How to Use Credit Card Rewards Beyond Travel: A Comprehensive Guide

Affiliate links for the products on this page are from partners that compensate us and terms apply to offers listed (see our advertiser disclosure with our list of partners for more details). However, our opinions are our own. See how we rate credit cards to write unbiased product reviews.

The information for the following product(s) has been collected independently by Business Insider: Amazon Visa, Schwab Investor Card® from American Express. The details for these products have not been reviewed or provided by the issuer.

• Points and miles are best used for travel, but can also be valuable in certain other situations.
• Innovative uses include charitable donations, tax-free gift cards, shopping, and cash back.
• Our comprehensive guide explores the best ways to redeem credit card points without traveling.

You typically get the best value for your points and miles by redeeming them for travel. But from time to time, you may want to use your rewards for some other purchase. There are many valid reasons why travel may not be in the cards for you, or when your rewards are simply worth more to you in other ways. 

This guide will help you understand why and when to consider doing so, and the most innovative uses for credit card rewards beyond flights and hotels.

Introduction to non-travel rewards

These are some of the best ways to redeem credit card points without traveling. 

Benefits of diverse redemption options

There are many reasons to consider redeeming your points for rewards beyond travel. For example, some loyalty programs issue expiring points, which are no longer available to you after a certain period of inactivity. Point redemptions usually qualify toward account activity, so a small purchase or donation can keep the rest of your stash safe until you can use them toward a better redemption. 

Understanding your credit card rewards program

Reward programs vary greatly from issuer to issuer, and may further be subject to rules by any co-branded corporation such as an airline or hotel chain. Our guide to the most popular travel rewards credit cards can help you make sense of each loyalty program and its reward "currency", while our guide to the best credit card rewards apps help you track how many points you have, and when they will expire. 

As always, credit card rewards aren't worth pursuing if you're paying interest or late fees. When using a credit card, it's important to pay your balance in full each month, make payments on time, and only spend what you can afford to pay.

Redeeming rewards for cash back

Even amongst the best cash-back credit cards, redemption opportunities can vary between cards and issuers. These are some of the considerations you should consider when you convert credit card rewards into cash back.

Direct deposit or statement credit

Claiming your rewards in the form of a direct deposit in your bank account or a statement credit toward your credit card balance is one of the easiest ways to cash out what you've earned. 

Credit card rewards can have somewhat complicated tax implications, especially if you choose cash-back rewards instead of for products, services, or experiences. As a general rule, the IRS doesn't tax credit card rewards, as they are considered rebates or discounts on the purchases you made. However, one-off bonuses such as welcome offers or referral rewards may be considered taxable income. 

When in doubt, double-check your specific circumstances with your financial advisor. 

Comparing redemption rates

Redemption rates for rewards vary wildly between issuers. Business Insider's guide to what points and miles are worth helps establish approximate value, but most of our values were calculated with travel in mind. You'll typically get the lower end of our estimated worth per point on non-travel reward redemptions. 

Using rewards for merchandise and gift cards

Redeeming rewards for products and services can be a great way to use up leftover points since you won't be taxed on these transactions (as opposed to redeeming for cash back, which is often considered a form of revenue or income). 

Double-dip on earning rewards: Use an online shopping portal to maximize your opportunity to earn bonus miles, points, or cash back whenever you shop online 

Retail or restaurant gift cards

Most credit card issuers offer the option of cashing out your rewards into gift cards. Starbucks gift cards are extremely popular, but you can also choose cards from retail home improvement stores like Home Depot or Lowe's to restaurants such as the Olive Garden. 

Visa, Mastercard, or Discover gift cards

Many credit card issuers let you redeem a block of points for a gift card that can then be used for just about anything. For example, with a Blue Cash Preferred® Card from American Express, you can request a gift card that works just like any prepaid debit card whenever you have a balance of $25 or more in earned rewards.

Use credit card rewards for Amazon purchases

Many major credit card issuers including American Express, Capital One, and Chase let you use your rewards to pay for purchases on Amazon. Of course, you can also use the rewards earned on Amazon-issued cards such as the Amazon Visa to pay down Amazon balances. 

You'll typically get redemption rates of less than one cent per point when redeeming rewards through Amazon. But if you don't plan to travel and may lose rewards due to inactivity, Amazon can be an effective way of using up a stash of points, since you can apply points from the smallest increments of 1 point. 

Amazon frequently offers targeted discounts for customers who pay with credit card rewards. Many of these promotions only require you to pay a single point to trigger the discount, which can be a great way to preserve the bulk of your rewards while taking advantage of loyalty program savings. 

Paying bills and subscriptions

You can use your rewards toward less exciting expenses to keep more of your hard-earned cash in your pocket. 

Pay rent with your credit card rewards

The Bilt Mastercard® lets cardholders pay rent without incurring transaction fees, and even earns 1 point per dollar spent on rent payments. This innovative credit card also allows cardholders to pay off their rent charges with rewards by applying Bilt Points toward any outstanding balance. 

You might even get lucky with a free month of rent: On the first day of every month (lovingly called Bilt Rent Day), the issuer picks at least one person to win up to $2,500 toward that month's rent.

Read more about this card in our Bilt Mastercard card review. 

Utilities, streaming services, and more

You can pay for utility bills, streaming services, and other monthly recurring charges by choosing a credit card that allows you to use your rewards to "erase" part or all of your outstanding balance. Many of the cards in our best 2% cash-back credit cards guide are great for this purpose since you can easily cash out rewards toward your credit card statement. 

Best practices for bill payments with rewards

If your utility company won't allow you to use points directly to pay for your bills, don't fret — there's an easy workaround.

Redeem your rewards for a Visa or Mastercard gift card, then use the gift card to pay your bill online. Most card issuer gift cards are designed to work similarly to regular credit cards, so you should be able to input a 16-digit number, CVV code and any other relevant information to pay the charge through your utility company's online payment portal.

Get a magazine subscription

Many different credit card program rewards can be used to purchase various magazine subscriptions. Sites like Mags for Miles allow you to convert rewards from airlines like Alaska, Delta, and Frontier into subscriptions with magazines such as Vanity Fair, People, and Travel + Leisure. 

Buy yourself a meal

If you have an American Express card that earns Membership Rewards points, such as the American Express® Gold Card or The Platinum Card® from American Express, you can redeem your points for meals ordered through Seamless, the food delivery service. 

At checkout, select the number of points you'd like applied to your order. Your credit card balance will be issued a statement credit for the specified amount within two to four business days.

Experiences and entertainment

People who value experiences over material goods can redeem their points for concerts, dining events, and sports games. Here's what you should know about this redemption opportunity. 

Exclusive events and activities

Many issuers offer exclusive or advance access to popular activities. Capital One Entertainment offers some of the best entertainment opportunities for cardholders across the industry. For example, the issuer is the official presenter of Taylor Swift's Eras Tour and offered pre-sale access for Capital One cardholders before the tour began in 2023. Hordes of Swifties rushed to apply for many of the best Capital One credit cards, just to have the opportunity to purchase concert tickets a few hours before their peers. 

There are plenty of experiential opportunities available even if you don't enjoy music or large events. Chase and American Express have both offered exclusive dining opportunities for interested cardholders in the past. During the pandemic, 

Booking entertainment with points 

When booking entertainment with points, keep a few basic concepts in mind: Know the value of your points, and calculate their worth relative to the cash value. If an opportunity costs significantly more in points, it may make sense to pay in cash instead. However, the points value may not matter to you if the end goal is to experience an event you wouldn't otherwise attend. 

Many popular events sell out quickly, and issuers usually have very limited tickets or spots available. If you see an event that you know you want to attend, act sooner rather than later. 

Some events are also presented auction-style, allowing you to bid points against other program members for the opportunity in question. If you find yourself in a bidding war, take a moment to think about whether you truly are willing to pay the amount you're offering, or if you're just caught up in the excitement and intensity of the process. 

Donating to charities

There are many options for maximizing credit card rewards through charitable donations.

Contributing points to charitable causes

If you don't want to travel, you may be able to use your points for charity. If you have a Chase credit card, you can donate to several major nonprofits using your rewards card, then use Chase Pay Yourself Back to reimburse yourself for the transaction by applying Ultimate Rewards points to "erase" the charge on your credit card statement.

The Make-A-Wish Foundation accepts donations of airline miles and points from the United, American, Delta, Southwest, and JetBlue loyalty programs. Your donated miles allow them to send sick children and family all over the world to make their dreams come true. 

Miles4Migrants is another charitable organization that accepts travel rewards as donation currency. This initiative uses miles to rescue refugees trapped in dangerous or unsafe locations, providing transit at no cost to them. You can link your loyalty program account to Miles4Migrant and transfer points directly into its pooled accounts.

Miles4Migrants accepts donations from the following loyalty programs: 

• United Airlines MileagePlus
• Air Canada Aeroplan
• Alaska Airlines Mileage Plan
• JetBlue TrueBlue
• Air France – KLM Flying Blue
• Southwest Rapid Rewards
• Delta SkyMiles
• Lufthansa Miles and More
• American Express Membership Rewards
• Chase Ultimate Rewards
• Capital One Miles
• Citi ThankYou Points

Tax implications and considerations

Most points and miles donations are not tax-deductible, since the IRS considers loyalty program rewards to be a gift from the issuer to you, the individual. If tax-deductible contributions are important to you, consider redeeming your points for another purpose on this list. 

Investing your rewards

Some loyalty rewards can even be used to grow your financial investments. 

Converting your rewards into investment contributions

The Schwab Investor Card® from American Express earns Amex Membership Rewards that can be used for travel and many other redemption opportunities. However, this unique credit card also allows cardholders to convert their points into retirement savings, either online through their membership accounts or by calling 866-385-1227. 

Partner investment platforms

The Fidelity® Rewards Visa Signature® Card is just one of several cards that allow users to convert rewards into investments. Cardholders who invest the entirety of their cash back into an eligible Fidelity retirement account earn 2% cash back on every eligible net purchase. 

FAQs about using credit card rewards

Consider your personal financial goals, the comparative value of redemption options, and immediate needs. Travel redemptions may offer higher value, but non-travel options can provide flexibility and immediate savings or benefits.

Consider your personal financial goals, the comparative value of redemption options, and immediate needs. Travel redemptions may offer higher value, but non-travel options can provide flexibility and immediate savings or benefits.

Consider your personal financial goals, the comparative value of redemption options, and immediate needs. Travel redemptions may offer higher value, but non-travel options can provide flexibility and immediate savings or benefits.

Consider your personal financial goals, the comparative value of redemption options, and immediate needs. Travel redemptions may offer higher value, but non-travel options can provide flexibility and immediate savings or benefits.

The value per point or mile might be lower for non-travel redemptions than for travel options. It's important to compare redemption rates and choose options that align with your value expectations.

Many credit card rewards programs partner with online shopping portals, allowing you to use points or miles directly at checkout with select retailers.

• Small business finances
• Credit cards
• Points and miles travel
• Travel insurance
• Real estate investing

For rates and fees of the Blue Cash Preferred® Card from American Express, please click here.

For rates and fees of the American Express® Gold Card, please click here.

For rates and fees of The Platinum Card® from American Express, please click here.

ncG1vNJzZmivp6x7o8HSoqWeq6Oeu7S1w56pZ5ufonyxsdGspqeZnGKzqrrAp5qeZ5OnsqW102aamqqUqHy4rdisZK2nXarApnnCq5ydoaRisKK%2Bw2anqKGeqcBursSypqecXam%2FosLEpQ%3D%3D