We'll then explain how
we value the rewards rate of the Aviator version of the AAdvantage credit card, how to maximize value, and all of its other perks in more detail.
Consumers who
value rewards rate above all else, should always prefer the Citi ® Double Cash Credit Card to the SKYPASS Visa Signature card.
Not exact matches
Rewards value = (Spend in category 1 x
Rewards rate x Point
value) + (Spend in category 2 x
Rewards rate x Point
value), etc. + Sign - up bonus - Annual fee
However, as we noted above, if you have the Chase Sapphire Preferred ® Card as well, the effective
rewards rate on the Chase Freedom Unlimited ® can be higher than 2 %, provided you transfer your points and get a
value better than $ 0.0134 per point.
Say, the
value of your points is $ 0.01 and you get 2 points for every dollar spent, the
rewards rate is $ 0.01 x 2 = 2 %.
To calculate a card's
rewards rate, multiply the
value of the points / miles by the number of points / miles you get for a specific purchase.
Between the high
rewards rate on general spending, and the ability to transfer
rewards points to airline miles, there is a lot of good
value here.
While the opportunity for point
value is lower, cash back programs are simple and cardholders are guaranteed a predictable
rate of return from their credit card
rewards, without having to decipher loyalty programs or search for award availability.
Transferability boosts the
value of Ultimate
Reward points, and in turn raises the
rewards rate on the Chase Freedom Unlimited ®.
Judged purely on the
value of the
rewards you'll earn with the two credit cards you can expect a better than average
rewards rate..
The FlexPerks credit card offers a lot of opportunities to earn high -
value travel points, and the best use is when it's redeemed for airfare at over 150 airlines for up to a 4 %
rewards rate.
They have their own distinct personalities, with different annual fees,
rewards earning
rates,
rewards value, and even celebrity spokespersons.
By directly tying their business goal with a
reward that users highly
value (additional storage space), the company has hit the proverbial nail on its head, and sent product adoption
rates soaring.
In order to create a distinction between the
rewards rate we discussed earlier, and avoid confusion, we will refer to this value as the Adjusted Rewards Rate
rewards rate we discussed earlier, and avoid confusion, we will refer to this value as the Adjusted Rewards Rate (A
rate we discussed earlier, and avoid confusion, we will refer to this
value as the Adjusted
Rewards Rate
Rewards Rate (A
Rate (ARR).
The average point
value for the Wyndham
Rewards when used for hotel stays is around 1 cent per point, though your actual
rate can vary pretty wildly.
This card also gives you a 5 % rebate for all redeemed points, making the
value of the
rewards rate equal out to 2.1 points per dollar.
Judged purely on the
value of the
rewards you'll earn with the two credit cards you can expect a better than average
rewards rate..
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.
The FlexPerks credit card offers a lot of opportunities to earn high -
value travel points, and the best use is when it's redeemed for airfare at over 150 airlines for up to a 4 %
rewards rate.
Despite this first year promotional
rewards rate, the
value will not surpass most decent introductory bonuses from competing credit cards unless cardholders spend at least $ 1,000 per month.
For instance, if the
value of your points is 1 cent and you get 2 points for every dollar spent, the
rewards rate is $ 0.01 x 2 = 2 %.
We estimate the
value of each point to be 1 cent, which puts the Business Green
Rewards Card from American Express OPEN's rewards rate between 1 % a
Rewards Card from American Express OPEN's
rewards rate between 1 % a
rewards rate between 1 % and 2 %.
To calculate a card's
rewards rate, multiply the
value of the points or miles by the number of points or miles you get for a specific purchase.
One way to get a broad sense of the
value held within a credit card is to consider its
rewards rate.
The Chase Sapphire Reserve ℠'s
rewards and redemption
rates give it much greater earning potential and long - term
value than its sibling, especially when you factor in that $ 300 travel credit.
We
value TrueBlue points at $ 0.012, which gives this card a 7.2 %
rewards rate on JetBlue purchases, 2.4 % at grocery store and restaurants, and 1.2 % everywhere else.
Between the high
rewards rate on general spending, and the ability to transfer
rewards points to airline miles, there is a lot of good
value here.
It has the potential for one of the highest
rewards rates out of the top - tier travel credit cards, but users must redeem their ThankYou ® Points through the ThankYou ® Travel Center and give up some flexibility to get the best
value.
«Credit cards provide a lot of
value through initial
rewards bonuses and 0 percent financing deals, but they also offer $ 0 fraud liability guarantees, the lowest possible currency conversion
rates and even car rental insurance coverage,» said Jill Gonzalez, an analyst with CardHub.com, a credit card information site.
They have their own distinct personalities, with different annual fees,
rewards earning
rates,
rewards value, and even celebrity spokespersons.
Given we estimate the
value of a TrueBlue point to be $ 0.012, all of this translates to a
rewards rate that varies between roughly 1.3 % and 7.9 %.
Therefore, if we earn 1,000 points for spending $ 1,000, we earn back $ 10 worth of
value — or a 1 %
rewards rate.
Rewards are stated as «points / rewards rate» and based on 1 cent per point
Rewards are stated as «points /
rewards rate» and based on 1 cent per point
rewards rate» and based on 1 cent per point
value:
These options will leave you with a point
value well below $ 0.01, causing
rewards rates to drop below 1 %.
Remember that this is a solid way of redeeming your points, as you get a
value of $ 0.01 per point and
rewards rate of 2 % when doing so.
However, if you look at the face
rewards rate values, cash back credit cards tend to offer lower returns per purchase.
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 %.
While the highest
rewards category has a 3 %
rewards rate, cardholders receive a 25 % bonus on their points when the points are used to book travel through the ThankYou Travel Center — boosting the
value to 3.75 %.
It would take approximately $ 17,000 + in annual spending to make up for this $ 116 deficit in
value (assuming a $ 100 hotel stay, plus the $ 16 difference in annual fees), year - to - year - that is the point at which the 2.4 %
rewards rate of the SPG beats out the 1.5 %
rate users get from gas station, restaurant, and grocery spending.
The Capital One ® Spark ® Miles Select for Business's bonus, on the other hand, results in a
rewards rate of just 8.2 % (the total of $ 200 bonus miles and $ 45 miles
value divided by $ 3,000 spent).
Given that we
value each point at about $ 0.01, that puts the card's ultimate
rewards rate at anywhere between somewhere between 1 % and 1.3 %.
Criteria used:
Rewards rates, sign - up bonuses, redemption options, redemption flexibility, point
values, travel benefits, transfer partners, extra features,
rates and fees, customer service, security, credit needed
If you're a one - credit - card type of entrepreneur, a flat -
rate card like this will likely offer better long - term
value than a tiered
rewards card.
Otherwise, the
value of ThankYou points earned tanks this card's
reward rate below 1 %.
This results in a 1 %
rewards rate ($ 25
value / 5,000 miles x 2 miles per dollar spent), which is the most basic amount you'd get with most credit cards.
If you
value spending beyond travel to earn
rewards, the Sapphire offers a little more flexibility by offering competitive
rates for dining and restaurant purchases.
When used towards cash back, this can translate to a
rewards rate of 2 % - a relatively high
value when compared against most other offers.
For example, if the
value of a point is 1 cent and you receive 2 points for each dollar spent, the
rewards rate is $ 0.01 x 2 = 2 %.
Therefore, assuming a similar
rewards rates on both cards, the PenFed Power Cash Rewards will provide consumers with the better short - term value, and a bigger gross return on spending o
rewards rates on both cards, the PenFed Power Cash
Rewards will provide consumers with the better short - term value, and a bigger gross return on spending o
Rewards will provide consumers with the better short - term
value, and a bigger gross return on spending overall.
While this range may not seem too different compared to the SKYPASS credit card, we think it is far easier for the everyday consumer to reach the higher end of the
rewards rate spectrum with the Venture — this gives the Venture considerably more
value.