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Bad is not uncommon to receive notification of your awarded credit card, which seems like great news. Speaking of all the announcements that offer new cardholders and supposedly exciting ways to redeem their points and miles, such as for merchandise, event tickets or other impressions.
But too often these messages don’t reveal how many points or miles they need to redeem, which can tell you what value you will get from the rewards. And I constantly remind people how you redeem our rewards is at least as important as earning them first.
Those who do math often realize that these partnerships provide a very good way to redeem their profitability.
Redemption should be avoided
Here are some examples of new ways to redeem your rewards, but definitely not worth it:
Chase and Talk
Chase recently announced an “extended relationship” with Tock, a booking platform that allows you to book, and sometimes prepay, high-end classes. At first glance, redemption of Ultimate Rewards® points for these dishes could potentially be a good deal for participants Chase Sapphire, Liberty and Ink.
But when I tied my own Chase Sapphire Reserve® to my Tock account and tried to overpay for food, I was informed that my 79,015 points for Ultimate Rewards® are worth only $ 632.12 as credits on Tock’s purchase statement. Only when I break out my calculator do I realize that it only gets 0.8 percent of the value for the purchased item.
To do this in the long run Chase Sapphire Reserve® Cardholders can always redeem their points at 1.5 cents by booking Chase trips, and could potentially cost more if they are transferred to an airline or hotel with Chase travel partners. If I wanted to gain a dining experience at Tock, I would be much better off purchasing Chase Ultimate Rewards® points for just 1 center as cash back and then earning a booking on my card – ending up 25% more cash than if I used the Redemption Tock.
Fortunately, a Chase spokesperson informs me that in the coming months, Chase will be integrating the Tock booking platform into Ultimate Rewards® through a new special Ultimate Rewards® dining tab. This will allow cardholders to access the Chase Private Dining series, and hopefully provide better value for the redeemed item.
Amazon store with glasses
Thanks to not avoiding Amazon, the largest online store. But even though you can use the rewards of your credit card to make a purchase, you definitely shouldn’t. Amazon Partners s American Express membership awards,, Chase Ultimate Rewards® and Citi ThanksYou pointsbut it offers terrible value for the redeemed item. Each of your Citi ThankYou and Chase Ultimate Rewards® points receives 0.8 quintals and only 0.7 percent of the American Express award.
Instead, all of these reward points cost a minimum of 1 cent if they are redeemed for a refund or many other options, and most likely when transferred to an airline or hotel. Only Discover Cards offer you Amazon Reward Parity; you get a $ 1 credit from Amazon for every dollar of cash returned from your Discover card.
Awards of goods from United and others
The idea of buying glasses and miles for merchandise may seem interesting, especially if the traction of the gadget saves close to your reach. For example, here are the Bose QC35 Series II noise-canceling wireless headphones installed by United for 51,800 miles. But because these headphones typically sell for $ 349.95, they earn only 0.68 percent per mile. To make this promising, you can often book two return tickets at that price (which usually costs about twice as much as headphones).
In fact, virtually any airline and hotel program that offers rewards for merchandise gives you only a fraction of the cost you can get if you strategically redeem your miles for reward flights or your hotel points for a free night.
A nice exception
Hyatt and Lindblad
In 2019, Hyatt announced Fr. partnership with Lindblad expeditions which offers voyages on small ships to some exotic and hard to reach places. I was immediately skeptical when it became known that guests could redeem World of Hyatt points for these trips, but I was pleasantly surprised to find that these award-winning points cost a healthy 1.6 cents. In fact, World of Hyatt members also receive special benefits, including $ 250 on board for booking, and at night on board the ship is considered elite-level status, both of which enjoy your items.
How to find out if you are getting good prices from points or miles
Finding the value of points and miles brings it hard, but you need to do a little more work. First, find out the value of the award. If you are selling merchandise, booking trips or tickets to events, find out how much it will cost if you paid in cash. This allows you to take into account available discounts or the ability to deliver a budget carrier to its destination.
Then just divide the value of the reward in dollars by the number of points or miles required, which will tell you the number of cents per point or miles it gets. To put it into perspective, you can compare it NerdWallet estimates and miles.
But keep in mind that all valuations are valuations, and it’s okay to buy back profits a little less than you should, especially if you have a large balance sheet that you don’t use. You just want to redeem your rewards for much less than they are worth, and definitely no less than the amount of money you could redeem.
But usually when it comes to ransoming your profits, this is not always the case. If a company offers you a seemingly great way to redeem your rewards, but gives you only a fraction of their actual value, just move on. There are many fantastic ways to maximize the value of points and miles without running the latest big ads.
How to maximize your rewards
You want to travel with a credit card that prioritizes the ones that matter most to you. Here are our choices for the best road credit cards of 2020, including the best for: