Lazy redemptions for credit card points

Every major transferable credit card points currency can be redeemed for at least 1¢ per point in value, so it’s generally a bad idea to redeem them for less if you can avoid it. Credit card companies will often tempt customers with convenient low-value redemptions, such as 0.6¢/pt when redeemed for Amazon purchases. On the flip-side, you can generally generate more value by transferring points to hotels or (especially) airlines. I used 34,000 Amex points to book two flights to Alaska last year that would have cost about $600 combined, so I received significantly more than 1¢/point by taking that route.

So, when comparing potential cards or figuring out how to use your points, it’s worth looking at what your options will be if you can’t (or are too lazy to) find high value options in transferring your points out to airlines or hotels, but don’t want to lose out by taking low-value redemptions. Here are each major credit card’s safe minimum values at or above 1¢/pt:

Amex: 1¢ when redeemed for air travel on the Amex travel portal.* 1.1 when transferred to Charles Schwab if you have the Schwab Platinum Card. (*I would value this at slightly less than 1.0 because you lose the convenience and flexibility of booking directly with the airline; Amex also doesn’t officially call this a fixed dollar equivalent value, but it seems to be the reliable conversion rate.) 

Bilt: 1.25 when redeemed for travel on the Bilt Rewards travel portal. (1.5 when used towards a down payment on a house, although that is a somewhat niche option.)

Capital One: 1.0 as a statement credit on travel or on the Capital One travel portal. (Note that you should always choose the statement credit, as you’ll still earn points on the spending.)

Chase: 1.5 (Sapphire Reserve) or 1.25 (Sapphire Preferred) for travel booked through the Chase travel portal or 1.0 as a statement credit (currently, there is a slgihtly higher rate for statement credits toward certain purchases thanks to Chase’s Pay Yourself Back program, but most bonuses are scheduled to end in June 2023). 

Citi: 1.0 as a statement credit or on the Citi travel portal. (Again, you should choose the statement credit.)

Chase is the clear winner here, offering both a strong travel portal redemption rate and the option of a statement credit, with Bilt’s strong travel portal bonus and Capital One and Citi’s convenient statement credit options also showing strongly. Amex is the weakest link, with only one option on its mainstream cards that even approaches 1¢/pt, and then only arguably. Of course, you can still get equally strong value with Amex points by transferring them to airline and hotel partners (like Delta and Marriott), which is not difficult once you get the hang of it. And while the Chase Sapphire cards have convenient redemptions, they may fall short in other areas. So while these values worth keeping in mind, they shouldn’t be the only factor driving your choice of credit card.