Good points Q&A: What exactly is Rakuten?

Good Points is a series that’s all about making points easier for you!

It’s a place to learn short, to the point tips and tricks, an opportunity to dispel myths and teach you how to use your points wisely.

Thanks for being here, reading along and asking questions!

Here’s the fourth edition of Good Points!

Before we dive in, here are some point earning thoughts as you start to wrap up summer trips and plan for the rest of this year and beyond!

Tip: Don’t wait until you need the points to realize you don’t have enough of them.

Someone asked on IG if I spent nearly 10 million points to get the $145,000 in value I redeemed last year with points.

Umm…no. What are they missing?

Points are most efficiently earned through welcome bonuses!

Put $5K on a card over the next three months that you already have and you’ll get 5k points (better than nothing but not amazing).

Put $5K on a new card that earns a big welcome bonus on top of the points on your regular spending? Now you’re looking at tens of thousands or hundreds of thousands of points from ONE card.

That’s how it all works!

So, if you’re wondering why I am always talking about cards, they are the answer to the question - “how did you get $145K in value last year without spending 10 million dollars?” (lol that the person though I spent 10 million dollars and am still trucking along here trying to save on travel)!

The #1 card:

If you’re new here, this is the card you want if you don’t have it. Easy!

The everyday card:

This one has no annual fee and earns 50% more points than a typical 1x card. If you have another card by a similar name, you’re likely still eligible for this one!

The business card (and believe it or not, YOU likely qualify:

This one has an elevated bonus right now of 100,000 points. And the card has no annual fee! This is marketed a a cash back card but the rewards come to you as points that combine with the points from this card.

Note: Not trying to be vague! I have compliance rules I have to follow with the bank names and cards.

When you apply for cards it means the world to me when you use my links.

You can find them in the newsletters and on the website here anytime. Thank you for your support!

Today’s question came from the subscriber chat!

This is a great question and a good reminder that sometimes when I feel like I talk about something a ton, it’s good to bring it back around!

While welcome bonuses (the points you earn when you open a new card and reach the minimum spend required for said bonus) will almost always be the most efficient way to earn points, there are other ways to earn points for travel that work in addition.

Recently, I shared info about a new program called Paze which has some current elevated offerings and I talked about what a stack is — and why it matters.

To review:

What is a stack?

A stack is when you earn multiple rewards at the same time. You can read more about stacking here. It’s an opportunity to earn points on top of points (on top of points).

With a stack, you are spending the same amount but instead of earning one point per dollar (or whatever your card would have earned you) you have the opportunity to earn much more than that — in addition to your regular credit card points!

So, what is Rakuten?

Rakuten is a shopping portal. It’s a website (and app) that redirects you to stores you would have shopped at anyway.

When you click through and buy something, you have the opportunity to earn cash (or points) back on that purchase in addition to your credit card points (i.e. a stack!).

Is it spammy?

There is something innately spammy looking and sounding about this shopping portal. The graphics are a little (a lot) in your face, the name is hard to pronounce (ra·kuh·ten!), and it sometimes has deals and discounts that sound too good to be true. It’s also confusing to see “10% cash back” and understand how that translates to points back.

If you’ve been around here a while, you know I share the tips that I use to travel with points so you can too.

Stick with me on this one — it’s worth it!

I would not be able to take the trips my family takes without using a combination of welcome bonuses, Rakuten and other opportunities that help us earn as many points as possible on every dollar we spend.

How does Rakuten work?

1. Sign up for an account with Rakuten here using this link.

2. Click through the Rakuten website (or app) to make your first purchase.

3. Spend $50 in the first 90 days on something you would have bought anyway, and earn $50 back (or 5,000 points).

4. Each quarter, get a payout from Rakuten with your earnings from the last three months.

But it looks like cash back (aka 10% etc), where do I find the points?

• You get to choose what kind of rewards you’re earning! Cash OR points.

• If you’re earning cash back, 10% will be 10 cents on a dollar. If you’re earning points, it will be 10x points on a dollar.

• Transferable points are worth at least TWO cents per point. By switching to points back you’re potentially earning twice as much as you would have from earning cash back.

How to switch to points back?

1. Go to “Account Settings” on the Rakuten website.

2. Under “How you’re getting paid”, you have choices! You can select from various options including two that earn transferable points, or cash back.

3. Follow the steps to link your account and voila! You’re earning points!

   Note: if you switch to earning points from this bank, the transfer rate is 1:1 (good!). If you switch to earning points from this other bank, unless you have status with them, the transfer rate is 2:1 (not good).

Some Rakuten tips:

• The cash back/points back rates will fluctuate. A store can change from day to day and offer different cash/points back rates.

• The points earned are in addition to your credit card points.

• You can check out with ANY card to pay for your purchase. The points earned through Rakuten will come to you through how you select to get paid (see above). Your credit card you check out with has no bearing on that choice.

• Downloading the web browser extension is a seamless way to activate Rakuten while you’re shopping on your computer so you don’t have to click through the website or app. Don’t forget to click the logo (see it below — the blue R?):

  

  Make sure you click it to activate the “shopping trip”. Once it’s activated, you’ll see a little blue check mark in the logo (see below):

  

This seems like a lot (it’s not, I swear!). Show me how it’s worth it!

Ok, some examples with hypothetical cash/points back rates:

See how many more points you can earn by using Rakuten than just by waiting for the points to accrue from your credit card spend?

I don’t have a card that connects to Rakuten but I want to earn points. Help!

That’s what I’m here for. You know where to find me! I’ll help you figure out which direction to go.

Email/DM or reply below.

Is it worth it to use Rakuten if I am not earning points back?

Yes! It’s great to get cash back, of course! And you’re building a stacking habit which will benefit you for years to come. Perhaps one day you will have a card that connects. At that point, you might want to make the switch.

How do I sign up?

Click here! And don’t forget to spend that $50 in the first 90 days so you get the $50/5,000 points back.

Get it!

Happy shopping! Go get those points :) xo

In case you missed it, here are a handful of recent posts you might find interesting!

Thanks for being here!

xoxo