Ask HN: When should I withdraw credit card reward money/points?

1 pointsveggieburrito2y ago2 comments

This was spurred by a concurrent post about not storing money in PayPal or equivalent - also crypto exchanges.

I like credit cards that have cash back rewards and typically redeem when they’re around a hundred dollars. But maybe would consider doing this at a lower reward value if there’s any risk?

Any thoughts on this or is it “safe” to let rewards accumulate to higher values? Not sure what the fine print reads on the rewards agreements etc but would assume it differs between banks.

I have maybe 4-5 active cards and only really use 2 of them. Maybe end up redeeming a couple hundred dollars of cash rewards maybe a couple times a year.

Cheers and thanks

2 comments

josephcsible2y ago

I log in every month to look at my monthly statement, and every time I do that, if my cash back balance is high enough that it will let me redeem, I do so.

MattGaiser2y ago

I am a credit card churner who collects hundreds of thousands of points a year. Our typical subreddit advice on this is to use as soon as possible in a way that meets your goals.

Why? Devaluations and restrictions are pretty regular, so as soon as there is no benefit to holding, you should extract them.

Cashback has fewer devaluations, but additional restrictions or changes to earning rates often come about. Besides, money now has interest value again, so why give an interest free loan?

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