It’s no secret that travel rewards offer the most value when you trade them for travel expenses. Even when you’re not traveling, it’s best to save your points and miles for your next trip, whenever that happens.
However, there may be times when you want to consider other repayment options. Travel Rewards can be flexible and you can use them for checkout, gift cards or online purchases, among other things.
Read on to find out how you can maximize your travel rewards by trading them in for non-travel expenses.
Exchange for cash or issuance of loans
Travel Rewards usually lose most of their value when you exchange them for cash back or statement credits. However, when you need a quick cash flow, using this buyout option can be beneficial.
Take a look at the table below to see how much travel rewards on some of the most popular travel cards cost when you redeem them for statement credits.
Exchanging points for cashback with some issuers can also be convenient. For example, Chase allows you to transfer your Ultimate Rewards directly to your linked bank account, and you can initiate the transfer as soon as you have at least one point in your Chase account.
However, other issuers have minimum redemption levels. For example, you need at least 1,000 Amex points to redeem for cashback and statements. If you have 1,000 Citi ThankYou Points, you can also redeem them for statement credits, but you will need at least 5,000 points to receive cash rewards.
Exchange for gift cards
Another way to use travel rewards when you’re not traveling is to redeem them for gift cards. Again, the value is not great, but for some cards, this may be one of the best alternatives.
For example, this applies to Capital One Miles, which can be worth up to 1 cent per mile when redeemed for gift cards. Citi ThankYou Points are also worth 1 cent per point when you use them to purchase gift cards, making it the second best option after using them for travel. If you’re interested in redeeming for gift cards, it’s also a good idea to check out special offers and discounts.
Redemption for online purchases
Using online shopping rewards may seem convenient, but it doesn’t always make sense when you consider how much value you’re losing.
For example, you can use your Ultimate Rewards when you shop on Amazon at a rate of 0.8 cents per point. Given that the redemption rate for direct deposit or credit statement is between 1.25 and 1.5 cents per point, you’d be better off using direct deposit than spending it on Amazon or anywhere else.
However, when it comes to Amex, choosing to buy back online purchases instead of cash back or a credit statement may be your best bet. You can spend your membership rewards on select online purchases at a rate of 0.7 cents per point, including Amazon purchases, flight-free purchases on AmexTravel.com, and purchases at partner retailers such as Walmart, Best Buy, and more.
Since the ransom for the loan statement will earn you only 0.6 cents per point of value, shopping online may be a better choice. At the same time, you may be able to get a better deal by redeeming some gift cards, so be sure to explore your options before making a decision.
You can also keep an eye on limited time offers and targeted deals. For example, you can currently purchase Apple products with Ultimate Rewards with up to a 50% bonus, according to The Points Guy.
Making the Most of Travel Credits and Card Benefits from Home
In addition to redeeming your miles and points, you can take advantage of the annual credits that come with many premium cards. While most of these loans are for travel purchases, some of them cover purchases that you can enjoy from home.
Amex is especially good at this. The Platinum Card offers up to $15 in monthly Uber Credits (up to $20 in December) that you can use for Uber Eats. There is also a $100 annual Saks Fifth Avenue shopping credit to help you save on shopping from home ($50 from January to June and another $50 from July to December).
Amex Gold provides up to $120 per year in Meal Credits, which are provided in $10 increments each month. You can use credits at Grubhub, Seamless, The Cheesecake Factory, Ruth’s Chris Steak House, Boxed, and some Shake Shack locations.
if you have Business Platinum Card® from American Expressyou can receive up to $400 in billing each year from Dell, up to $360 with Indeed, up to $150 with Adobe, and up to $120 with a cordless phone purchase (registration required).
Also, as mentioned, a number of issuers provide time-limited benefits to cardholders, so keep an eye on your card offers.
bottom line
Exchanging travel rewards for anything other than travel expenses may not be the best option and your points and miles could lose much of their value.
However, if you don’t plan to travel for a while, it may make sense to explore alternative repayment options. They can offer cash flow when you need it or let you save on other expenses. Annual travel credits and some travel card benefits can also help you get the most out of your travel card even when you’re not traveling.
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