See related: How to decide when to dump your rewards card for another, Determining
value of rewards redemption, Trips and traps of credit card rewards programs
But you have to take into account the opportunity cost of time
value of rewards redemption.
, Multi-airlines cards versus single - airline cards, Comparing value of cash back cards versus rewards, Determining
value of rewards redemption
Determining
value of rewards redemption — While typically not the best value for your rewards points, redeeming for merchandise can be handy when real «money» is more important in your pocket than any amount of miles or point... (See Merchandise vs. miles)
Not exact matches
Unfortunately for Membership
Rewards is that most other
redemption options (cash back, shopping or statement credits) reduce the
value of your points by 20 - 30 %.
There are two reasons for this: The
redemption rates
of miles or points for international trips drive up the
value of rewards, and most cash - back credit cards charge a foreign transaction fee
of 3 % on overseas purchases.
At a minimum desired
redemption of $ 0.02 per
reward point, you could get $ 1,100 or more in travel
value, depending on how you redeem!
Since the
rewards are in the form of cash back, businesses using the U.S. Bank Business Edge ™ Cash Rewards World Elite ™ MasterCard ® can enjoy greater freedom in how to use their credit card rewards - as opposed to, for example, the U.S. Bank Business Edge ™ Select Rewards Card which forces you into travel redemptions for the highest
rewards are in the form
of cash back, businesses using the U.S. Bank Business Edge ™ Cash
Rewards World Elite ™ MasterCard ® can enjoy greater freedom in how to use their credit card rewards - as opposed to, for example, the U.S. Bank Business Edge ™ Select Rewards Card which forces you into travel redemptions for the highest
Rewards World Elite ™ MasterCard ® can enjoy greater freedom in how to use their credit card
rewards - as opposed to, for example, the U.S. Bank Business Edge ™ Select Rewards Card which forces you into travel redemptions for the highest
rewards - as opposed to, for example, the U.S. Bank Business Edge ™ Select
Rewards Card which forces you into travel redemptions for the highest
Rewards Card which forces you into travel
redemptions for the highest
value.
Annual spending
of $ 13,000: Charging $ 13,000 a year on my Capital One ® Venture ®
Rewards Credit Card gets me 26,000 miles, or $ 260 in travel
redemption value.
While the Hilton HHonors ™ Card from Amex offers good looking benefits, the true
value of these
rewards is in hotel
redemptions.
Unfortunately for Membership
Rewards is that most other
redemption options (cash back, shopping or statement credits) reduce the
value of your points by 20 - 30 %.
This table lists several
redemptions that show the range
of values for the Propel World
rewards point.
Because the card's points have a straightforward
redemption value of $ 0.01 per point, this puts the Barclays
Rewards MasterCard ® rewards rate at anywhere between 1 % a
Rewards MasterCard ®
rewards rate at anywhere between 1 % a
rewards rate at anywhere between 1 % and 2 %.
Most importantly, you can transfer
rewards points to participating frequent travel programs at a ratio
of 1:1, and get some good
redemptions starting at a
value of $ 0.02 per point.
The Starwood Preferred Guest
Rewards Program has a number
of redemption options with varying
values.
The IHG Hotels
Rewards Club has a number
of redemption options with varying
values.
The beauty
of Chase Ultimate
Rewards that it balances flexible redemption options, with the opportunity for getting more value of your r
Rewards that it balances flexible
redemption options, with the opportunity for getting more
value of your
rewardsrewards.
The Marriott
Rewards program has a number
of redemption options with varying
values.
The Wyndham Hotels
Rewards program has a number
of redemption options with varying
values.
With this
reward, you can double the
value of an Avios
redemption.
Here's a quick summary
of what you can expect the
value of rewards to be given the different
redemption options.
Indeed, some
of them have such difficult
redemption policies, and there might be other costs, that significantly reduce the
value of your
rewards.
The Star One
Rewards program may be modified, suspended or cancelled, and the
redemption value of already accumulated points may be changed at any time without notice and without restriction or penalty.
Countries Visited: 31 Favorite First Class: Etihad Apartment (A380) Favorite Business Class: Singapore Airlines (777) Best
Redemption Value: BA Travel Together Ticket (First Class) Favorite Type
of Points: Chase Ultimate
Rewards Top 3 Cards in Wallet: Chase Sapphire Reserve ℠ Card, Chase Ink Business Preferred ℠ & Business Platinum ® Card from American Express
We can get those same tickets for 17,500 Ultimate
Reward Points, a
redemption value of $ 0.037 per point.
«We are pleased to bring our cardholders the superior
value, options and ease
of Ultimate
Rewards along with Flying Blue's expansive airline partner network to provide new
redemption opportunities for travel experiences throughout Europe and beyond,» said Lorraine Chow Hansen, General Manager
of Chase Ultimate
Rewards and Loyalty Solutions.
They also have more flexible
rewards redemption, so you can maximize the
value of your
rewards.
That's the equivalent
of 37,800 miles» worth
of rewards, assuming 100 miles have a
redemption value of $ 1.
Besides the direct
redemption options offered by the credit card issuer, a common way to maximize the per - point
value of rewards points is to transfer them to a partnering airline or hotel loyalty program.
One benefit
of your new Marriott
Rewards Premier Plus account is an Anniversary Free Night Award e-certificate every year after your account anniversary, valid for a one night hotel stay at a property with a
redemption level at or under 35,000 points, instead
of the category 1 - 4 hotel e-certificate
valued up to 20,000 points you received on your Marriott
Rewards account.
If you used just 7,500 points transferred to British Airways from your Chase Ultimate
Rewards portal for that flight instead
of paying $ 300, then your
redemption value is around 4 cents per point on that transaction.
The calculated
value of these points is based on an estimated
redemption rate, not a credit card
rewards earn rate.
The Hilton HHonors
Rewards program has a number
of redemption options with varying
values.
Of course, if you prefer one of these redemption options to the higher value rewards, feel free to redeem your ThankYou ® Points her
Of course, if you prefer one
of these redemption options to the higher value rewards, feel free to redeem your ThankYou ® Points her
of these
redemption options to the higher
value rewards, feel free to redeem your ThankYou ® Points here.
Nerd note: The calculated
value of these points is based on an estimated
redemption rate, not a credit card
rewards earn rate.
•
Value of Cash Rewards: Cash rewards have no cash value until such time as you may request and receive redemption (check or statement credit) for your eligible cash rew
Value of Cash
Rewards: Cash rewards have no cash value until such time as you may request and receive redemption (check or statement credit) for your eligible cash r
Rewards: Cash
rewards have no cash value until such time as you may request and receive redemption (check or statement credit) for your eligible cash r
rewards have no cash
value until such time as you may request and receive redemption (check or statement credit) for your eligible cash rew
value until such time as you may request and receive
redemption (check or statement credit) for your eligible cash
rewardsrewards.
After assuming you max out all signup bonuses and other
redemption rewards, and taking into account any annual fees, we calculated that the 2 - year total
value of each card is:
Investing the 10 - 20 minutes to figure out the
value of all your
redemption options can greatly influence how you use your
rewards for years to come.
As a matter
of fact, among the three major credit card
rewards programs — Chase Ultimate Rewards, American Express Membership Rewards and Citi ThankYou — Chase provides the best cash - back redemption
rewards programs — Chase Ultimate
Rewards, American Express Membership Rewards and Citi ThankYou — Chase provides the best cash - back redemption
Rewards, American Express Membership
Rewards and Citi ThankYou — Chase provides the best cash - back redemption
Rewards and Citi ThankYou — Chase provides the best cash - back
redemption value.
The
value of Membership
Rewards points will depend on the
redemption chosen.
If you're planning on redeeming your points, it's best to shop around the
Rewards Redemption Center to find rewards that value points at a minimum of one cent per point, which is a common value for credit card
Rewards Redemption Center to find
rewards that value points at a minimum of one cent per point, which is a common value for credit card
rewards that
value points at a minimum
of one cent per point, which is a common
value for credit card points.
USAA MasterCard Pros Low interest rate, no annual fee credit card 2,500 bonus sign up points Great suite
of supplemental and
value - added privileges in recognition
of military service Depending on
redemption type, consumers can earn
rewards of up to 1.25 % USAA... Read More
Those massive surcharges applied to mileage
redemption significantly reduce the
value of the
rewards.
Not only does redeeming your Ultimate
Rewards points for travel through Chase's portal gain you significant
value — up to 1.25 cents per point with the 25 % discount for travel
redemption — but you can often get even more pow for your point by transferring them to any
of Chase's 10 travel partners.
Because
of the high variability in their
value, the actual
rewards rate for credit cards using ThankYou ® Points may not be as lucrative if you're not willing to use them for their best
redemption options.
I think it is one
of the best cards for travel thanks to various
rewards partners, its outstanding points
values, and flexible
redemption options.
Countries Visited: 40 Favorite First Class: Cathay Pacific (777) Favorite Business Class: Cathay Pacific (777) Best
Redemption Value: 4 seats to the Galapagos flying JFK - PTY - UIO - GPS - UIO - PTY - BOS on Copa and Avianca (Ultimate
Rewards > United) Favorite Type
of Points: Amex Membership
Rewards Top 3 Cards in Wallet: The Platinum ® Card from American Express, Citi Prestige Card, Chase Ink Plus ®.
Redeeming
Rewards With no transfer partners, the Visa Black doesn't give you that many
redemption options, but it does make it easy to get double the
value of your points.
For
redemptions using cash - back cards, or for purchases outside
of travel
rewards, the
value is typically $ 0.01 per point.
The Bank
of America ® Premium
Rewards ® credit card is a new offering that should be on the radar for anyone who
values flexible points
redemption and extra perks for frequent travelers.