What credit card point programs offer

One of the many reasons why consumers want a credit card has to do with point programs. This benefit, promoted by banks and plastics issuers, is a popular strategy to invite people to spend more and create greater loyalty.

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1. How do TDC points programs work?
2. What do TDC reward points offer?
3. How much are the loyalty program points worth?

If you want to know what they are and what they offer, we will tell you.

How do TDC points programs work?

The dynamics of these rewards are not difficult to understand. In essence, you get points every time you make a purchase with your credit card or as part of a sign-up bonus (welcome bonus) when you hire a new plastic and meet to spend a certain amount during the established period.

The amount of points that a loyalty program It will depend on the bank, the type of credit card, the amount you pay and the category of expense. For example, it is common for you to receive a reward of 3x or 2x for every dollar you spend on entertainment or travel.

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Generally, most credit cards simply give you 1 point for every USD in any kind of purchase.

Another important part of credit card point programs is related to redemption possibilities. As you accumulate points automatically, financial institutions give you different options so that you can take advantage of them as best suits you and within a time limit of 1 to 3 years.

What do TDC reward points offer?

Once you have enough points, you can exchange them for various benefits offered by issuers or banks. Depending on whether you have a basic or platinum credit card and your average spending, they can offer you more or less rewards. Among the most frequent options are:

• Cash or cash. It is one of the most popular alternatives to assert accumulated points. Depending on the amount you have, the financial institution converts the reward into money to your card account, which you can use to make payments. It is a way to save to pay the outstanding balance you have.
• Catalog of products and services. There are different banks that offer you a variety of products for you to exchange the points you have collected. It usually includes categories such as clothing, shoes, accessories, food, beauty services, movie tickets, and more.
• Miles. Another widely used option that is focused on those who like to travel. Since banking institutions have alliances with different online booking sites and airlines, they give you this type of rewards. You can use these miles in different ways, such as obtaining tickets, renting cars, getting ground transportation, paying for rooms, among others.
• Vouchers or discount coupons. This is another way to redeem the points you have in stores associated with the entity that sponsors the credit card. In some cases, they allow you to use these vouchers to make purchases online at selected merchants.
• Cashback or cash refund. You also have the possibility of converting the points into cash back so that they can deposit you into an account or have money in your credit card account to pay the balance. This is done by converting the points to their dollar equivalent.
• Donations. For those looking to help charitable causes, they can do so through the points programs. Many financial institutions give you the opportunity to donate what you have accumulated to your favorite charity in the form of cash.
• Other rewards. As part of their loyalty programs, banks can offer you other types of rewards. Points for gas purchases, classes, training, entertainment, and more are also common. These entities usually associate with different businesses so that you can exchange your points in specific brands.

How much are the points worth loyalty programs?

This is a basic consideration when applying for a particular credit card. Average price per point is usually 1 cent, but this varies.

Entities and issuers set different rates depending on the exchange system you choose. For example, about 5,000 points can be worth $ 50 or more when you travel or $ 25 in entertainment.

Therefore, the value may be subject to the different conditions imposed. There are institutions that can give you from 0.18 cents to buy merchandise or up to 1.25 cents for a gift card.

Although miles are similar to points, you can earn more of them using co-branded cards, giving you from 0.96 to a maximum of 5 cents.

Credit card point programs can be very helpful if you choose the one best suited to your lifestyle. If you want to compare the best cards in this category, you just have to visit our Blog Hispano de Negocios comparator.