Points vs $
 

Moderators please move this to existing thread.

What is the best value according to FTers pure cash rebate from Costco Amex or Points/Miles?

I am spending around $100K on Costco Amex at the end of the year will get $1K hard cash.

Thanks for your input ^

Just as an example, I'd have to rate 100K SPG points (assuming you have the SPG Amex) as worth more than $1K, either using them for hotels, or to convert to 120K non-UA/CO airline miles.

I think mahasamatman meant 120k non-UA/CO airline miles. Every 20k SPG points transfer yields a 5k bonus.

Very good points on this, I don't have SPG Amex, time to sign up.

Thanks.

I think Azurik meant mahasamatman meant 125K.

+1

Take the cash if travel is not that important. Take the cash to reduce your debt! If other, I'd go for the points

Depends on what you'd use the points/miles for and how much that is worth to you. The real worth is no more than it would cost to buy whatever it is, but may be less.

Example: Two months ago I redeemed 200,000 AA miles for two round-trip business class tickets BOS-CDG. Economy tickets were over $650 each at the time. I probably would have paid about $1,500 each for the J tickets: way less than the published fare, but a good deal more than the economy fare. That made the miles worth 1.5¢ each, or very slightly less since I would have earned miles on a paid ticket. Since I don't know of a cash-back card that offers a rebate that high, taking the miles in that case worked out better.

Folks sometimes use the published fare to evaluate how much they got for their miles. As any economist will tell you, if you wouldn't pay it, it's irrelevant. Its major value in this context is to make people feel good about the great deal they got by using miles.

If SAAver award seats hadn't been available, I wouldn't have used 400,000 miles for that trip. We would have gone anyway, but in the small seats.

So: If you go for the miles, how will you use them? And what is that worth to you?

I'm in absolute agreement with Efrem's point, but:
Fidelity Investment Rewards American Express Card: 2% cash back (to a Fidelity account) on all purchases

Fidelity Investment Rewards Visa Card: 1.5% back on the first $15,000, then 2%

Cards like the Costco Amex or Amex Blue Cash can potentially earn 1.5% or more if a significant fraction of your spending is in higher-earning categories.

I'd use the SPG Amex and use it for hotel stays. Check out Ric Garrido's post from awhile back:


http://boardingarea.com/blogs/loyalt...points-awards/

Why does it have to be one or the other? I use the Costco American Express for restaurants and gas, for which it gets a 3% rebate. Right now I'm using my new Citi American Airlines for just about everything else, since I'm working on the 75k promotion. Other cards come out of the desk drawer when depending on the situation.

Miles are good, cash is good. I think I derive some benefit from diversification.

I agree. Although, technically, spending on one card is always at the cost of another,I try both. Used the schwab (now FIA) 2% card from February, finally setup the brokerage account last month and had $500 deposited. That $25K was general household spend including some home improvement projects. I try not to overwhelm my husband with a 100 different cards (he shakes his head everytime he sees a new cc or debit card come in the mail) so general household spend is always on the 2% card or SPG amex (for costco). I use other tricks to meet minimum spend and keep cards active but a general rule, I'd rather take $500 cash v. 25000 miles which would only get me domestic coach. Besides, with the type of run we've seen on cc and other promos, what's 25000 miles these days? That's easy to get via other means ;)

Fidelity AmEx/Visa also redeem to Aeroplan miles (Air Canada / Star Alliance)
 

The Fidelity AmEx and Visa also allow you to redeem on demand to Aeroplan miles. So, the AmEx earns 2 miles/$, and the Visa earns 1.5 mile/$. For more details, see my recent messages #7 and #14 in this thread: http://www.flyertalk.com/forum/other...nce-miles.html .

points plus cash is my choice

I've given up on most airline cards and just sticking with cashback. Hotel points are a different story. SPG ^

Can you give me some example of what you are saying please?

I'm becoming more of a fan of points-based programs, the latest fave being FlexPerks (the thing U.S. Bank did when the NW/DL merger left them without a mileage-granting card).

Pros with FlexPerks:

* each point worth up to 2 cents (20K = ticket up to $400, 30K = $600, etc.)
* no redemption/booking fees and you get $25 reimburseable allowance for airline junk fees, food, etc.
* a standing double-points offer on certain purchases and occasional promos to really boost the total.
* Free tickets count as paid tickets, so you can get upgrades and they earn miles (this is huge, especially for elites).

Cons:

* No cash + points option. You can't use the 20K for a $400 credit against a $500 ticket and pay the extra $100. You have to book entirely with points at 20K minimum, so chances are you're not getting full bang for your points. (You *could* redeem for a travel cert, but at a less generous 1 cent per point)
* Points expire 5 years from when they were earned, if not redeemed.
* Would seemingly be easier to devalue or otherwise "enhance."

Basically if you're a travel-shopping and deal hunting junkie and you love to travel and can plan it to maximize mileage return you can do very well with a points-based program, albeit at a real cost in research time (as always) to bag the deals.

You might bear in mind that had you actually paid for the tickets, you would have received the mileage flown (with at least 25% bonus for business class, perhaps double miles based on status) as well as credit card mileage and status mileage. So there is some value lost when use mileage for tickets that should be taken into account.

No need to remind me. I said that, in the second line from the end of paragraph 2. The miles I would have earned on a paid ticket, referred to there, include miles for flying and miles for paying. Compared to 200,000 miles for the awards, this is a small number.

I tend to use my points for hotel awards... for instance, 75,000 AAdvantage miles gets you 150,000 HHonors points, which is enough for a 4day stay at the Molino Stucky in Venice (where I'll be next week - a $1300 value), or the Cavalieri in Rome or any of the London properties, an even greater value. I can generally find a good airfare wherever I'm going and it's generally far less than what a top tier hotel stay would be, plus there's the benefit of earning miles.

Also, by using my HHonors Surpass card I earn 3, 6 or 9pts per dollar spent and with 20K spend during the year I maintain Gold status without having to pay for a single night.

I agree. There is always an opportunity cost in miles. Any SPG is worth 2c, as we can get 2% back from Fidelity Amex. But, if you have a citi that gives 75k for 750$ spend, then the Citi is worth 100% cash back! So use the Citi till 750$, then go back to SPG.

DL reserve is worth 3-5% in value for the first 60k. then it drops down You can get 5% cash back from other cards.
My rule is for 2% vs SPG - I go with SPG. For 3% I am not sure, but for 4-5%, go with the other card.
Lastly sign up promos and double promos are always good. Use them first.