Using points for charges

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CarefulBuilder14
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Using points for charges

Postby CarefulBuilder14 » Sat Jul 26, 2014 10:29 pm

I've read a little about the 'pay with points' feature but don't totally understand it.

Can points be applied to charges on a 1MR=$0.01 basis? Another rate? Or it varies, depending on the charge?

I may end up just moving to an Everyday card, using it occasionally, and saving the MR points until I start flying more to get good value from them.
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Postby benhollberg » Sat Jul 26, 2014 11:26 pm

I wouldn't use pay with points, it's a bad value. I don't know exactly what it is but I know it is less than $.01 per point.
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Postby CarefulBuilder14 » Thu Aug 14, 2014 12:11 pm

It looks like 1 MR point = $0.006 when paying with points. So $100 of off-category spending gives 100 MR points, which works out of a cash back (statement credit) equivalent of $0.60 or 0.6%. Definitely a bad value.

Using points at Amazon gives 0.7%.

Gift cards would give about 1%, and the value from airline transfers will range immensely from case to case.
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PlyrStar93
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Postby PlyrStar93 » Thu Aug 14, 2014 12:48 pm

Using Membership Rewards points like "cash-back" can really be a bad deal. Only use this as a last resort. Better option is to transfer to various loyalty programs, though rate varies--most conversions are 1:1 basis but some programs can be more valuable than others.

For rate equal to 1%, redeem gift cards or book flight tickets on amextravel.com (you get less than 1% if you book hotels or rent cars; give credit to Million Mile Secrets, also this blog post).
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nismoZtuner
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Postby nismoZtuner » Thu Aug 14, 2014 1:04 pm

too late for me, if I would have thought it out i would have transferred my points to Marriott- worth way more than just 224-50 in cash :(
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CarefulBuilder14
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Postby CarefulBuilder14 » Thu Aug 14, 2014 1:43 pm

Even worse, if you use MR points to buy American Express Gift Cards, it's 0.5%! Normal gift cards are indeed 1%, though.
Wallet: Prestige CSP SchwabPlat Freedom It Hyatt SallieMae AAPlat
SD: Arrival BrooksBros BCE ED IHG
Letting new accounts cool off since May
Really not sure what I'll add next or when

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CarefulBuilder14
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Postby CarefulBuilder14 » Thu Aug 14, 2014 3:07 pm

Actually, a few normal retail gift cards even give less than $0.01 per MR point, but most give $0.01.

Glad my BCE will be arriving soon!
Wallet: Prestige CSP SchwabPlat Freedom It Hyatt SallieMae AAPlat
SD: Arrival BrooksBros BCE ED IHG
Letting new accounts cool off since May
Really not sure what I'll add next or when



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