Did I Just Commit a Cardinal Sin When it Comes to Collecting Miles and Points?

When it comes to miles and points you’ll read about a particular mindset a lot. That mindset basically centers around the idea that the ONLY way to use your miles and points is for travel. If you use them for anything else, you’re ‘doing it wrong.’

Don’t fall into that trap. Mathematically, of course, using your miles and points for travel-related purchases will get you the most bang for your buck. And that’s, of course, good! You want that. 

However, there’s a better way to use your points. To anyone who asks, I always say the best use of your points is how YOU want to use them. For example, I prefer using them for travel-related purchases to get the most out of my miles and points. 

But what happens if, on the off chance that this ever happens, there’s a global pandemic caused by a virus that kills hundreds of thousands of people, puts countries all over the world on lock down, and restricts your ability to travel indefinitely? ​

A global pandemic?

I mean, that kind of thing will never happen, but let’s say it does (haha…ha...ha…). Should you hold onto the hundreds of thousands of miles and points you’ve earned to - hopefully one day - use them for travel? Or do you use them for gift card purchases or use them to buy things on sites like Amazon that you know you’ll need or use now?  ​

The case for using them for travel

After all, when the restrictions and lockdowns are lifted, people will want to travel again. Being cooped up tends to make people antsy to get out and about. Overall, there are several reasons waiting to use the points for travel makes sense:

• There will be a lot of availability. Let’s face it: Just like how there is a sect of people (understandably) who are weary about going out for a bite to eat - there will also be many who don’t want to find themselves shoved onto a plane like sardines - regardless of whether masks are being worn or not. 

 

• Prices will probably be cheaper - meaning you’ll have more options. 
  • For one, you may not need as many points when you make a purchase. This would be true if you’re using Chase UR points to purchase tickets/hotel stays in lieu of cash.  
  • Another option: You’ll be able to use points for whatever is the most expensive (hotel or flight). If, for example, you find a roundtrip flight to Europe for $450 (that’s not to say you will - I just pulled that number out of my a**), the flight will probably be cheaper than the hotel stay. 
  • You can stay longer/take a longer vacation.

 

• You’ll find good deals once you get to your destination. Tourist hot-spots will want to lure you back. Because of this, I imagine there will be some pretty good prices on outings, experiences, etc. wherever it is you wind up going. 

 

• It’ll be less crowded. I’ve written about overtourism before. I imagine many popular tourist spots will be less crowded for a short time. I can’t see this perk lasting very long, but if you play your cards right you may experience some pretty unique things.

The case for using them on other purchases

When you use travel credit cards for deep discounts when traveling, more than likely you’ll find yourself (at some point) with several thousand miles or points. Most travel credit cards have the option to use your points for purchases other than travel. American Express, as an example, teams up with Amazon - allowing you to use your Amex points for Amazon purchases. And even though using your points for purchases like this won’t get you the best return, you may find that this is a good option for you:

• You may find that you won’t be traveling in the foreseeable future. Points and miles aren’t something you should ‘collect’ and hang on to. If you have several thousand points that you were going to be using for a vacation but that vacation was canceled and you’re not planning another - you’re best use of points may be to use them for something besides travel.

 

• Canceling a card and/or account. If you’re going to be canceling an account or card, sometimes you’ll lose your points or miles you earned from that card. This situation probably won’t happen if, say, you have multiple cards at one bank. I, for example, have multiple Chase cards that earn Ultimate Rewards points. Canceling a travel card that I have would have certain repercussions, but I would be able to keep all of my UR points. This is more likely to happen, however, if you only have one card associated with one bank. 

 

• There’s a change in your finances. If you were furloughed or laid off because of COVID-19 and travel is no longer topping your list of priorities, using your points and/or miles for more pressing things is certainly not a bad option. ​

Bottom line

I had to make the hard decision to recently cancel my American Express Platinum Card. Travel, for me, to make the $550 annual fee worth it, wasn’t going to happen in the near future. I didn’t want to downgrade to a Gold Card, either. I wanted to outright cancel the card. 

I had a problem, though. I had about 70,000 Amex points that I had earned and needed to use before closing the account. So what did I do? I used them to buy a whole bunch of stuff  that I was going to be using now or in the near future on Amazon. It was either that or lose them all when I closed the account. When looking at it like that, there’s no question in my mind I made the right choice.

Here’s the key takeaway: there is no right or wrong way to use the points you’ve earned during your travel hacking journey. Ultimately, it’s up to you. However YOU decide to use YOUR points is up to... YOU. So go out there and enjoy those hard-earned rewards!

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