Credit Card Reward Programs Are Not Created Equal

If your credit card offers a reward program, you should take advantage of it (provided that the amount in gift cards you receive exceeds the rewards program fee, if any).  I am a member of two reward programs:  Chase Travel Plus and American Express Membership Rewards.  I actually don't redeem my points from my Chase credit card for travel certificates or transfer them as mileage points to my Continental OnePass account.  It's become too dicey when redeeming points for plane tickets or upgrades these days.  Instead, I redeem my points from my Chase credit card for Bloomingdale's gift cards.  With my American Express credit card, I redeem my points for Saks gift cards.   But the point-to-dollar ratio is NOT the same for these reward programs:

• Chase:  $250 Bloomingdale's GC for 20,000 points
• American Express:  $200 Saks GC for 25,000 points

As a result, I tend to use my Chase credit card more because the point's dollar value is higher for a department store gift card.  However, it's important to note that Chase only allows you to redeem points for a Bloomingdale's gift card in $250 increments.  American Express allows you to redeem points in $50 increments.  So carefully review your credit cards' reward program and then maximize your redemption potential!!

Tip 1:  If you're purchasing on-line and not shopping via a cashback website, shop through your credit card's reward website.  You can usually earn bonus points this way...and that means being able to redeem points for a gift card faster!!

Tip 2:  All department stores offer their own credit cards.  They suck you in by offering a 10% - 15% discount for same-day purchases when you apply for the store credit card.  I'm pretty sure I have credit cards from all the major department stores by now.  But I never use them.  They all provide a reward program as well but then it means you're married to that one particular department store.  Since I like to shop around, it's not worth it for me (and probably not worth it for you).  However, if you do use store credit cards, remember that their interest rates are significantly higher than regular credit cards.  These are pay-off-balance credit cards, not let's-keep-a-balance credit cards.