What are credit card points and how do I get them?
Credit card points are a form of reward offered by many financial institutions to their customers. Basically, every time you use your credit card to make a purchase, you accumulate points that can be exchanged for a variety of rewards, such as products, services, travel, and even discounts on invoices. These loyalty programs are a strategy by banks to encourage the continued use of the card.
How are points accumulated?
Point accumulation varies depending on the credit card’s loyalty program. Generally, for each dollar or real spent, the user earns a certain amount of points. However, there are cards that offer extra points for purchases in certain categories, such as travel, supermarkets, or entertainment. In addition, some institutions offer promotions that multiply the number of points accumulated in certain purchases or periods.
To get credit card points:
1. Choose the right card:
Cards with more robust loyalty programs typically have higher annuities but offer more points per dollar or dollar spent. It’s important to choose a card that aligns with your spending profile.
2. Use the card for all possible expenses:
The more you use the card, the more points you will accumulate. This includes grocery bills, fuel, and even fixed bills such as streaming services.
3. Take advantage of promotions:
Pay attention to loyalty program promotions, which may offer bonuses or multiplication of points in certain purchases or periods.
What are credit card miles and how do I get them?
Credit card miles are a form of points specifically intended for the purchase of airline tickets. They can be accumulated through credit card loyalty programs that have partnerships with airlines. Miles can be redeemed for airline tickets, class upgrades, and other travel-related benefits.
How are miles earned?
Like points, miles are accumulated from the use of the credit card. The amount of miles acquired depends on the amount spent on the card and the rules of the loyalty program. In addition, many cards offer bonus miles for new customers, or additional miles for purchases made directly with airlines or on travel websites.
To earn credit card miles:
1. Join an airline loyalty program:
Most airlines have loyalty programs that allow you to earn miles. Link your credit card to this program to start earning miles on all your purchases.
2. Concentrate your spending on a single card:
This allows you to maximize mileage accumulation, rather than spreading your spending across multiple cards.
3. Take advantage of Sign-Up Bonuses and Promotions:
Often, when you sign up for a new credit card, you can earn a large number of bonus miles by reaching a minimum spending amount in the first few months.
Step by step to make money by selling points and credit card miles
One of the most profitable ways to use your credit card points and miles is to sell them. The sale of miles and points has become a common practice, with several specialized companies offering platforms for this transaction.
Step 1: Accumulate a significant number of points and miles
Before you think about selling, it’s crucial that you accumulate a substantial amount of points or miles. This can take time, depending on your spending habits and your card’s loyalty program.
Step 2: Check the loyalty program rules
Not all loyalty programs allow the sale of points or miles, or there may be restrictions on this. Check the rules of your loyalty program to ensure that you do not violate any terms that could result in the loss of points or miles.
Step 3: Find a reliable selling platform
There are several online platforms that buy points and miles from loyalty programs. These platforms make it easy to sell by offering quotes for your points or miles and taking care of the transfer process.
Step 4: Evaluate the offers and make the sale
After registering your miles or points on a platform, you will receive purchase offers. Compare these offers to quotes from other platforms to ensure you’re getting the best possible value. When you find a satisfactory offer, confirm the sale.
Step 5: Get paid
Once you make the sale, the platform usually transfers the payment to your bank account within a few days. It is important to choose reliable platforms that guarantee the security of both the transfer of miles and the payment.
Can points and miles be sold to companies and individuals?
Yes, credit card points and miles can be sold to both companies and individuals. However, direct selling to individuals can be more complex, as it involves the manual transfer of points or miles, and there may be associated risks, such as fraud or transfer issues.
Selling to companies
Selling to companies that buy miles, such as those mentioned earlier, is generally safer and simpler. These companies buy large volumes of miles and offer a more structured and secure process for the seller. They, in turn, resell these miles to consumers who want to buy airline tickets at reduced prices.
Sale to individuals
Direct sales to individuals, on the other hand, can be done through forums, social media groups, or by referral. In this case, it is important to take additional precautions, such as verifying the buyer’s reliability and ensuring that payment is received before transferring miles or points.
Strategies to maximize the accumulation of points and miles
To get the most out of your credit card and accumulate a significant amount of points and miles, some strategies can be adopted. These practices can help both accelerate the accumulation and optimize the use of the benefits offered.
1. Concentrate spending on a single card
One of the most effective ways to accumulate points and miles is to concentrate most of your spending on a single credit card, preferably one that offers a good conversion rate of spending into points or miles. This prevents your spending from being dispersed among several cards, which can dilute the points accumulated.
2. Take advantage of bonuses and promotions
Many credit cards offer bonus points or miles as an incentive for new customers or for users who reach a certain volume of spending in a specific period. Keep an eye out for these promotions, as they can be an excellent opportunity to quickly increase your points or miles balance.
3. Pay fixed bills with the card
Another strategy is to use the credit card to pay fixed bills, such as energy, water, internet and even taxes. In this way, you accumulate points or miles on expenses that were already planned in your monthly budget.
4. Participate in partner points programs
Some credit cards have partnerships with loyalty programs in stores, gas stations, pharmacies and other establishments. By shopping at these locations, you can earn double or even triple points, which enhances the accumulation of rewards.
5. Plan high-value purchases
If you’re planning a high-value purchase, such as an appliance or a trip, it may be worth waiting for points or miles accumulation promotions before making the purchase. In addition, if your card offers the option of interest-free installments, you can split the payment and still accumulate points or miles on the total amount of the purchase.
How to avoid problems selling points and miles
While selling points and miles can be a lucrative way to generate extra income, it is important to take some precautions to avoid any problems.
1. Check the reliability of the platform
When choosing a platform to sell your points or miles, do some research on the company’s reputation. Read reviews from other users and check if the company has a good rating on complaint sites and social networks.
2. Avoid sharing sensitive information
When making the sale, avoid sharing sensitive personal information, such as passwords or full credit card numbers. Most trusted platforms will only ask for the loyalty program ID number and the miles or points to be transferred.
3. Read the terms and conditions carefully
Before completing the sale, carefully read the platform’s terms and conditions to understand how the process works, what fees are charged, and what your responsibilities are as a seller.
4. Avoid direct transactions with strangers
Although it is possible to sell points and miles directly to individuals, this practice involves more risks. If you choose this modality, take additional precautions, such as requiring payment in advance and using secure payment methods.
Tax Implications of Selling Points and Miles
The sale of points and miles may have tax implications, depending on the legislation in your country. In some cases, the income earned from the sale of these rewards may be considered taxable income, and you may be required to report this income on your tax return.
How to avoid tax complications:
1. Consult an accountant:
Before you start selling points or miles regularly, consult with an accountant to understand what your tax obligations are and how you should declare this income.
2. Keep detailed records:
Keep all proof of mileage sales, including the amounts received and the fees paid. This will make it easier to file your income tax return.
3. Declare correctly:
On your tax return, include the income earned from the sale of miles in the appropriate category as directed by your tax accountant.
Final considerations
Credit card points and miles programs can be powerful tools for beginner investors who want to maximize the financial benefits of using their cards. With the strategic accumulation of points and miles, it is possible not only to obtain discounts on products and services, but also to generate extra income through the sale of these rewards.
However, it is important to be aware of the rules and restrictions of each loyalty program, as well as the tax implications involved in selling points and miles. With a thoughtful and well-informed approach, it is possible to make the most of these programs and intelligently integrate them into your personal financial strategy.
If you’re just starting to explore the world of points and miles, take some time to understand how these programs work and how they can benefit your financial situation. And, above all, use your credit card consciously and planned, avoiding unnecessary debt and keeping your finances always in order.
