How do I use my points/miles?

July 21, 2024

How do I use my points?

Ok, If you have followed the blog so far, I have told you how to earn points and how to maximize your points earnings with specific credit cards and programs. Now its time to look at how we use those points to get the maximum value. I will include some graphics in this post to help you understand.

Lets talk about the Capital One Venture X card, for this example we will imagine I have a point balance of 45,000 points. This means with Venture X I have spent $22,500 without any bonus awards. There are several ways to use these points and we will discuss the value in each one. In this post the terms miles and points are interchangeable.

https://capital.one/3XHAQXQ

1. Venture X will allow you to take a statement credit for any travel related expense and deduct it from your points balance. Example…..I purchased a roundtrip ticket on Delta Airlines using my Venture X for $225. I will be awarded 2x miles 0r 450 miles. I will then have six months to have my statement credited for this flight expense . The cost will be 22,500 miles. Leaving me 22,500 miles in my account. This is a 1/1 miles usage and is not the best use of your miles.

2. Venture X has its own travel portal that will allow you to book flights and hotels using your rewards points. This portal is required if you want to earn the 5x 10x multipliers they give for flight car and hotel bookings. It is also the only way to use the annual $300 travel credit they give you. I have not had any problems with the portal and they will price match if you find a cheaper rate on another site. However this is not the best way to use your hard earned miles.

3. Very often when you find a flight that costs $225, if you then search it as a reward flight you will see that its only 10,000 miles and if you do the math you will see that it’s value is $100. Capital One Venture X has airline partners that will allow you to transfer your miles from your Venture X account to the frequent flyer program of the airline where your flight is. Doing this will most often increase the value of your miles to 2/1 or 3/1 and if you monitor the frequent flyer programs they often have sales that will give you a bonus of 20-50% when you transfer your miles.

American Express Gold has its own set of airline partners for miles transfer.

Apply for an American Express Card with this link. With your new Card, you could earn a welcome bonus and your friend could earn a referral bonus. Terms Apply. https://americanexpress.com/en-us/referral/gold-card?ref=DAVIdCrLMr&xl=cp19

A prime example is the flight I just booked for my wife and I next June. I found the flight on https://www.pointsyeah.com/. This is a business class flight with lie flat seats, direct from JFK to Madrid for 43,000 miles each, a total of 86,000 miles. If you do the math at 1/1 these points would be worth $860 but this redemption is almost 5/1. The cash cost of this flight was $4400. So clearly points was the way to go. The flight is on Air Europa (Primary Airline of Spain) who is a partner of KLM. I was able to transfer my points to KLM Flying Blue Program and book this flight. $4400 business class for $860 worth of points!!!!!!!

I know this is a lot to learn! If you have questions just ask!

Now go back and learn how to earn these points and miles.