Without a doubt, businesses drive sales and reward customers using loyalty programs.

Everywhere you look, you are encouraged to sign up for points. Points are typically rewards that you earn when using a credit card or service. Once you have accrued enough points, you are eligible to redeem the points for the established gifts or rewards.

How do you earn points?

Points can be very lucrative and lead to significant payback if you choose them wisely. Some of the more common ways to earn points include using the following:

• Credit cards – 529, gas, airline miles 
• Retailers – Costco, Target, Williams Sonoma
• Restaurants
• Mobile Apps – Uber, Starbucks 

Some establishments use their own POS tracking systems to award you points when you patronize their businesses. For example, a restaurant or a hair salon might award you a discount once you have spent a certain amount on their services. In other words, dollars spent translates into points earned toward your next meal or hair product. This drives customer loyalty.

How do you use points?

There is a whole spectrum in which you can use points. I have friends who look forward to using points towards free beverages at Starbucks, and another friend who is ambitiously saving airline points for a trip to Australia! 

So first, set a goal for how points can have an impact on your life. That might be dollars towards college tuition, travel, gas at the pump, fashion, fine dining and many other options.

Next, research point options that align with your goal.

How do you select point providers?

Many credit cards offer a 529 plan, which allows you to save for your children’s college education. My husband and I began saving with the 529 plan when our son was an infant. We were able to use those funds for his first semester of college, and then later made a contribution toward his grad school. It was definitely a good use of points considering the escalation of higher education costs.

Some credit card users simply use the cash back option to deposit dollars into their account after a certain amount is spent.

Some points, like POS at a retailer are automatic. Your wait person may simply tell you when they bring your check that you have earned a credit.

Other point systems might require some investigation. For example, if you want to secure a credit card with a 529 option for college savings, you ought to consider the following:

• The interest rate of the credit card.
• The annual fee (if any) for being a cardholder. 
• The match rate for dollars spent (e.g., 1% vs. 2%)
• The maximum contribution allowed each year.
• The ease of the process to release your funds when you are ready to use them.

If you are securing a credit card to earn miles towards travel, you ought to consider the following:

• The interest rate of the credit card.
• The annual fee (if any) for being a cardholder. 
• The match rate for dollars spent (miles earned).
• The airline (e.g., United, Frontier, Southwest, etc.) associated with the card aligns well with your travel plans (e.g., offers easily accessible flights to your destinations).
• The ease of the process to release your miles when you are ready to use them.
• The limitations of use (e.g., blackout dates).
• Other perks like free baggage or other upgrades.

If you spend a lot for retail, you might consider the programs that enable your money to go further on purchases.

Points expire and may not transfer

For some providers, points do expire. Some, for example, Starbucks, will send you a message indicating your points are about to expire to encourage you to use them. Also, points are typically not transferable. If you were to pass away, no one will likely inherit your points. So make sure you use them!

Share your point experiences and recommendations with us in the comments section.