Points

dshobbies · #1 (**permalink**) 05-09-2009, 11:28 PM

Hi all,

I just spoke to my nephew who was clueless about charge card points.

Points can add up fast if you use your card for just about everything. I don't believe in debt and pay off all my cards at the end of every month but the points can be used for many things.

My personal favorite is American Express because their points don't expire after 5 years, there is no yearly limit and they have more 'sisters' than any other card but they also charge about $50 for their points program. Other charge card card companies have more limitations but their rewards programs are generally free. It's worth a little research to discover the best card for you. Some cards offer cash rewards but they never add up to much.

Points can be used for dinners, movies, Xmas presents... but also for airline tickets and/or upgrades. For those heading for Germany or points elsewhere, this can help mitigate your costs.

In my family, any purchase over $10 is put on a card, e.g. phone and cell bills, doctor bills, pharmacy purchases, all gas and groceries, department stores, ebay purchases... pretty much everything, even the post office. If you have a business or need to make professional purchases, use your card but be sure to pay it off every month. The interest will negate any benefit you may get.

I also have a rewards (Sony) Visa (just got 2 new computers) and a more general MC with plenty of sisters for places that don't accept AmEx.

Just FYI because too often, this easy benefit is overlooked.

One more thing, charging various purchases has another added benefit of certain legal protections. By law, they must investigate possible fraudulent situations, like never receiving something purchases, or an airline declaring bankruptcy, etc. They also might offer additional warranties or other protections. Definitely worth looking into.

Maria · #2 (**permalink**) 05-10-2009, 03:32 AM

Yes, I've overlooked it altho one of my friends keeps bringing it up to me now I'm listening/reading. Point well taken so thanks for mentioning it here.

mmglobal · #3 (**permalink**) 05-10-2009, 03:59 PM

I'm anxious to hear some suggestions... I use United mileage plus visa to combine w/frequent flyer miles. I get a mile per dollar. My understanding is that the points we think we are getting with amex do no really translate into 1 point - 1 mile. (Correct me if I'm wrong.)

dshobbies · #4 (**permalink**) 05-10-2009, 10:37 PM

Yes Mark, you are wrong and right. Different sisters set their own point redemption schedule. Though most are 1-1, some are less, like El Al. Most other redemtions are also 1-1 but again, it's up to the sister to set it. Tonight we're going to Morton's. It's a 1-1. AmEx's own rewards are 2-1 (a $50 gift card is 10,000 pts). They also will pay for all travel, sister or not at 1.5-1. You make your arrangements through their travel agency with no limitations.

Again, their points do not expire and there is no yearly maximum. If another card better suits your needs, great, just be sure to take full advantage of it.