Why I Redeem Points for Just 1 Cent Each (And Don’t Feel Bad About It)

In the award travel community, there’s a lot of focus on maximizing points. This typically means using them for the highest value possible, measured in “cents per point.”

You can calculate this figure by comparing the cash cost to the number of points you use. Depending on the flight or hotel, you can easily redeem points for 3, 5, or 7 cents in value — or even more.

That’s awesome if it works for you. However, it doesn’t always work for my travels, and in some scenarios, I’m fine with redeeming my points at just 1 cent apiece in value. Here’s why.

Understanding the Different Types of Credit Card Points

There are 2 main types of credit card points: transferable points and fixed-value points. Some credit cards also earn cash-back, though we aren’t discussing those here. We also aren’t discussing rewards earned within a specific hotel or airline loyalty program, such as credit cards that earn Hilton Honors points.

Transferable points, sometimes called flexible points, provide options to send your points (transfer) to airline and hotel programs, letting you use whichever airline or hotel provides the best option for a trip you want to book. For example, Chase Ultimate Rewards lets you send points to programs like United Airlines MileagePlus, Air Canada Aeroplan, and Singapore Airlines KrisFlyer — all of which you can use to book trips on each other’s flights since those airlines are all in the Star Alliance together.

The smartest way to use these transferable points is to keep them in your account until you’re ready to use them. This preserves your options, and then you can cross-shop to see which transfer option makes the most sense. The value you’ll get from these points will vary, as you redeem them differently.

Fixed-value points, on the other hand, have a predetermined value. If you cash out your points or turn them into gift cards, your card issuer has a precise number for what your points are worth. While you can’t redeem your points for outsized value — which you can do with transferable points — the simplicity and ability to put cash-back in your pocket is nice.

How To Get Maximum Value From Your Points and Miles

Consider this short-notice flight, departing in less than a week from the time of writing. It’s a nonstop business-class flight from Houston (IAH) to Amsterdam (AMS) on KLM. You’ll pay $8,666 to book this flight. Ouch.

Alternatively, you could use 60,000 Flying Blue miles (the joint program of KLM and Air France) and pay $236.90 in cash. Saving over $8,000 using 60,000 miles provides an incredible 14 cents per point in value! That’s way over our average valuation of Flying Blue miles at 1.3 cents apiece.

Granted, most people (myself included) wouldn’t pay $8,666 for a one-way flight. And you don’t necessarily need to book last-minute trips or cross continents to get outsized value from your miles.

You can fly from San Francisco (SFO) to Lihue Airport (LIH) on the Hawaiian island of Kauai, paying 10,000 miles plus $5.60 if you book through Turkish Airlines’ Miles&Smiles program to fly nonstop on United Airlines.

This flight costs $244 per passenger, so you’re redeeming miles at 2.38 cents apiece — well above our average valuation of Turkish miles at 1.3 cents each.

Why Using Points for ‘Less Value’ Makes Sense for Me

If I can redeem points at multiple cents per point, why would I redeem points at 1 cent each?

The answer is flexibility. Not every flight can be booked by transferring my credit card points to an airline program. While there are plenty of transfer partners (you can see them all in our transfer partner calculator), many allow you to book flights both with the airline and its partners. The example above of sending points to Turkish Airlines’ mileage program and booking United Airlines is a great example of these options.

However, not every airline participates in these rewards programs. I can’t send my Chase Ultimate Rewards or Amex Membership Rewards points to any program for flights from South Africa to Madagascar with Airlink, the only carrier flying between the 2 countries. I also can’t use transfer partners to book low-cost airlines like Viva Aerobus or Volaris that operate between the U.S. and Mexico.

That same logic applies to sending points to U.S.-based low-cost carriers like Spirit and Avelo.

However, I can buy those flights with my points in a different way by using the points like cash. There are 2 ways to accomplish this: using a travel portal from your credit card issuer or redeeming points to reimburse yourself after you make a purchase.

Book Travel on a Credit Card Portal

The exact redemption value depends on the travel portal. For instance, using AmexTravel.com, the Wells Fargo Rewards portal, Citi Travel with Booking.com (Citi’s portal), or the Bank of America Travel Center, points are worth 1 cent each toward flights. Bilt Points are worth 1 cent each in the Bilt travel portal if you don’t have the Bilt Mastercard, but if you do, points are worth an elevated 1.25 cents each.

While you won’t find every low-cost airline in every travel portal, you’ll find some of them, depending on the portal you’re using. You can also use points to book boutique hotels that aren’t available using transfer partners from your credit card. This is especially important when traveling off the beaten path.

Cover Travel Purchases on Your Statement Credit

If you can’t find what you want to book, another option remains, and I’ve used it countless times: reimbursing yourself with points after making a travel purchase.

You can cash out points from numerous programs, and the value varies by card issuer and what type of purchase you’re offsetting with your rewards. However, some banks like Wells Fargo and Bank of America provide a solid 1-cent-per-point option to pay yourself back after making a travel purchase.

For example, I could redeem Capital One miles for qualifying travel purchases on my statement credit within 90 days of purchase:

I’m happy to mitigate my travel costs using points whenever the opportunity arises. Using points and miles to offset rental car purchases, flights I couldn’t reserve with points in advance, tours, and other expenses keeps my costs down.

Final Thoughts

There’s a lot of talk about using points for maximum value, and I get it. I do that quite often, redeeming points for 3+ cents per point apiece.

However, credit card transfer partners don’t cover every travel booking option. If I want to travel off the beaten path and keep my costs down, I’m happy to use points at 1 cent each, even if other ways to use points at more value exist. This redemption option allows me to go wherever I want, whenever I want.