How To Best Use Your Credit Card Points

Credit Card Points

Isn’t it exciting when you receive lots of reward points on your credit card? Having a credit card has a lot of benefits for the customers. It helps to improve their credit score and get rewards on the credit card when they purchase something. To earn the best reward rate you should know the MCC code of the store. You won’t get reward points for all your purchases. The MCC codes will tell you which stores to shop for your particular product or service. You should read the complete guide to merchant category codes to know more about the MCCs.

How knowing the MCC code helps you?

It can be very frustrating when you purchase something from a shop and don’t get any reward points. This often happens because the MCC code of that store may not provide the particular reward you are looking for. The merchant category code categorizes the products or services of a business into certain categories. If, for example, a restaurant is categorized as a ‘restaurant’ business and if you buy any grocery item from a small shop that’s inside the restaurant, then you won’t get any reward as the MCC code is of the restaurant and not of grocery. So, if you know the MCC code of the stores in your locality, you can shop strategically to get the most reward points.

How to redeem your credit card points?

You can get rewards in various forms. You can use the reward points that accumulate on your next purchase, so you have to pay less than the actual amount of the product or service. If you earn travel miles then you can use it for paying for an air ticket or restaurant on your next trip. You can also get cashback during shopping which you can later use to pay your bills or simply save it. Some shops offer you to buy gift cards using your reward point. So, you can buy gift cards for your loved ones with your reward points, instead of using cash. Reward points can save you a lot of money.

Most people, surprisingly, don’t redeem their reward points. They often feel that the amount is negligible. But just imagine how many times you have to go to a shop to purchase things and every time you earn some reward points. At the end of the year, the amount becomes significant. So, you should shop wisely by looking at the MCC codes of your local stores so that you can accumulate lots of reward points.