Maximize points and miles to beat inflation and save money

Editor’s Note: This is a recurring post, regularly updated with new information and offers.

With inflation hitting record levels recently coupled with the uncertainty we’ve experienced over the past two and a half years, many people may be wondering what to do with their points and mileage.

At TPG, we strive to get the most out of our trips by leveraging our points and mileage. However, we know this may not be true for everyone. With tough economic times, there are some exceptions to where your points and mileage can go.

You may want to get some rewards for essential household expenses while on a tighter budget than usual. That’s the great thing about flexibility – you have options. Many rewards programs offer non-travel rewards that are both practical and well-deserved for your points.

Here are some ways to make the most of your points if you’re not traveling.

Exchange for statement credits or cash back

We generally recommend that you don’t redeem your points for statement credits or cash back, as that type of redemption typically only gives you 0.6-1 cents worth of points per point. However, we also know that the current recession has affected many people who could benefit from using their points to cover daily expenses or pay bills.

Whether it’s a utility bill or groceries, you can redeem your reward points for a statement credit to pay for essential purchases. Here’s the value you typically get by cashing points for statement credits:

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With Chase, you can also link your Ultimate Rewards account to a bank account and choose to cash out 1 cent per point. This option is great if you want extra cash or need to use cash to pay your rent or another similar bill that doesn’t usually go to a charge.

Remember that there are minimum redemptions if you plan to use points for statement credits or refunds:

• Rewards for American Express members: 1,000 points.
• Chase the ultimate reward: 1 point.
• Citi Thank You points: 1,000 points for statement credits; 5,000 points for cash rewards.

In the case of Citi, a credit statement can take up to two billing cycles to be posted. If you choose checks, checks are only valid for 180 days, so be sure to cash them as soon as they arrive.

In 2020, Chase introduced a redemption option called Give it back to yourself offers higher redemption rates when you use points to pay for gas, grocery and home improvement purchases: 1.5 cents per point for Sapphire reserves and 1.25 cents per point for Sapphire reserves Sapphire Preferred cardholders. Chase has expand categories – Airbnb, dining, as well as internet, cable and phone services – until the end of September 2022.

Using Chase’s Pay Yourself Back feature will not result in a maximum value for your Ultimate Rewards points. However, if you are looking for a simple return, it can be a good choice.

Related reading: The Ultimate Guide to Amex Pay with Points

As travel returns to normal, we’re seeing people add car rentals to their vacations again. If you have a earning card refunds or Transferable rewardsyou can redeem your rewards for car rental, depending on the car rental program.

Nearly every rewards program allows you to redeem points for book rental car. This can be a practical use even if you only plan to stay with loved ones who have more space. Renting a car can actually be a great use of points, depending on redemption.

Chase Sapphire Reserve cardholders receive 1.5 cents worth of each pass point Chase Travel Website car rental. It’s the same amount you get when you use Chase’s travel portal to book flights or hotels, which is a fair value. Chase Sapphire Preferred Cardholders receive 1.5 cents worth of each point.

Sometimes American Express runs targeted promotions to redeem points at Amazon. These included save $40 by redeeming just 1 point Membership Rewards. You can use deals like these to stock up on household essentials or even art supplies for the kids.

In addition to these promotions, you can get about 0.7 cents per Membership Rewards Point at Amazon.com. Using Chase Ultimate Rewards points, you will get a similar value at Amazon, lower than if you just cashed out.

Neither of these are a great option other than promotions as you can do better just by exchanging them for cash and buying what you need.

Related reading: Best credit cards for Amazon purchases

Apple

If you need a new iPad, MacBook, or other Apple device, you can redeem your Chase Ultimate Rewards points online for 1 cent each purchase on Apple.com.

Goods

While not a great value, Amex offers the ability to shop through their website for barter. You can get anything from kitchen and dining accessories to home decor and appliances. For certain items, there are even merchandise discounts compared to the normal exchange rate.

If you need new kitchenware for home-cooked meals or new toys to keep the kids busy, you can redeem your points for these instead of digging into your wallet. Sometimes, Membership Rewards offer 30% discount on merchandise exchange. You can get anything from home decor to kitchen appliances at a discount to your regular redemption rate.

If you have a warehouse IHG Rewards Club Points you’re looking to burn, take a look at them Online Directory. Like Amex, IHG offers a wide range of products that you can redeem for as little as 1,000 points.

Digital Downloads

TPG IHG point value at 0.5 cents each, so personally I wouldn’t exchange points for merchandise unless absolutely necessary. I will say that I used my points for digital rewards before. Starting from just 200 points, you can download popular movies, music, e-books, games and software.

Related reading: The best credit cards for streaming services

Chase Final reward periodically discount when redeeming gift cards. Currently, Ultimate Rewards points are worth 1 cent per gift card, although you can get 10% off gift cards from Subway, Wayfair, Banana Republic, Ulta and more, lifting your redemption rate to the north 1 coin each card.

Citi ThankYou also allows you to redeem points for multiple gift cards at the rate of 1 cent per point. You can earn 2,500 points on $25 gift cards from sellers like Target, Sears, Staples, etc. These are great places to stock up on household items and work supplies from home if That’s what you need most right now.

We’ve recently seen 10% off several gift cards from Citi – including Chili’s, Happy (valid at locations like Panera and Burger King), Wayfair and more. This means that a $25 gift card will cost 2,250 points instead of 2,500 points. If you shop with these sellers often or plan to make purchases, gift cards can be a good way to redeem points while saving money.

American Express also offers a wide selection of merchant gift cards, although redemption rates are not always high. For example, a $50 Sam’s Club or Walmart gift card will set you back 7,143 Amex Membership Rewards points, significantly less than 1% per point.

Occasionally, Amex runs promotions on certain gift cards. Amex is currently running a 25% off promotion on select gift cards. That means you can get a $50 Saks Fifth Avenue or Pottery Barn gift card for just 3,750 points, instead of the standard 5,000.

With that being said, I wouldn’t trade my Amex points for anything less than 1 cent per point, but the option is there.

If you want to unload some points (to keep them from expiring or because you’re feeling generous), consider giving them away. Nearly every rewards program allows you to donate points to a worthy cause, often at the rate of 1 cent per point. This includes Citi Thank You program, IHG Rewards Club and more.

Through JustGiving, American Express allows cardholders to donate points to more than 1.5 million nonprofit organizations. Your American Express points won’t expire as long as you have a credit card account open, but if you want a way to pay it back, here’s one way to do so.

Given the current state of the economy, a lot of people have shifted their priorities away from tourism and refocus their reward strategies and look for other ways to redeem points. Many are facing tough economic realities, and redeeming points for travel may not be a priority for a while.

While points and miles are often much more valuable when booking travel, you’re better off using them than letting them sit and lose their potential value. In the end, they are your points and you should redeem them for anything you want or need. If that means you have to cash out the points you want to get a Target gift card for grocery shopping, use it.

If you regularly convert points into cash equivalents, it may well be time to switch cashback credit card in this time. The Citi® Double Cash Card is a great option, as it offers 2% cashback (1% when you buy and 1% when you pay off the balance). You can redeem these rewards for cash back or convert them to points Thank Citi, and for a limited time, you can earn $200 in cash after spending $1,500 on purchases in the first six months of account opening with the Citi Double Cash Card.

Chase Freedom Unlimited is another great choice, offering 1.5% cashback on purchases. You can choose to cash back or pair the card with Chase the Ultimate Rewards card exchange points for future travel rewards of higher value.

These cashback cards are useful options if you are unsure about how your rewards will be used in the future and want some flexibility for redemption and a nice return on your spending.

Additional reporting by Ehsan Haque.