Hi Jeremy, what should I do with my credit card points? I have a Chase Freedom credit card, with 150,000+ points, should I convert it to dollars and put in a high interest savings account? What is the best way I can use this money? Should I just let it sit in points and let it grow?
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Hey @Soniaa!
That’s a question I’ve never gotten before! So those points probably roughly translate to about 1 cent each so we’re talking about $1,500 or so. With any chunk of money, I would walk through the phases of investing:
For example, if you have non-mortgage debt, I’d probably convert those to cash and pay down the debt. No reason letting that money sit there and do nothing while you’re paying interest on debt. If you’re on at least phase 5, then I’d probably just spend the points on something you like. Like your next trip, use it to buy the flights or the hotel or whatever. 
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Yay! I asked a question no one asked before!
I don’t have any debt nor a house mortgage. I was just wondering if you thought it’s best to convert the points to gift cards, flights, hotels, or cash it out? Can’t really travel during this pandemic but maybe I’ll use it as a treat. And it seems like the cash value is same as the credit card conversion, so doesn’t really matter much how I choose to spend it. Thanks for the tip!
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Yeah… I’m just not a guy who obsesses over credit card points. I think overly focusing on them plays into the banks hands and causes you to focus on spending more to get more points. Sounds like your finances are in good shape, so whether you get $1,500 of value out of those points or $1,450 or $1,550 isn’t going to change your life. Just buy something you like! (And keep your focus on investing early and often, which is how you actually build wealth!)
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I am a huge fan of credit card “churning”. Yes, most people suck at credit cards and should avoid them.
But, if you can play it correctly you can make/save tons of money.
I would recommend looking at the chase sapphire preferred. With that card, those points are worth 1.25 cents instead of 1, at a minimum. Also, it enables you to transfer those points to any of Chases partners (most common are united and hyatt) which can get you even more value. For example, hyatt has all inclusive resorts in Jamaica/Mexico/DR that are 25,000 points a night but cash prices (normally) are $500-700/night. So cashing out those 25,000 points would net you $250-312.50 but using them for a vacation could save you hundreds more or be a treat you wouldnt have been able to splurge for otherwise!
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I get paying cash for cheap airfare and using points to upgrade seats, especially on long flights, to business class. But I don’t focus on cards because this encourages me to spend $. Pay off the cc balance every month and watch your Fico score climb. Enjoy living debt free.
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