The Trap Behind Paying Your Bill with Points

 Credit card companies make it so easy: you log in, see your balance, and right there is a button that says “Use Points to Pay.” It sounds perfect. But here’s the thing—while it feels simple and convenient, it’s usually not the smartest way to use your rewards.


Here’s why:


  • It hides the true value of your points.
    When you use points for a statement credit, the bank decides what they’re worth. And the value they give you is almost always on the low end.
  • It’s designed for convenience, not benefit.
    The “pay with points” option is front and center because the banks want you to click it. It saves them money when you redeem this way.
  • It can make you less aware of your spending.
    Applying points to your balance might feel like you’re paying down debt, but it’s not the same as making a payment from your bank account. It can give a false sense of progress.
  • It locks your rewards into one choice.
    Once you’ve redeemed for a statement credit, that’s it—you can’t go back. If you later realize those points could’ve been used in a better way, they’re gone.



In other words, it’s easy, but it’s easy in a way that benefits the bank more than it benefits you.


If you’re in a tight spot and need relief on your balance, using points this way isn’t wrong—it can help keep you from paying interest, and that matters. But if you’re not in a crunch, it’s better to pause before hitting that button.


👑 The Points Princess will show you how to make smarter choices with your rewards—because those points should work harder for you, not for the bank.


✈️ Come be part of the conversation in our Points Princess Facebook Group — and while you’re there, follow our Facebook Page for daily rewards inspiration.


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