Credit card points operate as a reward mechanism, incentivizing cardholders to make purchases using their credit card. Every time a cardholder spends, they accrue points based on the amount and often the category of their expenditure.
The accumulation of these points can lead to various redemption opportunities, ranging from travel bookings and merchandise purchases to statement credits or even transfers to partner loyalty programs. Points' specific value and versatility can vary based on the card issuer and the card's associated reward program.
Premium cards might offer additional bonuses or higher point accrual rates, though they often come with annual fees. Cardholders should familiarize themselves with their card's terms and the optimal redemption strategies to maximize the benefits.