Worth the Miles? A Practical Guide to Travel Rewards Cards

The average value varies by program and redemption method. For many travel cards, points are worth about 1 cent each when redeemed for cash back or statement credits. However, transferring points to airline and hotel partners can sometimes yield more—like 2.5 cents per point on certain hotel bookings. There’s no single average, so always check the value for your specific redemption.

Travel cards can be better if you’re willing to put in the effort to learn transfer partners and book award travel. They can offer higher value per dollar spent, especially for flights and hotels. But cashback cards give you simple, flexible rewards with no annual fees or point valuations to worry about. The best choice depends on your travel habits and whether you pay your balance in full. If you carry a balance, the interest charges will likely outweigh any rewards.

Some programs expire points after a period of inactivity, while others have no expiration policy. For example, some credit card rewards never expire as long as your account is open, while other programs might deactivate points if there’s no earning or redeeming activity. Check your card’s terms to see if there’s an expiration policy, and consider making small purchases periodically to keep your account active if needed.

Yes, many travel rewards cards allow you to transfer points to a list of airline and hotel loyalty partners, often at a 1:1 ratio. This can open up award availability and sometimes give you more value than booking through the issuer’s portal. For example, Chase Ultimate Rewards can transfer to partners like United, Southwest, and Hyatt, while Capital One miles can transfer to over 15 partners. Transfer options vary by issuer, so check the card’s benefits guide.