What are points? People hear about points all the time when a credit card commercial airs on TV, but how many people really understand what these are and what the advantages are? So let’s examine some basics and get a good grounding in the concept.
Points, to put it simply, are credits. They serve as a kind of tradeable currency a credit card holder earns whenever certain business services are utilized with that particular card or when something called a “loyalty account” is opened with the company or companies offering points. The way they work is simple enough to understand: the more you spend on goods and services using that card or through a loyalty account, the more points one earns. Now, points are most often used with travel and hotel booking. So the more points one earns, the greater the benefits and number of discounts that user will be able to take advantage of when it comes to booking flight and hotel reservations. These often translate as reduced ticket fees based on mileage reward points, for example.
Many credit card companies now offer a points earning scheme as an incentive to sign up and open a charge account with them. It’s actually a pretty good deal at both ends of the spectrum. The credit companies get more customers, and those customers earn additional value as they use that card that can really help cut down on travel expenses. This is especially important for anyone who travels extensively as part of their business or employment, or for persons who take annual or semi-annual vacations. To give one example of the benefits: suppose a single person with an income of $40,000 a year uses his or her new credit card and racks up around 50,000 points and these on top of 30,000 to 100,000 points just as a sign-up bonus? This equals the value of two to four round-trip airline flights (up to $2400) or two to six nights at a first class hotel.
So imagine what the particular traveler can do with these points. With proper planning, a person can end up taking a trip almost for free. Of course, some points schemes have deadlines for usage and others have certain conditions that can complicate matters. Consultation with guide sources like upgraded points llc can help one gain a greater understanding as to how points work and what companies offer the best, condition-free plans for rewards.