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Best use of AMEX Membership Reward Points? 20% discount on using points for charges...

viche 1,602 237 March 1, 2016 at 12:55 PM in Services (2)
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I have some Amex membership rewards points that I'd like to spend.

Got an email from Amex stating:
Take advantage now! Use 20% fewer points for charges already made on your American Express Card (expires March 22, 2016).

Is that about as good as I can get value wise?

Thanks

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#2
Quote from viche View Post :
I have some Amex membership rewards points that I'd like to spend.

Got an email from Amex stating:
Take advantage now! Use 20% fewer points for charges already made on your American Express Card (expires March 22, 2016).

Is that about as good as I can get value wise?

Thanks
Poor value. Selling to a broker will give you best value if you are not booking a flight.
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#3
Quote from oumazdamx6 View Post :
Poor value. Selling to a broker will give you best value if you are not booking a flight.
Help me understand. Using it to pay off charges means I get 1.2 cents per point, no? Brokers are paying more than one cent per point?
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#4
R2C is currently 1.25 cpp for "on demand".

Also I believe "points for charges" does not value points at 1 cent. Admittedly I use AE infrequently but HAVE used points for charges and gotten no where near 1 cpp.

EDIT "You will only receive 0.6 cents per point with this option, so it's not a very good return [thepointsguy.com]."

So basically say you charge $60. That would usually be 10000 pts (60/.006), but your offer is giving it to you for 8000 pts (20% discount) so the points are really worth 0.75 cpp. By selling them you are getting ~ 66% better value.
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Last edited by Dr. J March 2, 2016 at 05:03 AM
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#5
Quote from Dr. J View Post :
R2C is currently 1.25 cpp for "on demand".

Also I believe "points for charges" does not value points at 1 cent. Admittedly I use AE infrequently but HAVE used points for charges and gotten no where near 1 cpp.

EDIT "You will only receive 0.6 cents per point with this option, so it's not a very good return [thepointsguy.com]."

So basically say you charge $60. That would usually be 10000 pts (60/.006), but your offer is giving it to you for 8000 pts (20% discount) so the points are really worth 0.75 cpp. By selling them you are getting ~ 66% better value.
Thanks for the info and reps. Didn't even realize there was a market for bonus points. I'll start reading that thread. Can you sum up any advice for me? Is this a relatively safe activity?

Oh, and can I sell any of these damn Sony points on my visa card? I have hundreds of thousands.
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#6
Quote from oumazdamx6 View Post :
Poor value. Selling to a broker will give you best value if you are not booking a flight.
Actually do need to book a flight. Can I beat 1.25 cents per point that I can get through a broker? Sorry I'm a little clueless about this.
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#7
Quote from viche View Post :
Actually do need to book a flight. Can I beat 1.25 cents per point that I can get through a broker? Sorry I'm a little clueless about this.

Generally speaking, points (regardless of program) have their best value when used for the program they were earned in - e.g. hotel points for hotel rooms, airline points for tickets, etc. Redeeming for trinkets is a sure way to waste points (e.g. buying ipads through a portal site that auto-debits points directly).

That same site I linked indicated they valued AE points, when used optimally (airline) @ 2 cpp.
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#8
Quote from Dr. J View Post :
Generally speaking, points (regardless of program) have their best value when used for the program they were earned in - e.g. hotel points for hotel rooms, airline points for tickets, etc. Redeeming for trinkets is a sure way to waste points (e.g. buying ipads through a portal site that auto-debits points directly).

That same site I linked indicated they valued AE points, when used optimally (airline) @ 2 cpp.
So I read that article, and I see examples that he gives, but I'm not sure how one would go about doing all of this. Is there a single website that shows you all of your travel options of point transfer options? I see you can book on the American Express Travel website, but according to that same website you gave me, AET almost always has higher prices than other travel sites. So how do people get the good deals?
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#9
Quote from viche View Post :
So I read that article, and I see examples that he gives, but I'm not sure how one would go about doing all of this. Is there a single website that shows you all of your travel options of point transfer options? I see you can book on the American Express Travel website, but according to that same website you gave me, AET almost always has higher prices than other travel sites. So how do people get the good deals?
Where are you trying to travel to and from?

Maybe start by looking at some travel credit card blogs like the one linked above.
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#10
Quote from bta15 View Post :
Where are you trying to travel to and from?

Maybe start by looking at some travel credit card blogs like the one linked above.
From Mid-Atlantic to Buffalo or Orlando, so not super exotic/expensive trips.
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#11
So I see that transferring the points into Avios seems to be the best usage of the points, especially when they run one of those insane transfer deals.

How often do these come up? Is it an annual thing?
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