The value of credit card points and miles is a common question among travelers. It is important to note that the value of these rewards can vary depending on the specific loyalty program, individual preferences, and travel goals. However, some rewards credit cards tend to offer more value than others. In this article, we will explore the factors that determine the worth of points and miles, as well as highlight some of the top rewards credit cards.
Historically, The Points Guy (TPG) has valued points and miles based on factors such as the price at which the miles are purchased, award costs in the program, and their own expertise in the loyalty programs. However, TPG now uses extensive data from the top six U.S. airline loyalty programs to estimate the value that travelers should aim to get from their rewards. This data-backed valuation methodology provides a more accurate representation of the worth of points and miles.
When it comes to airline miles, TPG’s valuation methodology takes into account factors such as award availability, fees, and the value of redemptions. The value of airline miles can also vary based on the airline alliance and partnerships, as these can open up more redemption options for travelers. For example, the recent announcement of Alaska Airlines acquiring Hawaiian Airlines and joining the Oneworld alliance could potentially provide more redemption options for travelers to Hawaii and beyond.
Hotel points also have their own value, which is determined by factors such as the brand, location, and the redemption options available. It is important for travelers to compare the value of hotel points across different loyalty programs to determine which ones offer the best redemption options for their travel needs.
In addition to understanding the value of points and miles, it is important for travelers to stay updated on the latest news and promotions in the loyalty program space. Ongoing transfer bonuses, where travelers can earn bonus points or miles when transferring them to partner programs, can provide additional value. Promotions for buying points or miles can also be lucrative, but travelers should carefully evaluate whether the offer is worth it before making a purchase.
Lastly, the article highlights some of the top rewards credit cards that offer great welcome bonuses. The Chase Sapphire Preferred Card, for example, offers a welcome bonus of 60,000 bonus points, which is worth $1,230 according to TPG’s valuation. The Capital One Venture X Rewards Credit Card and the Capital One Venture Rewards Credit Card also offer generous welcome bonuses. The Platinum Card from American Express and the American Express Gold Card are other popular options that offer valuable welcome bonuses and various travel benefits.
Overall, the value of credit card points and miles can vary depending on several factors. It is important for travelers to understand the valuation methodology used by experts, stay updated on the latest news and promotions, and choose rewards credit cards that offer the best value for their individual travel goals.