To earn points with your credit card and not lose any, you need to know how many points you earn per dollar spent, when they expire, and where you can transfer them before the deadline.
How credit card points work
Some credit cards give points for each purchase. The most common calculation is based on dollars spent: the bank converts the purchase amount from reais to dollars and applies a number of points for each dollar.
An example with round numbers: if the card gives 2 points per dollar and the dollar is at R$ 5, a bill of R$ 3,000 equals US$ 600 and generates 1,200 points.
The number of points per dollar usually varies depending on the card category. The most basic ones usually don't earn points or earn very few, and those with higher annual fees give more points.
Each bank has its own rules, which are in the rewards program regulations. That's where you'll find the conversion rate, purchases that don't earn points, and the expiration deadline.
Bank points and miles: what's the difference
The points your card generates first go to the bank's own program. From there, they can be used in two ways:
- Direct redemption: exchange for products, statement discount, account credit or shopping vouchers, within the bank's catalog.
- Transfer: sending points to loyalty programs of airlines or retail partners, where they become miles or points in that program.
Transferring to airline programs usually pays off more when your goal is to travel. Direct redemption tends to be simpler, but in many cases the value of each point ends up lower.
Some cards already earn points directly in a partner program. In this case, the points go there without going through the bank.
What counts and what doesn't count for points
Not every card purchase earns points. Regulations usually exclude:
- Payment of bank's own fees, such as annual fee and interest.
- Credit cash advance.
- Payments of bills and Pix made with the card, in many cases.
- Statement installments and late payment charges.
- Refunded or cancelled purchases, which have their points removed.
Installment purchases usually earn points, but some banks credit all points at once while others credit them installment by installment. It's worth checking the regulations so you're not caught off guard by the balance.
Late payment on your bill can also cost you in this regard. Some programs suspend point earning or cancel points for those who are in default.
Expiration date: the point that makes people lose the most
Points have an expiration date. The deadline depends on the program and can change depending on the card type. In general, it's counted from the date each batch of points was credited.
This means that in the same balance, there are points expiring on different dates. Those who accumulate gradually and redeem occasionally run the risk of losing the oldest ones without realizing it.
When points are transferred to an airline program, they take on that program's deadline, which is also limited. Transferring without having a destination in mind might just swap one expiration for another.
Another point to note: when you cancel the card, the points accumulated in the bank's program may be lost. Before cancelling, redeem or transfer your balance.
Step by step to avoid expiration
- Open your bank's app and look for the points or rewards section.
- Check your total balance and the statement with the expiration dates for each batch.
- Write down on your phone's calendar the date the first batch expires, with a reminder one month before.
- Decide what you'll use the points for: travel, statement discount, or products.
- If travel is your goal, check how many miles the route requires before transferring.
- Transfer or redeem a few days in advance, because the transfer may not be immediate.
- Recheck every three months, or whenever you receive notice of points about to expire.
How to earn more without spending more
The rule that applies to any program is simple: points only make sense if you were already going to make the purchase. Buying something to earn points almost always costs more than the value they return.
Within your budget, some actions help you accumulate more:
- Concentrate your monthly fixed expenses, like groceries, fuel and bills that accept card, on one card that earns points.
- Use the family additional card, if it earns points on the same account.
- Watch for transfer bonus campaigns, where the partner program gives extra points for a period.
- Shop at partner stores of loyalty programs, which sometimes give extra points per real spent.
All this only makes sense if you pay the full bill. One month of revolving interest already wipes out the value of many months of points.
Annual fee and points: do the math
Cards that give more points usually charge a higher annual fee. Before choosing a card because of points, compare the annual cost with what you'd actually earn.
A quick calculation: if you spend R$ 2,000 a month and the card earns about 400 points a month, that's 4,800 points a year. See how much those points are worth in bill discounts or airfare and compare with the annual fee. If the annual fee is higher, the points card doesn't pay off for your profile.
Many banks offer a discount or waive the annual fee for those who spend a minimum amount per month. Ask for this information in writing before accepting the card.
Watch out for scams involving points
Point balances attract scammers. It's common to get messages saying "your points expire today" with a link to redeem them, which leads to a fake page to steal your card details.
Check your balance only through the official app or by typing the website address directly into your browser. The bank won't ask for your password, security code or token via message to release points.
Selling miles to third parties also requires caution. Many programs prohibit the practice in their terms and may block the account of anyone caught doing it.