The Good and Bad of Buying Points and Miles

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Buying points and miles can be a strategic way to access premium travel experiences or complete specific awards. However, it should be done with careful consideration, especially during promotional periods, to ensure it’s a cost-effective choice. Travelers should weigh the pros and cons and evaluate whether the purchase aligns with their travel goals and financial situation. Let’s break it down and talk about the good and not-so-good sides of buying points and miles, so you can decide if it’s right for you.

Pros of Buying Points and Miles:

1. Meet Credit Card Bonus Requirements: Buying points can help fulfill spending requirements on travel rewards credit cards, allowing you to earn valuable welcome bonuses.
2. Complete Specific Awards: If you’re just a few points or miles short of a specific award, buying the necessary amount can be cost-effective compared to paying for the entire trip with cash.
3. Immediate Access to Rewards: Buying points and miles provides an immediate infusion of reward currency into your account, allowing you to book flights or hotel stays without waiting to earn them through regular travel.
4. Unlock High-End Travel: Purchased points and miles can help travelers access high-end experiences they might not afford with cash, such as premium cabin flights and luxury hotel stays.
5. Promotional Offers: Airlines and hotel loyalty programs often run promotions and discounts on purchased points or miles, which can significantly increase their value and make it more cost-effective.

Cons of Buying Points and Miles:

1. Cost: Purchased points or miles are not free. Travelers need to spend real money to acquire them, and sometimes, the cost can outweigh the value of the rewards they provide.
2. Devaluation Risk: Loyalty programs can change their award charts and devalue points and miles. Buying points without a specific redemption in mind leaves you open to potential devaluations.
3. Credit Card Options: Travel rewards credit cards often offer ways to earn points and miles through regular spending, making it more cost-effective than buying them outright.
4. Limited Flexibility: Purchased points and miles are often tied to a specific loyalty program, limiting your flexibility to explore different airlines or hotels. Cash provides more versatility.
5. Promotion Timing: It’s important to buy points or miles during promotions to maximize their value. If you miss a promotional period, the cost-effectiveness may decrease.

Choosing the Ideal Credit Card:

When it comes to optimizing your loyalty program, choosing the right credit card is absolutely crucial. Look for cards that not only offer generous rewards for your everyday expenses but also typically grant you double points for every dollar you spend. For instance, credit cards such as Citi Double Cash or Barclay’s Arrival Plus or Capital One Venture Card can be used to purchase points on points.com. This way, you can essentially double your rewards, making your loyalty program even more satisfying and lucrative.

In some cases, certain loyalty programs allow you to buy points directly, and these purchases can count as airfare spending. If you’re considering purchasing miles or points through American AAdvantage, it’s worth noting that such transactions are classified as airfare spending. This means you can earn bonus points on your purchase by using one of the following cards that offer additional rewards for airfare spending:

• The Platinum Card® from American Express: This card allows you to earn 5x Membership Rewards points for every dollar spent directly with airlines or through Amex Travel, up to $500,000 in purchases per calendar year. After reaching this limit, you’ll continue to earn 1x point per dollar.
• American Express® Gold Card: With this card, you can earn 3x Membership Rewards points for every dollar spent directly with airlines.
• Chase Sapphire Reserve®: This card offers 3x Ultimate Rewards points for each dollar spent on airfare.
• Citi Premier® Card: When using this card, you can collect 3x ThankYou points for every dollar spent on airfare.
• Chase Sapphire Preferred® Card: This card provides 2x Ultimate Rewards points for each dollar spent on airfare.

By selecting the right credit card for your mileage purchase, you can maximize your rewards and elevate your loyalty program experience.

In a Nutshell

Buying miles and points isn’t always the most cost-effective strategy, as airlines and hotels often charge more per unit than their redemption value. To make it worthwhile, it’s essential to seize the moments when loyalty programs offer discounted rates. Additionally, by selecting the right credit card for your mileage purchase, you can maximize your rewards and enhance your loyalty program experience. So, if you’re eager to make the most of your travel experiences without straining your budget, here are the latest points and miles promotions to take into account.

Disclaimer: This article is neither sponsored nor paid, and I am not affiliated with any of the mentioned programs at the time of writing.