I’m stocking up on credit card points

Last weekend I went out for a drink with my brother and started a discussion about who was planning to pay for the tab. I wish I could say it was because we are both very generous. Quite the opposite: we both wanted the point.

Of course, anyone who didn’t pay that night was planning on going to share with others. But we each have an American Express® Gold Card, so this is the card I recommended as he travels regularly and spends a considerable amount of money on food.

I knew I wouldn’t use the reward right away, so I ended up having him pay. I’ve been sitting in a healthy point balance that I wouldn’t intend to use until I travel to Iceland next year.

He boasted while we waited for his card to return.

“That much?” I sighed and did math. “It’s a trip of at least $2,000,” I said. “When was the last time you used it?”

It turns out he hadn’t used points since getting the card in 2023. “I didn’t have time to travel,” he wasn’t using it. Any A point in two years? It sounded ridiculous. What were the points to earn them?

Then I realized that it wasn’t that different. I’ve used my reward one time Despite scoring almost 180,000 points since 2023. It made me think: What is holding me back?

Why it doesn’t feel like the right time to use points

I’m a veteran reward card user, so I know a lot about earning points. But I’m still the first time I’ve actually redeemed them.

Maybe I worked so hard to optimize my rewarding strategy, so I tend to treat my point balance like a coveted treasure. After all, “points” and “miles” are not another way to say “money.”

Just like money, it’s only natural that I don’t want to waste points. Additionally, tracking points and miles redemption values ​​can be tiring. If you don’t have to worry about using a cashback card (or at least not having a wide range of potential value) and maximizing that value, it’s much more comfortable to redeem points. Again, if your points have a fixed value (such as 1 cent per point), it may not be worth earning cashback.

Advice to overcome redemption anxiety

You’d think my credit card knowledge gives me all the confidence I need to redeem my points regularly, but it just seems to have made me more worried about being “wrong” that.

But for my colleague, credit card writer and certified credit counselor Ryan Flanigan, knowledge is power.

The bankrate’s famous travel guru is a leading expert known for his binders filled with nearly 50 credit cards, and Ryan is always preparing for his next big trip. His strategies to find valuable transfer partners, redemptions and sign-up bonuses helped him visit Aurora, Australia and more.

I asked him to share insights on how he avoids redemption anxiety and decides to use his points and miles to book a trip. His advice surprised me, given the great rewards he had. Here are some of his tips.

“Make money and burn it”

“When points save money, use them,” says Ryan. “You don’t always get the ‘ideal’ redemption value, but if you can maintain more money in your bank account, it’s better. ”

Using the Bankrate Point Assessment Guide to know what points are worth is a great starting point, but Ryan says he shouldn’t emphasize getting the maximum. Instead, aim for a satisfying minimum. A good rule of thumb is to make sure that if your bank rate rates rate programs at least one cent, you’ll need to make sure that they’re at least worth it when redeeming those points.

“If you have a significant amount of points, there’s very little reason to pay cash unless the redemption has a really low rating,” says Ryan. While waiting for the perfect redemption opportunity is appealing, gaining high value in your points will definitely make you feel better about using them – that chance may never come.

“We don’t think about the points like money,” says Ryan. “You save money and invest and grow over time. When you save them, the points don’t grow. In fact, they can lose value quickly. Redemptions that provide great value can go away overnight.

I don’t think of points like money… my miles and points philosophy is burning with three simple words: earning.

– Ryan Flanigan
CCC, Bankrate Credit Card Writer

Everyone will maximize the point in a different way, Ryan says. So instead of feeling stressed at the best time to redeem your reward, you need to develop strategies based on your own travel needs.

I plan most of most trips a year ago, so even assuming low end redemption value, you can still get a general sense of the number of points you need to earn. When it’s time to book that trip, you’ll need to redeem your points. If you are getting your lowest redemption value for your points, there is rarely a benefit to waiting.

With this mindset, I can see my anxiety become more manageable. There’s no more what-if or second guess.

Evaluate the reward program

In addition to giving up on the idea of ​​”perfect” redemption and always getting the greatest value, Ryan advises me to think about whether I’m earning points on the right reward program or making the most of my reward.

After all, it makes sense to use them if you are earning points that don’t suit your travel needs or offering very low value to your desired redemption method. To overcome my redemption anxiety, I need to assess how well my rewards program is working for me.

Your preferred airline or hotel is an important factor to consider when choosing a reward card. You can earn points or miles with your preferred travel provider via co-branded airline reward cards or hotel reward cards, or you can choose a general travel card that will redeem your booking or reward points for transferring to them.

For example, if you frequently fly Delta Airlines, you may need a card like an American Express Gold card (which allows you to transfer points to Delta) or a co-branded Delta Skymiles card. If you fly southwest, chase may be more suitable for you. However, if you earn AADVantage miles, it will not be useful in either case.

If your card does not earn rewards or allow transfers in the Priority Program, that may be why you are struggling to find the preferred redemption option. If you notice that you have a lot of points and don’t seem to be able to redeem them, then they may not be the right thing for you.

You can see how simply knowing whether I’m earning the right points or not helps relieve my redness anxiety. In either case, the “earning and burning” philosophy makes sense.

If your rewards program fits, burn those points when you need them before continuing to earn. If not, focus on burning these points and earning points on a program that matches your goals.

Plan ahead

When I opened my travel card, I knew I could earn redemption value per 2 cent by transferring points to my travel partner, but I didn’t realize I was struggling to get that value.

Instead of getting as much value as possible, I was caught up in analytical paralysis. This allowed me to spend cash in place of my compensation. This could have been padding my savings and investments. On the other hand, I’m just sitting at those points so I’m not offsetting the cost of holding a travel card (that’s something I should aim to achieve each year).

If your travel card is worth the annual fee, you need a better strategy. Ryan says it starts with planning ahead.

You must start by adjusting your revenue and redemption strategies to your future travel plans. Thinking about my 2026 trip to Iceland, I don’t have to worry about getting paid. I’m saving nearly 200,000 membership reward points.

But once you burn these chunks of points, you need to think about what comes next. Which airlines will you use for your holidays this year, or what big trips are you planning for 2027? Once you understand these details, you will know which rewards you need to focus on earning, which rewards you will be able to obtain, and what redemption value you can get for them.

I’m mostly flying with a delta or aer lingus, so I probably stick to the Amex Gold card. However, if you plan a trip to the West Coast, you can open a Chay Travel Card, put most of that card in the first few months to win a welcome offer and get better redemption value on the Southwest Airline or Chay Travel.

This upfront plan has already helped me alleviate my redness anxiety. I can easily feel the rewards I need to earn, how much they are worth, the number I need for my trip, and when I need to use them. When it’s time to book a trip, you can confidently burn those points.

Conclusion

In search of perfect redemption, I did the opposite of what the reward card should help me – save money.

Going forward, he continues to maintain some of the philosophies that have built his reward strategy while taking Ryan’s “acquisition and burn” approach.

Instead of refraining from perfect ratings, I intend to maintain high expectations, but make them more realistic. Instead of giving away 2 cents per point, look for a redemption value of at least 1.5 cents per point. I’ve seen this rating several times in my travel studies, so I know that 2025 and 2026 will finally be the year when you’ll get cash at the point values ​​you’ve been sitting in for the past three years.

I would recommend it to anyone who has accumulated a mountain of points to consider Ryan’s advice. If you are in the same place as me, it may help you rethink your strategy and adjust your reward expectations. The right time to redeem may come sooner than you think.

Ryan Flanigan provided additional reports for this article.