something more meaningful -- whether that's a trip, a splurge, or just a little extra room in your budget.
Credit card points are a type of rewards currency earned when you spend with certain credit cards. You can redeem them for travel, cash back, and more.
The best value often comes from transferring points to airline or hotel partners or booking travel through your card's portal. Avoid low-value redemptions like gift cards or shopping credits when possible.
It depends on the issuer. Many points won't expire as long as your account stays open and in good standing -- but you could lose them if you cancel your card or miss payments.
Yes! Even if you don't travel, you can still redeem points for cash back or statement credits. That said, travel redemptions often give you more bang for your points.
Share This Page
We're firm believers in the Golden Rule, which is why editorial opinions are ours alone and have not been previously reviewed, approved, or endorsed by included advertisers. Motley Fool Money does not cover all offers on the market. Motley Fool Money is 100% owned and operated by The Motley Fool. Our knowledgeable team of personal finance editors and analysts are employed by The Motley Fool and held to the same set of publishing standards and editorial integrity while maintaining professional separation from the analysts and editors on other Motley Fool brands.
Terms may apply to offers listed on this page.
Citigroup is an advertising partner of Motley Fool Money. JPMorgan Chase is an advertising partner of Motley Fool Money. Wells Fargo is an advertising partner of Motley Fool Money. American Express is an advertising partner of Motley Fool Money. Brooklyn Welch has positions in Amazon and Visa. The Motley Fool has positions in and recommends Amazon, Intuit, JPMorgan Chase, Target, and Visa. The Motley Fool recommends Capital One Financial. The Motley Fool has a disclosure policy.
The Motley Fool owns shares of and recommends Visa.
Motley Fool Money is a Motley Fool service that rates and reviews essential products for your everyday money matters.
