Use factors and miles to offer items with zero out-of-pocket value

Every vacation season, some shoppers discover that they haven’t any extra cash for items. If you happen to’re on this state of affairs, you may put your vacation purchases on a 0% curiosity bank card if you recognize you’ll be able to pay the costs off in the course of the introductory interval.

Nevertheless, when you have factors or miles tucked away in your loyalty accounts, a greater possibility than taking over debt could also be to redeem your rewards for items. In any case, these rewards can function a lifeline and allow you to put a bit magic underneath the tree throughout troublesome instances.

At TPG, we get questions on utilizing factors and miles for items every vacation season. Many readers aren’t fascinated by giving the reward of journey; as a substitute, they wish to give extra conventional items like toys and reward playing cards.

For instance, TPG’s senior director of content material, Summer time Hull, acquired this message from one in every of her Instagram followers: “Do any rewards applications let you use factors for plain Visa reward playing cards … [?] I misplaced my job and am searching for a technique to make the most of rewards for Christmas giving to children.”

We usually do not suggest redeeming factors and miles for nontravel redemptions since you may normally get a better worth whenever you redeem for journey. Nevertheless, that math means nothing if cashing in some factors for nontravel items can put smiles in your family members’ faces in the course of the holidays.

If it is advisable to redeem factors for some presents this 12 months, listed here are a few of the greatest methods to perform that purpose.

Redeem factors for reward playing cards

There are two major methods to make use of reward playing cards bought with factors and miles as vacation items.

One possibility is to redeem your factors or miles for reward playing cards to retailers like Goal or Finest Purchase. Then, you should use these reward playing cards to buy items at these shops.

The opposite possibility is to offer the reward card because the reward itself. Nevertheless, some applications solely mail bodily reward playing cards to your property handle. Meaning you’d must cross the reward card on to your supposed recipient as soon as it arrives at your handle. Different applications provide solely digital reward playing cards.

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As you may see beneath, some applications present a greater return on your factors than others. If you wish to redeem your factors or miles for reward playing cards, listed here are some choices to contemplate:

• American Categorical Membership Rewards: Redeem at a fee of 0.7 to 1 cent per level for merchant-specific reward playing cards and 0.5 cents per level for American Categorical reward playing cards
• Capital One miles: Redeem at a fee of 0.8 cents per mile
• Selection Privileges: Redeem at a fee of 0.31 cents per level
• Citi ThankYou Rewards: Redeem at a fee of 1 cent per level
• Chase Final Rewards: Redeem at a fee of 1 cent per level
• IHG One Rewards: Redeem at a fee of 0.17 to 0.2 cents per level
• Marriott Bonvoy: Redeem at a fee of 0.4 cents per level for Marriott reward playing cards and 0.2 to 0.39 cents per level for different reward playing cards
• Southwest Speedy Rewards (solely Speedy Rewards cardholders): Redeem at a fee of 0.33 to 0.67 cents per level
• United MileagePlus: Redeem at a fee of 0.3 cents per mile
• Wyndham Rewards: Redeem at a fee of 0.33 to 1.14 cents per level

Packages could sometimes provide gross sales that allow you to redeem fewer rewards for choose reward playing cards. However, out of all of the choices mentioned above, solely American Categorical Membership Rewards and Selection Privileges let you redeem factors for reward playing cards that are not merchant-specific.

The reader who wrote to Summer time would possibly take into account redeeming Amex Membership Rewards factors for Amex reward playing cards at 0.5 cents per level. Nevertheless, as you may see in a subsequent part, redeeming Membership Rewards factors for an announcement credit score at 0.6 cents per level can be a greater possibility if flexibility is required. In any other case, the reader might stand up to 1 cent per level by redeeming for choose retailer-specific reward playing cards.

Associated: The do’s and don’ts on how you can maximize your vacation purchases

Store with factors and miles

Some applications additionally let you redeem factors and miles for merchandise. Listed here are some choices to buy vacation items utilizing factors and miles:

• American Categorical Membership Rewards: Pay with factors at checkout when buying with numerous retailers (together with Amazon, Finest Purchase, Dell, Grubhub, Newegg, PayPal, Ceremony Help, Saks Fifth Avenue, Seamless and Staples) at a fee of 0.7 cents per level
• Bilt Rewards: Pay with Bilt Factors on Amazon at a fee of 0.7 cents per level; redeem factors for merchandise, Bilt Dwelling Assortment gadgets or Bilt Dwelling Design Assortment gadgets
• Capital One miles: Use miles for purchases at Amazon and PayPal
• Chase Final Rewards: Store for Apple merchandise via the Apple Final Rewards Retailer at a fee of 1 cent per level, or pay with factors at Amazon or PayPal at a fee of 0.8 cents per level
• Citi ThankYou Rewards: Use factors for purchases at 1-800-Flowers, Amazon, Finest Purchase, bp/Amaco, CVS, Greenback Common, Big Eagle, Murphy USA, PayPal, Schnucks, Shell, Walgreens and Walmart through the use of your Citi ThankYou card to pay after which deciding on “Sure” when the checkout display screen asks whether or not you’d prefer to redeem factors (there are buy minimums and a few gadgets are excluded)
• Delta SkyMiles: Use miles for magazines via MagsForMiles or you’ll be able to bid or buy distinctive actions via SkyMiles Experiences
• IHG One Rewards: Store for merchandise utilizing your factors via the IHG catalog, or use factors to purchase choose video games, software program, motion pictures, e-books, e-magazines and e-newspapers via IHG digital rewards
• Marriott Bonvoy: Store for merchandise utilizing your factors at Marriott Bonvoy Store with Factors
• Southwest Speedy Rewards (solely Speedy Rewards cardholders): Store for merchandise utilizing your factors at Southwest Speedy Rewards Extra Rewards
• United MileagePlus: Store for merchandise utilizing your miles at MileagePlus Merchandise Awards, redeem miles for Apple merchandise or redeem miles for {a magazine} or newspaper subscription
• Wyndham Rewards: Store for merchandise, subscriptions and memberships utilizing your factors within the Wyndham Rewards on-line factors catalog

Earlier than redeeming for merchandise, test whether or not your order could have delivery prices and take into account the delivery timeline. In any case, you do not wish to use your factors and miles for vacation purchases and never get the reward in time.

Associated: 7 methods to redeem American Categorical Membership Rewards factors for vacation items

Redeem for money rewards

Lastly, you’ll be able to redeem factors and miles in some applications for assertion credit or cash-back rewards. Listed here are your choices with a few of the hottest applications:

• American Categorical Membership Rewards: 0.6 cents per level for assertion credit
• Bilt Rewards: 0.55 cents per level for assertion credit
• Capital One miles: 1 cent per mile for an announcement credit score to cowl journey purchases within the final 90 days or 0.5 cents per mile for different assertion credit or a test to your handle
• Chase Final Rewards: 1 to 1.5 cents per level (relying on which card you maintain and the acquisition class) via Chase’s Pay Your self Again characteristic for an announcement credit score to cowl purchases throughout the final 90 days; you may also get 1 cent per level for cash-back rewards to your checking or financial savings account
• Citi ThankYou Rewards: 1 cent per level for cash-back rewards, together with an announcement credit score, direct deposit or test by mail

If in case you have an eligible Chase card and have prices already in your card which are eligible for Chase’s Pay Your self Again characteristic, you may reimburse your self for these purchases and use the cash to purchase vacation items.

Associated: 3 issues to contemplate on your vacation buying bank card technique

Backside line

On paper, redeeming factors or miles for vacation items will present much less worth than redeeming for journey. Nevertheless, if you do not have additional spending cash this vacation season, cashing in your factors or miles could also be one of the simplest ways to purchase items. If you happen to go that route, take into account which of the above strategies will present the most effective worth for the rewards you might have and the items you wish to give.