You’re looking for possibilities to redeem miles for more than one cent apiece.
It’s ideal if you can redeem your miles for two cents each mile. You’re in serious travel hacking territory if you can redeem them for three cents or more per mile.
This is one of the reasons why the Chase Sapphire Preferred® Card is so popular among those who collect miles. It provides a 25% redemption bonus if you redeem points for travel through Chase Ultimate Rewards®, increasing the value-per-mile to 1.25 cents (100,000 points become worth $1,250 instead of $1,000 when redeemed through Chase Ultimate Rewards®). The Chase Sapphire Preferred® Card, on the other hand, allows you to transfer points to certain frequent flyer and hotel programs in a 1:1 ratio. And that opens up a whole new world of possibilities.
What is the value of a frequent flyer mile?
While credit card miles are typically worth roughly a penny per mile, the value of frequent flyer miles varies greatly depending on how they are redeemed and the specific frequent flyer program in which you are enrolled.
The worth of frequent flyer miles varies. Can you get an award ticket worth $300 or more for 25,000 miles? Perhaps, but it won’t be simple. However, if you utilize your miles to travel internationally – or in first-class seats – credit card miles can be worth $0.05 or more per mile.
When redeemed for long-haul flights and business or first-class tickets, frequent flyer points are worth more per mile.
When are airline credit cards useful?
Despite the higher potential value-per-mile, credit card miles that can be spent on any airline may be more beneficial than airline-specific frequent flyer points unless you frequently and religiously fly one particular airline.
Airline-branded credit cards provide frequent flyer miles from that airline (for example, Delta SkyMiles American Express cards earn SkyMiles), but other travel reward credit cards award credit card miles that may be redeemed for flights on any airline, hotel stays, and more.
If you fly regularly on a single airline, holding the carrier’s branded credit card may make sense. The majority of the benefits of an airline credit card are not derived from the miles you earn, but rather from additional perks such as free checked luggage.
Boarding priority.
Faster ascension to elite level.
Credits for Global Entry/TSA precheck
For example, I travel Delta frequently enough that carrying a Delta SkyMiles Amex qualifies me for Gold Medallion status. That benefit entitles me to priority customer assistance and, on sometimes, a complimentary first-class upgrade.
The top credit cards for earning airline miles
Unless you’re a frequent traveler after elite status, a travel rewards credit card that gives you points that can be used on any airline is likely your best bet. Which credit card company you should choose is determined by the qualities that are most important to you.
Earning airline credit card miles has various advantages:
Airline Miles can be used as a statement credit toward any trip transaction (including airline tickets, hotels, rental cars, cruises, and so on).
There are no limits or ban dates.
Unlike many frequent flyer mile programs, you don’t have to accrue the points required for a whole ticket — you may redeem in amounts as low as $50 to offset your travel expenses.
Most credit card miles do not expire as long as your account is open and active. (Some frequent flyer miles will expire if you do not fly with that airline at least once a year.)
The good news is that you have several excellent options, the most of which provide significant sign-up bonuses of up to $625 if you spend a particular amount within a few months of joining up.
Summary
With a travel rewards credit card, you’ll earn credit card miles with each purchase, which you can then redeem for future travel expenditures made with that card. Credit card miles are normally worth one cent per mile when redeemed as a statement credit.
When you fly or use an airline’s branded credit card, you earn frequent flyer miles that must be redeemed when you purchase an award ticket on that airline or its partners. You have fewer options for redeeming frequent flyer points, but they can be worth considerably more than a penny each if you’re strategic.