If you have ever been hit by analytical paralysis when making your decision, you are not alone. For me, this feeling is often shocking when I sit on credit card rewards and try to figure out how to use them wisely.
A few weeks ago, my balance was in mine American Express® Gold Card Staring at me from the Amex app on my phone.
I’m always happy to get a healthy supply of transferable points, but this can also lead to the pressure to find a “perfect” redemption worthy of my hard-working reward.
Unfortunately, points paralysis is still alive, so let’s talk about how to move to find perfection to make your trip more affordable and enjoyable.
Related: Credit Card Transfer Bonus this Month
Consider saving
The pursuit of perfection will usually disappoint you. Instead, aim for convenience and value.
Building a credit card reward is a good idea – to some extent. Saving points or miles for a specific redemption is one thing, but remember that devaluation can happen at any time, making points and miles a long-term investment.
I had to remind myself before I finally decided to use my Amex gold dot.
What prompted me to take action was the realization that I booked a series of one-way flights between New York, Seattle, Oahu and Philadelphia by using membership reward points to save over $500 to enjoy a weekend in Hawaii with my mom.
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Once I rethinked the idea of how to redeem my own opinions-I didn’t lose them, I used them to my advantage-the light bulb went on. I remember thinking: “Using these perspectives means saving out-of-pocket expenses. Of course, it makes sense to redeem them like this.”
My redemption for this trip is not a unicorn. I transferred 44,000 points to Virgin Atlantic Flight Club and paid $11.20 in taxes and fees to save about $400 for two one-way flights from Seattle-Tacoma International Airport (SEA) to Daniel K. Inouye International Airport (HNL). Still, they offer enough value to be good enough.
If I paid cash for these flights, I would confiscate most of my travel budget before I even hit the ground in Oahu.
Related: 12 Apps and Websites that Make Rewards Easy to Find
Different redemption strategies
TPG employees take different approaches to redeeming credit card rewards. Some mostly travel alone, while others disperse their rewards, their spouse and children.
Some then use a two-person strategy, where we recommend cards to partners or add them as authorized users so we can quickly earn points, miles and cash backs for a shared future redemption.
Related: Couples’ credit card strategies
Follow the budget
TPG Credit Card Editor Olivia Mittak tried to be between 1.5 and 2 cents per point when paying for the reward ticket.
“If it’s a flight that I can’t afford, I don’t object to my opinion that the ideal value is less. I think a lot of people are too eager to redeem luxury goods and the maximum value, which takes them out of the opportunity.”
Prioritize personal preferences
Often, TPG credit card writer Augusta Stone sees her redemption as an interesting “just” experience.
“I redeem Miles to visit friends when I want to; I don’t have to, but I think, so why not do it for free? When I go to work with my partner, the same thing applies. If he’s going to a cool place to cover the game, I can fly over the mileage, which is great, great.”
Prioritize advanced travel
When deciding whether to redeem or pay cash for air tickets, TPG credit card writer Danyal Ahmed first checks out possible redemptions and then transfers the cash fare.
“I compare the cash price to what I can pay with points. If the ticket to book a point is worth more than 3 cents, it’s a pass for me.” Still, he likes to book a premium cabin while flying.
“I will save my points or pool with my family trying to secure a first-class or business-grade seat. If the trip is last minute, or if I plan to do multiple trips and there is no shorter flight in business (or the point cost doesn’t make sense), then I will redeemed for the economy.”
Related: Credit Cards Helping to Encourage My Luxury Travel
Choose a quality accommodation
TPG Content Director Carly Helfand occasionally enjoys premium flights, but prefers to splurge on luxury.
“I absolutely love staying in fancy hotels and resorts, so I’ll get significant value by staying on some of the world’s top properties. It’s fun if I don’t completely remove my overall points balance, I’ll be flying at a advantage once or twice a year, which is fun, but it doesn’t matter to me, but it doesn’t matter to me.”
Try the maximum redemption value
TPG credit card writer Chris Nelson may get the most value at every point you get, and is usually not required for ongoing redemption, usually using only points.
“If the redemption value is low and the cash price is high, I will only use points for basic travel, such as helping family members get somewhere,” he said. Although he will shine with solid business-grade points fares, he usually sticks to the economy cabin, so he won’t run out of reward balances too quickly.
“I wouldn’t use points if the cash price is low, or if my flight gets at least 1.5 cents per point. For me, the hotel is a little different because I hate low redemption rates and would rather pay cash.”
Bottom line
Credit card rewards, whether earned in the form of points, miles or cash back, should be used. The exciting and exciting thing about finding unicorn redemption is that it is worth a few cents per point and puts you in a quality cabin or an amazing hotel suite – incredible. Remember, there is a reason these are called unicorns.
Don’t let points paralysis stop you from using credit card rewards to offset travel expenses and bring you memories on the go.
Related: Why is the best redemption sometimes the most practical
