Can you grow card rewards after redemption?
Increasing the value to rewards after redemption sounds strange. Well, it is possible and I have described how it is possible. I put almost all my spend on credit cards, so I earn a significant amount of rewards each month. Most of my rewards are in cashback. But I don’t often redeem those rewards because I am not that excited about redeeming cash back into my checking or savings account. I do redeem points that I earn on travel cards when booking hotels. I also redeem rewards from Costco’s credit card at Costco and points from Amazon’s card at Amazon because there are no other ways to spend those rewards. But other cashback rewards that I earn stay idle for a long time, doing nothing – until now!! What changed? you may ask.
Well, I signed up for the new credit card from SoFi. It is a Mastercard where I earn 2 points for every dollar I spend. If I redeem it as a statement credit, then I will get 0.5 cents for every point, which makes it a 1% cashback card. Nothing exciting since you can get 1% cashback on many cards. But if I redeem the points to their investment platform to invest, save or make a payment towards a SoFi loan, I will get 1c for every point, which makes it a 2% cashback card. There are a handful of cards that give you 2% cashback (e.g. Citi Double Cash). What makes the SoFi card potentially a better option than Citi Double Cash. When I redeem your SoFi rewards into their investment platform I am investing that cash back into stocks, bonds, mutual funds, etc. Over time, these redemptions have the potential to grow into a significant investment portfolio. SoFi also allows you to buy a fraction of some stocks and funds (limited but good selection), which differentiate it from the credit card offered by Fidelity (similar 2% cashback if redeemed into an eligible Fidelity investment account).
Additional perks
In addition to these exciting rewards, the card comes with cell phone protection, which is not a common benefit. And, there are standard Mastercard benefits as well. In short, my rewards will continue to grow after I redeem them if I leave them there for some time. In the short term, it may lose its value. But I am here for the long haul. Check out the card at https://www.sofi.com/credit-card/
Interesting fact:
This card allows redemption into crypto. I am not sure whether this is a good thing or not and whether it will help grow the rewards after redemption.
As always you find out other card benefits here. https://www.cardquarterly.com/card-benefits/
