Credit Card Points Hack - Get more Value from your Points

Credit Cards
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Dear Clarkies,

A listener recently called in with a gripe: “Why can’t I get a check from my 2% cash-back cards anymore?” Specifically, they mentioned Wells Fargo Active Cash and Citi Double Cash.

Clark’s response? This might be part of a growing trend, credit card companies nudging us to spend those rewards on stuff (hello, gift cards!) instead of cashing out.

My Old Strategy:
For years, I let my points pile up like a squirrel hoarding acorns. Then, when a big purchase or bucket-list experience came along, I’d cash in those points to soften the blow.

My New Hack:
Recently, I flipped the script. Here’s what I do with my Wells Fargo Active Cash card:

  • Use points to pay down part of my balance—say, $1,000m then pay the remaining balance from checking.

  • Move that same $1,000 from my checking account into a money market account at my credit union.

  • Tag that money for the big splurge or experience I had in mind.

Why? Because when interest rates were north of 4%, that earmarked money is now growing instead of sitting idle.

It’s like turning cashback into a mini-investment strategy!

Just a little nugget from the peanut gallery.

What do you think—smart move or overkill?

Regards,
Paul

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I subscribe to the K-I-S-S principal. Keep It Simple Stupid! I have 3 cards with rewards. When any of them get above $50 I just do a statement credit and forget about it.

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There might also be a potential tax liability to getting a check versus a credit on your credit card.

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I have the Citi double cash card and use regularly. I request my cash award to be directly deposited to my checking acct. because I like to keep up with that extra income. To me that is the same thing as waiting for them to send you a check.

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