5 Best Ways To Use Points Or Miles
Updated April 15, 2024 at 11:26 am
Costs are rising in nearly all sectors, including travel. While travel costs dipped during the COVID-19 pandemic, prices have rebounded and now exceed previous levels.
As of 2022, all travel expenditures for out-of-town trips were 27% higher than 2019 levels, according to data from the Bureau of Labor Statistics (BLS). If you’re planning your next getaway, you can lower costs by redeeming the points and miles you rack up with your travel rewards card. But the redemption value of your rewards can vary and some options may be more favorable than others. Here are the five best ways to use your points or miles.
Our Methodology Understanding the value of cash back is simple, but valuing airline miles or points redeemable for travel requires digging a bit deeper. At Newsweek, we’ve developed a common language to talk about the value of points and miles: our valuations.
Our valuations translate points into dollars and cents in a way that reflects reality. They are based on actual data across a balance of accessible redemption options, not just the aspirational first and business class redemptions that require a PhD in miles and points to book. The upshot is that our valuations help you understand the actual value you can easily get from your miles and points.
Vault’s Viewpoint
- Travel costs have increased significantly over the past few years.
- Credit card travel rewards can help lower costs through savvy redemption options.
- The value of points or miles depends on many factors and some options are worth more than others.
1. Airfare
Booking a flight for your next trip is now more expensive than it was just a few years ago. Transportation costs for out-of-town trips rose 20% in 2022 compared to 2019, going from $849 to $1,022 allocated, according to BLS data.
To help offset high ticket costs, you can redeem points or miles from a travel rewards card to cover your airfare. Before you book your next flight, be sure to compare the redemption cost versus the cash price. In general, aim for a minimum of one cent per mile or point. But here are the two best ways to maximize your existing points and miles and get even more mileage out of them.
Book a Flight Through Your Credit Card Travel Portal
Credit card travel rewards can often be redeemed through your credit card’s travel portal. This can also be more valuable than other redemption methods.
For example, with the Chase Sapphire Preferred® Card, your points are worth 25% more when you book via Chase Travel.
Through the Chase Sapphire Reserve®, their premium credit card, that boost doubles. When Chase Ultimate Rewards are redeemed via Chase Travel, their value increases by 50%.
So if you have 10,000 Chase Ultimate Rewards points and redeem for travel through the Chase Travel portal, your rewards, by our math, are worth $125 with the Chase Sapphire Preferred® Card or $150 with the Chase Sapphire Reserve® Card.
Transfer Points and Miles to an Airline Partner
Some travel rewards cards give you the option to use their platform to book a flight or to transfer to an eligible airline partner. In some cases, transferring to an airline partner can yield better results.
Transferring points and miles can help you in several ways:
- Eligible bonuses. Airline partners may offer limited-time promotions or bonuses that can increase your miles or points. For example, you may receive a 25% bonus for transferring your points to a partner airline. So if you have 1,000 points, just by transferring you could have 1,250 points or miles.
- Lower award tickets. Every airline has different award brackets and you may be able to score a lower award ticket after transferring. In other words, you may be able to use fewer miles to book a flight when you use a partner airline and still have points or miles left over.
- Get closer to an award. You might have racked up a sizable number of miles on a specific airline but you’re just shy of being able to redeem them for an award flight. If you can transfer points or miles to that airline as a partner, it can help you get closer to an award flight or help you reach the minimum required to book your desired flight.
- Higher redemption value. If you transfer points or miles to an airline partner you could have a higher redemption value. To get the most out of the transfer, look into business and first-class tickets on international flights. While the cash price for these flights may be high, the cost in points or miles may be less than you think and the redemption value could be significantly higher.
2. Hotel Redemptions
While redeeming points and miles for a flight can save you money on your next trip, don’t ignore how much you might save with hotel redemptions.
For context, lodging for out-of-town trips saw the highest increase in travel expenditure categories, increasing 35% from 2019 to 2022, going from $619 to $837 allocated, according to BLS data.
Statista found that the average daily rate of hotels in the United States in 2022 was $148.83. Given that average, lodging for a one-week trip costs over a thousand dollars. Hotel stays can be a major weight on any travel budget. So redeeming free hotel stays is one of the best ways to use points or miles.
You can typically redeem your points or miles to book a hotel stay via your credit card’s portal. In other cases, similar to flights, you may be able to transfer points to eligible hotels. Just make sure that the points or miles you’re transferring have a minimum 1:1 redemption value, or else it’ll defeat the purpose. So if you have 1,000 points, after transferring you’ll have 1,000 points with the hotel.
The best part about redeeming points or miles for hotel stays is the flexibility. You can book a budget-friendly hotel, choose a location in a neighborhood you want or opt for a more luxurious experience. When you use points, some hotel partners may offer special bonuses like a free night after meeting minimum stay requirements or waive resort fees.
3. Peak-Season Travel
Peak-season travel refers to certain periods when travel is at its peak— the busiest times of year to fly. Summertime and any holidays are typically considered peak season and you can expect prices to be much higher compared to off-season travel. Why? Supply and demand.
Let’s say you want to spend the Fourth of July holiday in Paris. A roundtrip flight from New York to Paris from July 1 to July 8 is $900+. Changing dates to October 1 to October 8 results in a flight price of around $500. That $400 difference could go toward accommodations or other travel costs.
Booking peak-season travel is one of the best ways to use points or miles. Your redemption value may go further and can help you travel on a budget when flights are cost-prohibitive. So if you want to travel with your family during the summer when the kids are off or go visit your parents during the holidays, miles and points can put these in reach even if your bank account says otherwise.
4. Off-Peak Travel
Miles and points can save you money during the peak travel period. But you typically need fewer miles and points when you book off-peak travel. In other words, you may be within reach of an award ticket if you choose to fly off-peak. Plus, you’ll have miles or points left over for another trip.
I’ve booked roundtrip tickets to Rome and Madrid during the off-peak travel season for 45,000 American Airlines miles and taxes and fees. Granted, this was before the MileSAAver program was discontinued and dynamic pricing was implemented. While prices now can shift based on a variety of factors, you can see how traveling off-peak can save you miles.
At the time of writing, flying one-way from New York to Rome on April 15, 2024, would cost you 27,000 miles and taxes and fees.
To take the same flight roughly four months later in the heart of summer, you’ll need more than double the number of miles. Instead of paying 27,000 miles and taxes and fees, you’d pay 56,000 miles and taxes and fees—and that’s only one way. Put another way, you could travel round trip off-peak for fewer miles than one-way during peak season.
5. Pool Points and Miles Using Multiple Credit Cards
You may have points and miles scattered across various credit cards. In some cases, you may be able to consolidate your rewards. Combining travel rewards can help boost your balance so you can redeem for airfare, hotel stays and more.
Typically, you can do this if you have more than one card with the same credit card issuer. For example, Multiple Citi credit cards that offer ThankYou Points. And some Chase credit cards offer Chase Ultimate Rewards points.
You may be able to consolidate your points if they’re under the same issuer, typically in your credit card portal. Make sure you’re transferring your points to the card that has a higher redemption value. For example, transferring points from other Chase credit cards to your Chase Sapphire Preferred® Card or Chase Sapphire Reserve® could boost your per-point value.
Best Credit Cards To Earn and Redeem Points and Miles
There are so many rewards credit cards on the market, that it can be tough to choose which one is best for you. Consider your goals and travel habits.
- How often do you travel?
- Do you prioritize flying or booking the best hotels?
- Do you always check a bag or only use a carry-on?
Knowing the kind of traveler you are and what you want can help you identify a credit card that makes sense for your situation.
Here are the top options for credit card travel rewards broken down by different categories. It’s always a good idea to look into annual fees, annual percentage rates (APRs), welcome bonuses, spending minimums, perks and customer reviews.
Wells Fargo Autograph℠ Card
After spending $1,000 in purchases in the first 3 months
The Wells Fargo Autograph℠ Card has no annual fee with generous benefits in a wide range of categories. It also has no foreign transaction fees and multiple travel redemption options, making it an attractive choice.
Additional information:
Welcome bonus: 20,000 bonus points when you spend $1,000 in purchases in the first three months
Rewards:
- 3X points on purchases at restaurants, gas stations and electric vehicle charging stations, as well on travel, transit, select streaming services and phone plans
- 1X points on all other purchases
Citi Premier® Card
The Citi Premier® Card has a significant welcome bonus and major earning potential with a range of redemption options. The card has no foreign transaction fees and has a hotel benefit.
Additional information:
Welcome bonus: 60,000 points after spending $4,000 on purchases within the first three months of account opening
Rewards:
- 10X points on hotels and car rentals booked through ThankYou.com (through June 30, 2024)
- 3X points on restaurants, supermarkets, gas stations, air travel and hotels
- 1X points on other purchases
Chase Sapphire Reserve®
The Chase Sapphire Reserve® comes with an annual travel credit, complimentary airport lounge access, and elevated earnings for travel-related purchases. Plus, points are worth even more when redeeming through Chase Travel and can be transferred to other partners.
Additional information:
Welcome bonus: Earn 60,000 points after you spend $4,000 on purchases in the first three months from account opening (worth $900 toward travel when you redeem through Chase Travel)
Rewards:
- 10X points on hotels and car rentals when you purchase travel through Chase Travel*
- 10X points on Chase Dining purchases through Ultimate Rewards
- 5X points on flights when you purchase travel through Chase Travel*
- 3X points on other travel (not purchased through Chase)*
- 3X points on dining at restaurants, including eligible delivery services, takeout and dining out
- 1X points on other purchases
*Travel-related rewards kick in after the $300 annual travel credit is spent each year.
IHG One Rewards Premier Credit Card
The IHG One Rewards Premier Credit Card has compelling rewards like free nights, trip cancellation/interruption insurance, and purchase protection. The card has a generous point structure in a variety of categories.
Additional Information:
Welcome bonus: Earn 140,000 bonus points after spending $3,000 on purchases within three months of account opening
Rewards:
- Up to 26X total points on paid hotel stays with IHG Hotels and Resorts (10X points with this card, up to 10X points from IHG® for being an IHG One Rewards Member, up to 6X points from IHG® with Platinum Elite Status)
- 5X points on travel (excluding purchases made at hotels participating in IHG One Rewards that qualify for 10X points), at gas stations and restaurants
- 3X points on all other purchases
The 5 Worst Ways To Redeem Credit Card Rewards
Credit card travel rewards can be a fantastic way to book free or heavily discounted travel. While travel rewards on average are worth one cent per point or mile, with smart redemption options they can be worth much more.
On the other hand, the wrong move could devalue your points or miles, making them worth even less than one cent. Here are the five worst ways to redeem credit card rewards in our view.
- Shopping. Many credit card portals allow you to shop and purchase merchandise. While it can seem like you’re saving money by not paying cash, those points and miles could go further elsewhere.
- Gift cards. While you can use your miles and points for a gift card for your favorite retailer doesn’t mean you should. The value of your travel rewards may be less than one cent, making it a poor redemption option.
- Donations. You may be able to donate your miles or points to a charity and help a good cause. But if the value of your rewards falls below one cent, you’d likely be better off donating cash and using your points and miles on something that can get you more.
- Rental cars. If you need a rental car for your next vacation, using your points and miles can be enticing. Unfortunately, rental car redemptions may also offer lower value under one cent.
- Statement credits. Unlike cash back credit cards, some travel cards like the American Express® Gold Card offer redemption values below one cent when redeeming for statement credits.
How to Calculate the Value of Your Points or Miles
Before redeeming any travel rewards, calculate the value of the points. Ideally, you want the highest redemption value possible, but one cent is the minimum you should aim for. Anything less than that is likely not a good use of points or miles.
To calculate your points or miles, take the cash price of the flight or hotel and divide that by the number of miles or points required.
So if a roundtrip flight you’re looking at is $700 and would cost 54,000 miles, you’d divide 700 by 54,000.
700 / 54,000 = 0.0129
Take that sum and multiply it by 100 to get the per-point value. In this case, that would be 1.29 cents. In this case, it could be a solid redemption option but there may be better ones out there. The key is to calculate the value each time you want to use your points or miles.
If it’s below the one cent threshold you may want to hold on to your points and miles if possible or find a new redemption option that is more favorable. Review all of your options as there are some ways to use points or miles that are better than others.
Frequently Asked Questions
Which Card Is Best for International Travel?
If you’re traveling internationally, the best credit card to get is one without foreign transaction fees. These fees charge you a small percentage, typically between 1% and 3%, on any transactions made abroad. Some credit cards without foreign transaction fees include:
- Chase Sapphire Preferred® Card
- Chase Sapphire Reserve®
- Capital One Platinum Credit Card
- Wells Fargo Autograph℠ Card
What Credit Score Do I Need for a Travel Rewards Card?
Every credit card issuer has different eligibility recommendations. In general, to get a travel rewards card you’ll need what’s considered a good or excellent credit score. That means a credit score of at least 670 or above.
How Do I Keep My Air Miles From Expiring?
Some travel rewards may have an expiration date for miles. To avoid having your miles expire, you can use the miles, consider a credit card tied to an airline that resets the clock on expiration with purchases, or transfer the miles. Check with your credit card issuer on potential expiration dates and how you can keep your miles current.
Article Sources
At Newsweek Vault, our team of dedicated writers and editors are not just experts in their respective fields but also committed to delivering content that meets the highest standards of journalistic integrity. We analyze primary sources, including peer-reviewed studies, authoritative government sites and insights from leading industry professionals and ensure that every piece of information is researched, fact-checked and presented with accuracy and relevance.
- Consumer expenditures in 2022. U.S. Bureau of Labor Statistics. Accessed on April 10, 2024.
- Average daily rate of hotels in the United States from 2001 to 2022. Statista. Accessed on April 10, 2024.
Editorial Note: Opinions expressed here are author’s alone, not those of any bank, credit card issuer, hotel, airline or other entity. This content has not been reviewed, approved or otherwise endorsed by any of the entities included within the post. We may earn a commission from partner links on Newsweek, but commissions do not affect our editors’ opinions or evaluations.
