Converting to Cash is Not Wise

I see a lot of people ask that should I convert my points to the cash. The thing is when you have 1000 points most of the cards when converting to cash will give you around one-fourth of the value. So every 1 point will give you 0.25 or 0.20 based on the cards. So it is not wise to convert to the cash from the points.

PC: Pixabay.com

If you want cash itself, better to take the cashback card which gives the cashback rather than points. So you don't have to do the hassle of converting from points to cash. The thing is points are best if you want to redeem itself for some things. Like for example, I have Diners Club Privilege card, which gives Rs 0.2 per 1 point. Whereas when I convert that to dining voucher, it will give around Rs 0.5 per 1 point. Now the card usage is primary to have dining features.

And just like that there are cards which gives higher value when converting to certain things. Like the Amex card is great to convert to Marriot points. And using the marriot points you can stay in any Marriott hotels at the very low price. And that's why it's always in loss if you are not using the best value of your points.

The thing is people usually get the cards thinking that's everyone is using, it would be good. But that's not true. Every person should have the card as per their spending habit. If you are spending more online and doesn't go out much, then best is cashback card to get money. If you are a traveller, get a card which gives maximum reward point on travel. This way you will make the maximum benefit from your cards.