What are credit card points?

Summary

• Credit card points reward you for purchases you already make, helping you get more value from the money you spend.
• Some reward cards earn points at a flat rate, while others reward specific spending categories.
• Welcome offers could help boost your points balance early on, especially if the spending requirement fits your budget.
• Redeeming points takes many forms, including travel, cash back, charitable donations, and online purchases.
• The value of each point varies by card and redemption option, so knowing how your program works helps maximize the value of what you earn.

Credit card points are rewards you earn on certain kinds of credit cards. Every time you make a purchase with a rewards credit card, you collect points. The number of points you earn typically depends on your card and where you shop.

Understanding how you earn credit card points is important, but so is knowing how to use them. When you redeem points in ways that match your goals — whether that’s travel, cash back, or paying down your balance — you could make every purchase work harder for you.

How can you earn credit card points?

Earning credit card points is easy. Swipe your card to make a purchase, and your provider awards points based on how that transaction fits the reward program. For example, one card might reward more points for dining purchases, while another offers more for travel.

The structure of the rewards program also affects how you earn points. Most fall into one of two types — fixed-rate or tiered category — and both may offer welcome points when you open a new account. Let’s take a closer look at how each structure works.

Fixed-rate points

A fixed-rate point structure means you earn the same number of points on every purchase. For example, you might earn two points for every dollar you spend, whether you’re picking up groceries, paying bills, or booking a trip.

Some people prefer a fixed-rate points program, like the U.S. Bank Smartly™ Visa Signature® Card, because it keeps everything simple. You don’t have to track spending categories — just use your card as you normally do and watch your points add up.

Tiered category points

With a tiered category point structure, like the U.S. Bank Altitude® Go Visa Signature® Card, you earn a different number of points in different spending categories. That means you might earn just one point per dollar on most purchases, three points on groceries, and four on travel, depending on your card.

Tiered categories sometimes rotate the top spending category, changing which purchases earn the most points every quarter. One quarter, travel might be the top category, and the next could be streaming services.

Rotating categories or not, this structure can be especially rewarding if you tend to spend more in certain areas. If you keep an eye on which category earns the most, you could make your everyday spending go further.

Welcome offer points

Both fixed-rate and tiered category rewards cards may include a welcome offer of bonus points that you earn for opening a new account. Qualifying usually means meeting certain requirements, such as spending a specific amount within a set time frame.

Welcome offers change from time to time, but they could help you earn credit card points fast — which may be especially valuable if you’re working toward a particular goal. The key is to choose a card with rewards that match your spending habits and a spending threshold that fits your budget. That way, you could start earning points without putting other goals on hold.

How do you redeem credit card points?

Redeeming credit card points usually starts in your online account or mobile app, where you can choose from several options. Some of the most common ways to redeem points include:

• Statement credits. Many providers will apply the cash value of your credit card points to your bill.
• Cash back. You may be able to receive the cash value as a check or a direct deposit into your bank account.
• Travel purchases. Points can often be used for hotel stays, flights, or rental cars through your provider’s travel portal.
• Charitable donations. Some card providers, like U.S. Bank, allow you to donate your points to nonprofit organizations.
• Shopping portals. Your provider might have a shopping portal where you can buy items from retailers.
• Online retailers. Some providers partner with online retailers, allowing you to use your points at checkout.

While the process is often simple, you want to consider your goals before you redeem your points. Using your points for travel or gifts may make sense during the holiday season. On the other hand, redeeming points for cash could help you build an emergency fund or reach another savings goal.

Be sure to review the terms, too. Credit card points may have expiration dates, minimum redemption amounts, and fees that impact your options. Knowing how your rewards program works helps you protect your points and ensure they’re worth as much as possible when you’re ready to redeem them.

How much are credit card points worth?

Credit card points are typically worth about one cent each when redeemed.1 However, that value often varies depending on your card and how you use your points.

For example, cash back or statement credits usually give you one cent per point. Using points for travel usually stretches their value, while redeeming points for merchandise often provides less value per point.¹

These differences come down to how each card provider structures its rewards program. Because providers create their programs, they determine — and can adjust — the value of their points.²

How do you maximize your credit card points?

Earning credit card points already helps you get more out of the money you spend. But when you use points thoughtfully, you could unlock greater rewards faster.

Here are a few tips for getting the most value out of your credit card rewards:

• Choose a card that works with your spending habits. You want to get a rewards card that offers the most points in the categories where you spend most often. For instance, if you dine out frequently, consider a card that offers more points on restaurants.
• Understand the reward program rules. Before you apply for a card, be sure to review the details. That includes checking point values, earning limits, and any minimum requirements for earning or redeeming points.
• Minimize your costs. Credit cards sometimes charge an annual fee that may reduce the value of your rewards. Estimate how much you might earn in points and compare that to the cost to decide if the card makes sense for you.
• Evaluate other benefits. Points are just one benefit of having a credit card. Take a look at any other benefits, such as travel insurance, purchase protection, or special discounts, before selecting a rewards card.

Maximizing your points isn’t just about earning more; it’s about using what you’ve earned in ways that support your goals and fit your lifestyle.

Make the most of your credit card points.

Knowing how credit card points work can help you get more value from everyday spending. With a little planning, you could turn routine expenses into meaningful rewards that bring you closer to your financial goals.

Sources

¹ LendingTree, “What are credit card points? What are they worth?” https://www.lendingtree.com/credit-cards/articles/what-are-credit-card-points-what-are-they-worth/, October 14, 2025, accessed November 5, 2025.

² WalletHub, “What are credit card points?” https://wallethub.com/edu/cc/how-do-credit-card-points-work/50906, September 15, 2025, accessed November 5, 2025.