The Case for Transferring Your Rakuten Points to Amex
Why You Should Consider Transferring Your Rakuten Points to Your Amex as Membership Rewards Instead of Getting a Cash Back Check from Rakuten
First, what is Rakuten?
Rakuten is a cashback program that allows users to earn points and cash back when shopping at various online retailers.
It is an easy way to earn money back on purchase you make online using a browser extension or mobile app. Full disclosure: I have never used the mobile app, only the browser extension. I am a millennial so I still make most of my purchases on the medium screen (i.e. my laptop), not the small screen (i.e. my phone). Buying anything but food is a medium screen activity because I am old.
So, why you should consider transferring your Rakuten points to Amex as Membership Rewards (MR) instead of getting a check back in the mail from Rakuten? In short, because Amex Membership Rewards points are worth more than one cent per point. Any redemption greater than one cent is going to be worth more than the cash back you receive from Rakuten (because it is simply cash back so one cent is worth one cent).
High value Amex MR redemptions can be worth about 2 cents per point, which is double the cash back value! If you are into travel rewards, you can redeem your MR points for far more value than the cash back you would receive from Rakuten instead.
Unless you are a big spender, you won’t be racking up welcome-bonus-level points on Rakuten, but it is an easy way to continually top off your Amex points without doing any extra spending.
In fact, you don’t even have to use your Amex card on your purchases to transfer your rewards from Rakuten to Amex.
I primarily shop online using my Chase Freedom Unlimited because it gives me 1.5% back on any purchase. I make sure to activate Rakuten whenever possible and then transfer any Rakuten points I receive to my Amex as MR points.
It’s an easy strategy that requires minimal work. Give it a try and let me know what you think!
If you are new to Rakuten, click here to receive $30 when you join and spend $30 on purchases (with Rakuten cash back activated) within 90 days of joining. Full disclosure, I receive $30 as well if you do this.
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