Using points vs using credit
 

Hello all! First time poster, so thanks in advance for the community! Any help is appreciated.

I have to book a flight from DEN to MGA (Nicaragua) departing 6/20 and returning 6/25. I found the cheapest way to do this was to book a separate ticket through DFW using a combination of AA and United.

These two round-trip flights combined would cost around $700 or around 45k in Chase UR points.

I signed up for the Chase Sapphire Reserve and have received the bonus 100k points, so that isn't an issue. The question is: would it be more valuable to keep the points for later and use them more wisely, or simply use them and save the $700 in cash?

If the answer depends on future travel, we do have a planned trip to Peru next year, but long story short, my wife and I are beginning to be a bit nomadic and might hike the AT next year and then spend a few months in South America before heading to Southeast Asia for a significant amount of time. That being said, none of it is planned yet nor a certainty at this point.

Thanks!

Only you can make that decision. The 100K pts are worth a fixed amount so it doesn't matter when you use them. I'm using airline miles & hotels pts first and will use my UR last, or for a condo in Hawaii.

Thanks for the reply. I guess the real question is, is getting 1.5 cents per point worth redeeming for, or is it better to try for more value?

I guess you're right though, that this is more likely a personal question than something with an objective answer.

Since you mentioned Southeast Asia, I usually transfer my UR points to Korean Air since their reward chart is actually quite nice. I prefer to get business or first class seats, which is a much better value than 1.5.

Do you plan to renew your CSR next year and pay the annual fee again? If not, do you have a plan to keep your UR points from expiring when you cancel your CSR card?

If our plans of traveling for the next couple years pans out then yes we will keep the CSR card. If not, I might downgrade it. However, I am also applying for the Chase Freedom Unlimited in order to maximize UR points for everyday purchases.

Typically I've always had cash back cards (Amex BCP 6% groceries, Penfed 5% gas, etc.) but if we travel like we are currently planning to then it makes sense to start piling up mileage as well I think.

Another question for you to consider - do you believe you can do better than 1.5?

Honestly, I think that is the essence of my question to the board.

Another consideration is total out of pocket costs. If my total trip expenses are manageable, then I'll pay out of pocket and save the points. If trip expenses are significant, I used points at 1.5 +/- to reduce the total out of pockets costs. Extracting more value per point would have been nice but without use of those points, the trip would not have occurred.

Actually, my question was a rhetorical question.

The value of points/miles is determined at the time when they are used. They are not futures or options you can really predict. Beside - points/miles have a destiny to devaluation. It is only a matter of when.

(This is the part you should never trust anyone who claim this values that...)

I asked you:

What I actually meant was can you use UR to book a trip that can worth close to 2. If yes, then it is not a good use. If not, you know what to do.

It's up to you to determine that versus asking us every time you're considering a trip/redemption. People tend to fixate on the advertised 1.5 cent/UR point value when redeeming via the UR portal but better value can be attained by transferring to travel partners especially for premium international travel. "Can" is the key word here. You have to look at fares that you'd consider and compare the point cost to cash cost. This means doing the research on what it would take to transfer (considering transfer rates, fees, etc) and what it would take to redeem with a specific carrier or carriers to compare. This is a basic skill that everyone has to have if playing the travel rewards game.

Al that said, 1.5 cents/UR is generally on the low end. However, if you can't leverage higher value redemptions and you're fine with that value then it may be worthwhile to you. Personally, I wouldn't use 45K UR points for a $700 fare unless I was in dire straits financially and just to make that specific flight.

Thanks for the great replies, I seriously appreciate it. I'll have to consider whether or not we can leverage these points in the near future for a better value and make them go a bit further. From your replies, it's clear this is a question of personal opportunities and finances but I definitely understand the parts in this equation more. Thanks again!

Also remember that *paying* with UR points means you have a *revenue* ticket, as Chase buys the ticket for you. This means you *do* get miles/points/elite credit by the terms of whatever airline it's on. Transferring UR points to a FF program, while potentially giving higher value if you can get a premium-cabin award ticket, means no program credit as it is then an *award* ticket.

Mostly true, but if you are buying an economy class ticket you typically cannot know the booking fare class and it may turn out to have been a bulk ticket which earns fewer miles than you expected.