No. of Recommendations: 5
Are there any snares to avoid when it comes to converting "rewards" to an account credit? I found that one card has, if converted, $87.50 and another has $25. I'd like to lower my balance my that much if there is no "gotcha."

Some cards require you to convert a minimum amount, but with $25 for the smallest amount, you probably meet that.

Some cards allow you to purchase gift cards at a discount - buying a $50 gift card for $40, for instance. If your grocery store, or another retailer that you frequent for necessities has these cards available, it might be more effective to buy the gift card for $40, and then put the $50 that you would have spent (and had in your budget) toward the card instead. But if all they have are cards for places that you have stopped spending at (restaurants, for instance), then that's probably not a good option.

As danbobtx pointed out, be sure you understand the terms of the payment before you make it. Most card issuers don't allow the rewards payments to count towards your minimum payment, but if they do, be sure to take that into account when making payments if the card that the rewards are on isn't your high priority account.

Similarly, if the card company allows you to get the same payment if you transfer the money into a deposit account (checking or savings), and the account that the rewards are on isn't your high priority account, you would be better off transferring the money to the deposit account, and then using it to pay down your high priority card.

AJ
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