Originally Posted by
pinniped
I don't disagree that the Schwab card is a good one - perhaps the best Visa/MC product out there - but the comparison to SPG Amex is a bit unfair. Converting Starpoints to air miles is a very poor use of Starpoints except in extreme cases. 1 Starpoint is conservatively worth 3-4 cents (typically more like 5-7 cents).
Plus, the beauty of Starpoints is that they are very usable. The lifespan of any given point in my account is rarely longer than a year. (That is, I earn them and burn them at approximately the same pace.)
Once I've fully cycled out of the Thank You Network I'll probably add the Schwab card as my Visa/MC backup to the two hotel Amexes.
I see what you are saying, but cost in this context is just doing the math. If I turn down 2 cents cash to get 1.25 airline miles, my cost of those miles is 1.6 cents each. If you turn down 2 cents cash to get a Starwood point, then your cost is 2 cents for each Starwood point.
Value is another matter and another thread, and as you note, and depends on usage. If your use amounts to 5-7 cents per point, that's great. I continuously check myself on mile values to avoid the errors often posted on FT in this regard, like thinking a C class free ticket to Europe is worth the $6,000 rack rate instead of the $3,100 op-up fare available most of the time.
Congrats too on using miles within a year. My stockpile goes back a lot longer, and that's another discount I apply to my valuation, especially compared to getting cash right now.