Understanding credit card conversion rates to receive rewards
9) Understanding credit card conversion rates to receive rewards
Alright, so we’ve talked about all these points you can earn on your credit card, and how exactly you can use those points, but what really is just as important is understanding the conversion of your points—and the thing is that just about all credit cards are different.
Bear in mind that the conversion rates for credit cards really can greatly affect the rewards you can receive. For just one example, it used to be the case that using your credit card to purchase an airline ticket would have been a valuable 2X to 3X. With a general conversion of, say, $0.01 per dollar, that conversion would have meant that 2% to 3% of your spending on airline tickets would then go to discount future ticket purchases.
However, things change. And in the world of credit cards and credit card companies, they change all the time. Nowadays, there are a really wide variety of conversions for just about everything from grocery shopping to shopping with specific partner companies. Properly understanding what conversions your own credit card or future credit card offers for items purchased may greatly affect your decisions about spending. Where grocery shopping at the mart might bring you a conversion of, say, $0.015 per dollar, using your credit card at a hotel may be a paltry conversion of only about, say, $0.005.
Basically, when you’re shopping for a credit card you must try to find out the conversions and, most importantly, if those reward point conversions make sense for your regular spending habits. If they do then you’ve found the right company. If they don’t, keep on looking until you find the right credit card for you.
As we’ve said, with so many options open to you, there’s bound to be a great fit for you somewhere. So get out there and find it. The very best of luck to you!