Denice R. Preston
Credit Karma could aid you if you’re struggling to determine what the value of your rewards from credit cards is worth. Our experts on credit cards have crunched the numbers for some of the most popular reward programs to reveal how much miles and points could have been worth in cents and dollars. Note on Editorial: Intuit Credit Karma receives the cost of third-party advertising, but this does not affect the editorial opinions of our editors. Our third-party advertisers do not check, approve or endorse the editorial material we publish. The content is accurate to the greatest of our knowledge at the time it is it’s published.
It is helpful to consider the rewards from your credit card as money
If you’re looking for an upgrade to your credit card, you’ve likely seen the impressive sign-up or welcome bonus offers from top travel reward cards. You may see offers for 30,000, 4000, or even 50,000 points when you spend the equivalent of X dollars over X days. Although that sounds appealing, it begs to ask: “How much are those points or miles worth?”
It’s not always easy to determine. Like there is a difference in the value of the U.S. dollar is worth an amount different from other currencies like the British pound, Japanese yen, or Mexican peso, each reward program has its distinct worth. Just as the value of these currencies may change, so can the value of miles and points.
What’s a potential reward traveler supposed to be doing? That’s where we can help. The credit card professionals at our company analyzed the numbers for 21 of the most popular rewards programs to tell you the value of your miles and points could have worth in cents and dollars.
Credit Karma’s point valuations for Summer 2022
Note: The values in the table above are estimates and are subject to changes. Values for flexible reward programs show the highest redemption value when they are redeemed through the rewards program or the airline or hotel transfer partner we looked at. Values for rewards programs that are not flexible represent the highest value for redemption when redeeming them through the rewards program. Values for hotel and airline rewards programs are typical redemption values based on the most efficient redemption options. The value may differ based on the specific credit card(s) associated with the rewards program. Values are rounded to the closest cent. The values listed are to be used as guidelines. Refer to the terms and conditions or talk to the credit card company for more information.
A note on our calculated rewards values
The value of rewards is subject to change because they are subjective. The value you get out of one point or mile can be influenced by several variables, including the date you book, the location you’re headed, and the method you’ll use to arrive there.
We tried to make our calculations as fair as we could in our analysis. Credit card specialists from our team developed five distinct methods to evaluate hotels, and airlines, and train flexible and nonflexible rewards programs.
Airline reward programs
To determine the value of these frequent-flier miles, We compared the dollar price with the miles needed for booking sets of one-way flights.
We reviewed economy tickets that usually come with the most basic of amenities, such as having the option to choose your seats or carry luggage bags to carry on without paying additional.
Hotel rewards programs
To determine the value of hotel rewards, we compared costs in dollars with the number of points needed for booking a stay in a centrally-located hotel in the country’s biggest cities. Since hotel prices can fluctuate between weekends and weekday nights, we assessed the cost of both and then used the average to determine our cost per point.
Train reward programs
To determine the worth of train reward points, We compared the price in dollars with the points needed to purchase one-way domestic train journeys. This closely mirrors the process we employed to calculate the value of points for the various reward programs for hotels and airlines mentioned above.
Flexible reward programs
Generally, points earned through flexible reward programs are considered more valuable than points earned from nonflexible rewards programs. This is because flexible schedules let you exchange points with a range of hotel and airline partners, and some might offer higher redemption value. For instance, you might be able to increase the worth of Chase Ultimate Rewards(r) points by making the transfer them to United MileagePlus(r), which is, on average higher than redeeming them via Chase.
We determined the highest value you can earn from the points you make in such programs by taking a look at the amount you’ll get from redeeming your issues via the rewards program offered by the card against the value you can earn by transferring your points to airlines and hotels that we evaluated.
The general rule is that whether a reward program on the card or the transfer partner has a better points value depends on the particular case. It’s contingent on the dates of your travel and the transfer partner. Therefore, we suggest researching to ensure you’re getting the most value for your money.
What happens if I don’t want to move my earned points?
If you’d like to use your points in the same rewards program through which you have earned them, here’s how much they could be worth depending on the credit card you are using for the program and the method you’ll use to redeem the points.
Rewards programs that are not flexible
We also reviewed a nonflexible rewards program that we have looked at: the Bank of America(r) rewards.
Nonflexible cards earn their names because they require the cardholder to redeem their points and miles using the rewards program of the card. It means you cannot transfer points to a reward program for hotels or airlines.
We focused on the most lucrative redemption options in determining the value of a mile or point. Usually, it’s cash back or credit on your travel statement. In some instances, other options for redemption may give you more rewards bucks.
How do you determine your reward value?
It is essential to know that the worth of your rewards is contingent on the method you use to redeem them. To get the most precise measurement, it is recommended to calculate based on the time, place, and method you’d like to spend your reward.
To calculate your rewards value, divide the amount you’d be paying in USD for a specific reward by the number of miles or points required to redeem. This calculation will give you the amount per point you will receive for that reward.
Bottom line
Knowing the value of points and miles can be worth will help you choose which credit card you should apply to when the time is right. It can also assist you in figuring out how to make the most use of the credit cards you currently have, putting you a step closer to that vacation you’ve always dreamed of.
“But wait!” you might think. “How do I know I’m getting the best possible deal?”
You can utilize Credit Karma’s point-value estimates to serve as a benchmark. Begin by comparing the point value you estimate for a specific train, hotel, or flight against our findings to determine if you’re getting the best price.
