Can you use the money from rewards credits to renew xbox live membership?

No. Gold can only be purchased via credit card/Paypal or by purchasing a prepaid gold card from a store.

Hey mate, I found this on the FAQ:

I renewed my Xbox Live Gold membership and I didn't get my Rewards Credits. Why?

Credits for renewing your Xbox Live Gold membership will appear on your MyRewards page within 2 days of your current Xbox Live Gold membership ending and the new one beginning. In addition, if you allow your Xbox Live Gold membership to expire before you
renew your Xbox Live Gold membership, you will be ineligible for this offer.

From here: http://rewards.xbox.com/faq/

His information is correct. It's per the terms and conditions of the offer -
rewards.xbox.com/terms-and-conditions

Renew 12-month Xbox Live Gold Membership: Available only to participants who are Xbox Live Gold members renewing their Xbox Live Gold membership as of the Program start date. Participants must be Xbox Live Gold members
at the time of renewal. Xbox Live Free members and Xbox Live Trial Gold members purchasing a membership are not eligible. Each 12-month Xbox Live Gold membership purchased during the Program Period will earn three thousand (3,000) Rewards Credits, up to a
maximum of three thousand (3,000) Rewards Credits during a twelve (12) month period. To renew your Xbox Live Gold membership,either redeem a Prepaid Live Gold membership, purchase a membership from your Xbox 360 or Xbox One console’s Dashboard,
or visithttp://www.xbox.com/en-US/Live/JoinLive/Membership during the Program Period.
Users of Prepaid Live Gold memberships will be credited upon actual renewal date, defined as the time the previous membership would have expired.

In order to get the credits, your current membership has to expire and the new membership will have to roll through. Then, you will receive the credits.

From the Rewards Page:

"Renewing your Gold membership, whether on Xbox One or Xbox 360, is a quick and easy way to earn up to 3,000 Rewards Credits. You'll earn Credits each time you renew your Gold membership, and if you sign up for a 12-month Gold membership, you'll get
all your Rewards Credits at once. Please note, you will receive your Credits once your current Gold membership ends and your new Gold membership kicks in."

Hi there,

If the two questions are related to the Live Rewards program (which they sound as though they are) then this does belong in the Live Rewards Forum here:

forums.xbox.com/.../29.aspx.

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Keep in mind the Rewards program is sponsored by Microsoft and managed by another company.
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For the 3,000 credits, per the FAQ for the Rewards program:

— When will I get my Rewards Credits?

A. Rewards Credits will automatically be converted into your local currency and deposited into your Microsoft account by the 15th and 30th of each month, once you hit 5,000 Credits. If you have less than 5,000 Credits, they will be held as Pending until
a quantity of 5,000 is reached.

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— I renewed my Xbox Live Gold membership and I didn't get my Rewards Credits. Why?

A. Credits for renewing your Xbox Live Gold membership will appear on your MyRewards page within 2 days of your current Xbox Live Gold membership ending and the new one beginning. In addition, if you allow your Xbox Live Gold membership to expire before
you renew your Xbox Live Gold membership, you will be ineligible for this offer.

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For the refer my friend:

— Why can't I refer some of my friends?

A. There are multiple reasons a friend may not be eligible for the Refer-a-Friend Reward. Your friend may already be an Xbox Live Gold member, or have recently acted on a referral and upgraded to Gold. Also, the Refer-a-Friend Reward may not be available
in your friend's region. Please see the Terms and Conditions for full details.

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Or is this about a different promotion?