Building a Points Strategy: When to Redeem, When to Save, and What to Avoid – MoneySense

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

TL; DR
🧳 Travel rewards? Save points and redeem them strategically
💵 Cashback or statement credits? Redeem regularly
🤔 Not sure? Save some, redeem some

Maximize the redemption value of your rewards

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

• Travel
• Money back or statement credits
• Gift vouchers
• Merchandise
• Charitable donations
• Point transfers to travel partners

Your rewards hub should include a calculator that allows you to enter 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. However, use those same points for a statement credit and their value drops to about .58 cents each. That difference may seem small, but it can be significant if you redeem a large balance.

The goal is to grow your points as far as possible by choosing redemptions that offer the most value for the fewest points. Keep in mind that the “best” option is not fixed. Promotions and special offers can affect the points value, so it’s worth checking every time you redeem your points.

Saving your points versus redeeming points regularly

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

Save points	Redeem regularly
Best for big trips or major purchases	Best for cash flow and bill relief
This allows you to wait for promotions or bonuses	Protects against inflation
Works well with travel rewards	Works best with statement credits
Requires patience	Requires consistency

The argument for saving

If you don’t check your rewards balance often, you’re probably saving your points without even 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 return 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 are planning a major purchase or a future trip.

The plea for regular redemption

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

Regular points redemption also makes it easier to stay informed about changes to your rewards program and reduces the risk of your points expiring due to account inactivity.

There’s also a learning benefit: Using your points early helps you become familiar with the program so you’re more likely to take advantage of limited-time offers or bonus opportunities later.

How to find 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 determine 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.

Doing:

• Take advantage of bonus events and partner offers: These are often simple ways to earn points for purchases you would make anyway. For example, if you have your RBC credit card with your moi rewards card and make a qualifying purchase, you can earn bonus Avion points.
• Pay attention to the timing that affects your rewards: You’ll likely get more out of your travel points if you travel out of season. If you’re going to make a big reward purchase, maybe wait until there’s a big sale or promotion.
• Adjust your redemption strategy as your needs change: The great thing about 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 trips with them.

Don’t:

• Choose low value redemptions: Do a little research on which options will give you the highest value per point and skip the options that don’t measure up (we like to get at least 1 cent per point). In general, options like travel give you more value than merchandise.
• Forget your rewards: In previous Canadian studies, about 20% of credit card rewards participants said they didn’t even know how many reward points they had collected. If you don’t use your points, they are worth nothing.
• Spend too much to earn rewards: It’s tempting to buy something you didn’t intend to buy when there’s a nice bonus or reward promotion, but resist the urge. Any rewards you may earn will be offset by the interest you will be charged.
• Ignore program updates or policies: While it may not happen often, your card issuer may send updates about adjustments to the rewards program’s earning rates or redemption options, so keep an eye out. This is especially important if policies affect when your points expire.

Last words

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

Read more about credit cards: