Building a points strategy: When to redeem, when to save, and what to avoid

Credit card rewards are an often-overlooked financial asset. Many cardholders forget they even have points, while others redeem them without much thought. If your rewards are sitting unused or being cashed in at the wrong time, you could be leaving real value on the table.

With a bit of know-how and a clear points strategy, you can get more out of your everyday spending. If you’re new to credit card rewards, don’t worry. We’ll walk you through the smartest ways to redeem your points and flag the common mistakes to avoid so you can maximize your efforts.

TL;DR
Travel rewards? Save points and redeem strategically
Cash back or statement credits? Redeem regularly
Not sure? Save some, redeem some

Maximizing your rewards redemption value

If you have points burning a hole in your pocket, take a moment to determine their actual value based on different redemption options. Most rewards programs offer at least one, if not more, of these redemption opportunities:

• Travel
• Cash back or statement credits
• Gift cards
• Merchandise
• Charitable donations
• Point transfers to travel partners
  

Your rewards hub should include a calculator that lets you plug in the number of points you want to redeem. This tool shows what those points are worth across different options (like cash back, gift cards, or travel), making it easier to compare value at a glance.

When you book a flight through the Avion Air Travel Redemption Schedule, your points are worth at least two cents each, and often more. Use those same points for a statement credit, however, and their value drops to about 0.58 cents each. That difference may seem minor, but it can be significant when you’re redeeming a large balance.

The goal is to stretch your points as far as possible by choosing redemptions that offer the most value for the fewest points. Just keep in mind that the “best” option isn’t fixed. Promotions and special offers can influence point value, so it’s worth checking each time you redeem.

Saving your points vs. regular points redemptions

We’ll play devil’s advocate and show why both saving up points and redeeming them regularly can make sense, depending on how you use your card and what you’re working toward.

The case for saving up

If you don’t check your rewards balance often, you’re probably saving up your points without realizing it. That’s not necessarily a bad thing if you’re aiming for a big redemption. For example, you can redeem 65,000 Avion points for a round-trip flight to Europe, with a maximum value of $1,300.

Saving also gives you the flexibility to take advantage of seasonal or limited-time bonus offers. This can be especially useful if you’re planning a large purchase or a future trip.

The case for redeeming regularly

On the other hand, regularly redeeming points can be the smarter move—especially if you mostly use them for statement credits. When inflation is high, points that sit unused tend to lose value over time. Plus, you’ll miss out on steady cash-flow relief that can help keep your credit card balance in check.

Frequent point redemptions also make it easier to stay on top of changes to your rewards program and reduce the risk of your points expiring due to account inactivity. 

There’s also a learning benefit: using your points early helps you get comfortable with the program, so you’re more likely to take advantage of limited-time offers or bonus opportunities down the road.

How to strike the right balance

The right approach depends on you and your financial goals, spending habits, and the rewards program you participate in. Let how often you use your card and what you want to redeem for guide your points strategy.

Do’s and Don’ts

Now that you understand a little more about building a points strategy, don’t forget these essential redemption rules.

Do:

• Take advantage of bonus events and partner offers: These are often easy ways to earn points on purchases you’d be making anyway. For example, if you link your RBC credit card with your moi rewards card and make a qualifying purchase, you can earn bonus Avion points.  
• Watch for timing that affects your rewards: You’ll probably get more out of your travel points by travelling during the off-season.If you’re going to make a big rewards purchase, perhaps wait until there’s a major sale or promotion.
• Adjust your redemption strategy as your needs change: The beauty of a flexible rewards program is that you’re not locked into a single redemption option. Need help paying off your balance? Redeem points for a statement credit. Planning a trip? Convert your points or book travel with them.
  

Don’t:

• Choose low-value redemptions: Do a little research into which options give you the highest value per point and skip those that don’t measure up (we like to get at least 1 cent per point). Generally, options like travel give you more value than merchandise.
• Forget about your rewards: In past Canadian studies, around 20% of credit card reward participants said they didn’t even know how many reward points they had accumulated. If you don’t use your points, they’re worth nothing.
• Overspend in order to earn rewards: It’s tempting to purchase something you didn’t plan on buying if there’s a nice bonus or reward promotion, but resist the urge. Any rewards you might earn will be offset by the interest you’re charged.
• Ignore program updates or policies: Although it may not happen often, your card issuer might send updates about adjustments to the reward program’s earn rates or redemption options, so pay attention. This is especially important if the policy impacts when your points expire.
  

Final words

Maximizing your credit card rewards comes down to knowing your program, understanding your options, and aligning your strategy with your goals. Whether you choose to save points for a big redemption or cash them in regularly for statement credits, being intentional can help you get the most value from your everyday spending. Keep learning, stay flexible, and your points can go further than you might think.

Read more about credit cards:

• The best no foreign transaction fee credit cards in Canada
• How bad access to credit keeps newcomers from getting ahead
• Earning, saving, and spending money in Canada: A guide for new immigrants
• How to build confidence in your financial life

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