Hi everyone. Know this is typically frowned upon when using points, but I was wondering if people have been started using their rewards and cash back incentives for every day purchases like groceries and gas rather than saving for a big travel expense? Feel like day to day expenses have gotten so high using points may help supplement, but interested to hear what other people may be doing.
Using Points for Essentials?
byu/Dry-Interaction-7410 inCreditCards
Posted by Dry-Interaction-7410
8 Comments
I use cash back cards exclusively. I don’t travel much so it has never been something I focused on. When I earn cash back I apply it to my outstanding balances, which are mostly daily expenses.
That’s the cash back lifestyle my guy! I only have one points earning card: the Capital One Venture X, but I use it for cash back using the travel eraser.
I get at least 2% and up to 7 or even 10% on any purchase in my life (not including rent). I think of it as a few % discount on living!
So, yes, this is very normal. However, if you’re using Amex points for statement credits, that’s hugely suboptimal as the points are very low in value when cashed out as opposed to being transferred to rewards partners.
I focus on cashback, not travel, so I just cash out my points. I typically don’t have a specific purpose for this cashback, though sometimes offset big irregular expenses (both needs and wants), or put extra in investments.
Though I will say if money is tight enough that you are considering using points for essentials, then you are very likely not in a financial position where you should be traveling. Focus on cashback, get your finances in order, get an emergency fund built up. Then it makes sense to consider travel and using credit cards to help with that.
Consider a cash back card. I’d typically recommend the CCC, but it was taken from us (RIP). If expenses are your highest cost, such as utilities, I would recommend US Bank’s Cash + card. A pro-tip is getting another US Bank card and product-changing that into a second Cash + card. If you specifically mean groceries and gas, try one of the AAA cards to tackle that (5% back), and the PayPal Debit Card to tackle the remaining cost (strongly recommend this for groceries, as gas pumps and debit cards are a security risk). I understand many are against the PayPal debit card after the soon-to-be-nerf, but it’s still possible to use the cash back for statement credit, gift cards, and PayPal purchases, from what I understand.
If it’s cash back I redeem once every 2-3 months. If it’s points that are basically 1cpp then I redeem every month cuz they can be nerfed any time.
Cash back setups are the norm, most people aren’t experienced in redeeming transferable points for travel and many don’t even realize that’s a thing that exists at all. There are only 6 transferable points ecosystems in the US vs hundreds of banks and credit unions that issue credit cards.
Just redeem credit card cash back at least once per month as a statement credit or direct deposit, ideally set up auto-redeem if possible. No need to line up redemptions to the T to “cover” random groceries and essentials expenses.
I have a combination of cash back and travel points.
If you want cash, then I would go for a card that’s geared for that. Certain travel points card have an absolutely terrible redemption for cash and a cash back card would give you full value in comparison
dang! are day to day expenses that high?? i hope i don’t ever have to do that.