Most American credit cards use the point system. One point is one cent. You accumulate points. Then you can use these points for things like booking flights, ho

Most American credit cards use the point system. One point is one cent. You accumulate points. Then you can use these points for things like booking flights, hotels, or buying gift cards or Apple products, etc. Let's say the cash back is 1% and you spend $1,000 last month. This month, you will receive 100 points. You can redeem this for $10. Most cards have programs where points are worth more if you use it for different things. For example, my credit card gives a 50% bonus when buying flights using the points. So the $10 is worth $15 if used for it.