
Sign up & start saving!
Get our weekly newsletter for the latest in money news, credit card offers + more ways to save
Finder is committed to editorial independence. While we receive compensation when you click links to partners, they do not influence our content.
If you blew your budget during the holidays and have vowed to get back on track in the new year, you may be able to use those rewards to trim down your debt. Credit card rewards can be turned into statement credit if you’re paying interest on your balance.
Most reward credit cards allow you to redeem points for cash back to your account. How this is done depends on your card, but generally involves the following steps:
Once your redemption is processed, allow several business days for the cashback reward to be credited to your account.
The amount of points required for a cashback reward varies by reward program. Below, we’ve outlined what’s required to redeem $100 worth of cash back through all the major credit card reward programs.
Rewards program | Points for $100 cash back | Redemption requirements |
---|---|---|
American Express Membership Rewards | 16,700 |
|
American Express cash back | 10,000 |
|
Chase Ultimate Rewards | 10,000 |
|
Wells Fargo Rewards | 10,000 |
|
Citi ThankYou Program | 20,000 |
|
Capital One cash back | 10,000 |
|
Capital One miles | 20,000 |
|
Barclaycard cash back | 10,000 |
|
Barclaycard miles | 20,000 |
|
Bank of America rewards | 10,000 |
|
Table information is valid as of December 2018 based on provider websites.
Back to topBefore using reward points to pay off your credit card balance, make sure you consider the following details:
At the start of December, Milla was approved for a new American Express credit card that offered 1x point per $1 spent and 20,000 bonus points if she spent $2,000 in the first three months she had the card.
Milla ended up spending $4,000 in December and started the new year with 24,000 points and $4,000 debt.
While Milla wants to pay off her credit card, she also wants to get good value out of her rewards. So she considers her options:
Based on this comparison, Milla decides to redeem her points for a $240 gift card. She uses this to pay for dining and retail and puts the money she’d normally spend on these categories towards paying off her credit card balance.
Redeeming your reward points for cash back to repay your credit card balance isn’t always the most valuable way to use your points. However, it could help make a dent in repaying smaller debts.
If you want to clear your debt without gaining interest and want to save your points for a different reward, consider a 0% balance transfer credit card could be a good idea.
Back to topImages: Shutterstock.
Use these credit card combinations to boost your rewards earnings.
A small business credit card that automatically donates your cashback rewards to charities.
A minor step up from the standard Capital on Tap card.
A business line of credit is a useful tool. But as a startup, you may not qualify for the best interest rates with most lenders. Explore your options — and alternatives — for flexible funding as a new business.
Deserve and Seneca Women’s new credit card will reward you for shopping with women-owned businesses.
Support your child’s financial knowledge and teach the important real-life money skills in a safe and controlled way with a kids’ debit card.
Get up to 10 cents off on your bp and Amoco station gas purchases.
Take advantage of miles, points and perks with a card that best fits your lifestyle.
Here are our top balance transfer picks for 2021.
Here are our top picks for 2021.