You Earned Your Rewards Points — Use Them However YOU Want

During the COVID-19 pandemic, I did something I never wanted to: my wife and I redeemed American Express, Capital One, and Chase points for cashback. (The horror, I know.)

What’s so awful about that? you might ask.

Award travel redemptions are almost always more lucrative than statement credit or cashback transferred to your bank account.

For example, 30,000 Chase points is worth $300 cashback or statement credit. Or you can transfer those points to an airline or hotel partner. Those 30,000 points — spending on what kind of award you find — can easily be worth more than $300. (Technically, points or miles aren’t your property. They belong to the respective loyalty programs.)

But when it came down to using points to pay credit card bills or draining our bank accounts, the choice was simple. We redeemed the points.

Do you know how many sleepless nights I’ve spent regretting that decision?

Zero. Not a single one.

But I Used to Be “That Guy”

I admit it. Years ago, I was maybe, sort of, kinda judgy when it came to how some people redeemed their points.

My dad once used Amex points to buy an iPod through Amazon. (That’s how far back we’re going.) I think one Amex point was worth, like, 60 cents.

“Dad!” I remember saying. “That’s a horrible redemption! Why didn’t you just pay cash? You could’ve gotten a better return with those points if you put them toward a trip! Even at a penny per point!”

“Because I have all these points and didn’t feel like paying cash,” he said. If I remember correctly, his tone was kind of like, Why do you care? The points aren’t yours, I’m happy with my purchase, and I’m your father, (goshdarnit).

Not long after I started blogging, a reader emailed me about something and brought up that they were redeeming SkyMiles for gift cards.

I told that person what a bad redemption that was and why they shouldn’t do that.

I was put in my place. And deservedly so.

Here was the gist: The points aren’t worth anything unless I use them. And Delta keeps devaluing their SkyMiles, so I might as well get something I’ll actually use.

I Forgot My Own Mantra!

I’m such a putz. Regular readers of this space know my philosophy:

Everyone’s travel goals, preferences, and budgets are unique.

I didn’t think to apply that to award point redemptions! Duh, Chris!

(Becoming a father and being out of work for a while puts things into perspective. At least, as much I can deduce.)

I should’ve known better then. But I do now.

It’s Subjective

Do I still think some redemptions (and earnings practices) are better than others? Of course!

I’m writing this post at a Starbucks. A young lady ahead of me in line used a debit card to pay for her coffee and breakfast sandwich.

That hurt my heart a little.

She could’ve used a Chase Freedom Unlimited®* or Chase Freedom Flex®*, both of which have $0 annual fees and earn 3% cashback (awarded as 3X Chase points). Then link her Starbucks Rewards account, where she can earn Stars toward free Starbucks items. She could even link her Delta SkyMiles profile and earn Double Stars when she goes to Starbucks on days she flies Delta. And earn also earn Double Stars when she reloads at least $25 to her Starbucks account.

Alas, no. But that’s OK!

Another example: let’s say a hotel room costs $130 cash or 21,000 points. (I know this varies by property and program but you get the gist.) You opt for the 21,000 points. That might be overspending the point value a little. You might get a more valuable redemption sometime in the future. On the other hand, using points keeps the $130 in your bank account. Again, there are some variables at play in this situation. But you get the point (no pun intended).

You can go on FlyerTalk, Reddit, Xitter, Facebook, blog comment sections, whatever, and ask people, “Is what I want to do good redemption?”

Be prepared for some brutally honest takes. If you want opinions, you’ll get them. But remember it’s up to you.

(By the way, if you have a bunch of points/miles and have an idea where you want to go but have no idea how to book your trip, get in touch with the point.me Concierge service. They’re like a travel agency for points and miles. It’s brilliant.)

René deLambert said something that, for me, provided a great visual about points and miles. It was something like this: Points and miles aren’t like a good red wine. They won’t age well or get better over time. So, burn them, my friends, burn them all!

(Note to René: have you considered starting a blog called TPA: The Points Arsonist?)

What do you think? Should people hoard their points because they’re scared of “bad redemptions”? Or spend them on things they actually want, even if the redemptions would infuriate points and miles hobbyists?

*(All information about theChase Freedom Unlimited® and Chase Freedom Flex® was collected independently by Eye of the Flyer. It was neither provided nor reviewed by the card issuer.)