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The Points Guy believes that credit cards can transform lives, helping you leverage everyday spending for cash back or travel experiences that might otherwise be out of reach. That's why we publish a variety of editorial content and card comparisons: to help you find a great card to turn your goals into reality.
Our site may earn compensation when a customer clicks on a link, when an application is approved, or when an account is opened with our partners, and this may impact how or where these products appear. While we don't cover all available credit cards, our editorial team creates and maintains all of the analysis of these cards, and our content is not influenced nor subject to review by any credit card company, bank or partner prior to (or after) publication. Please view our advertising policy and product review methodology for more information.
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How to use points and miles to give gifts with zero out-of-pocket cost
Katie Genter is a digital nomad who has traveled full time since June 2017. She writes and edits stories about points and miles, and loyalty programs, often letting her personal experiences color these stories.
November 25, 2024 • 8 min read
The cards we feature here are from partners who compensate us when you are approved through our site, and this may impact how or where these products appear. We don't cover all available credit cards, but our analysis, reviews, and opinions are entirely from our editorial team. Terms apply to the offers listed on this page. Please view our advertising policy and product review methodology for more information.Editorial disclaimer: Opinions expressed here are the author's alone, not those of any bank, credit card issuer, airline or hotel chain, and have not been reviewed, approved or otherwise endorsed by any of these entities.
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Quick summary
Redeeming points or miles for holiday gifts can be a practical option if cash is tight, though it typically yields less value than using them for travel.
Options include exchanging rewards for merchant-specific or general gift cards, shopping for merchandise directly with points, or redeeming for statement credits or cash-back.
Gift cards can be given directly or used to purchase presents, but redemption rates and delivery methods vary by program.
Some programs offer better value for specific types of redemptions, and occasional promotions may improve the return on your points.
What to consider
Redemption rates for gift cards, merchandise or cash-back are generally lower than for travel, so compare options to maximize value.
Physical gift cards may require extra delivery time, while electronic options can be sent more quickly.
Check for shipping costs and timelines when redeeming for merchandise to ensure gifts arrive before the holidays.
What you'll miss from the article
A detailed comparison of redemption rates and practical tips for choosing the best nontravel gift option with your points or miles.
Generated by AI with support from our editorial team.
Editor’s note: This is a recurring post, regularly updated with new information.
Each holiday season, some consumers find that they have no extra money for gifts. If you’re in this situation, you could put your holiday purchases on a 0% interest credit card if you know you can pay the charges off during the introductory period.
However, if you have points or miles tucked away in your loyalty accounts, a better option than taking on debt may be to redeem your rewards for gifts. After all, these rewards can serve as a lifeline and help you put a little magic under the tree during difficult times.
At TPG, we get questions about using points and miles for gifts each holiday season. Many readers aren’t interested in giving the gift of travel; instead, they want to give more traditional gifts like toys and gift cards.
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For example, TPG’s senior director of content, Summer Hull, received this message from one of her Instagram followers: "Do any rewards programs allow you to use points for plain Visa gift cards … [?] I lost my job and am looking for a way to utilize rewards for Christmas giving to kids."
We typically don’t recommend redeeming points and miles for nontravel redemptions since you’ll usually get a higher value when you redeem for travel. However, that math means nothing if cashing in some points for nontravel gifts can put smiles on your loved ones’ faces during the holidays.
If you need to redeem points for some presents this year, here are some of the best ways to accomplish that goal.
Redeem points for gift cards
There are two primary ways to use gift cards purchased with points and miles as holiday gifts.
One option is to redeem your points or miles for gift cards to merchants like Target or Best Buy. Then, you can use those gift cards to purchase gifts at these stores.
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The other option is to give the gift card as the gift itself. However, some programs only mail physical gift cards to your home address. That means you’d need to pass the gift card on to your intended recipient once it arrives at your address. Other programs offer only electronic gift cards.
As you’ll see below, some programs provide a better return for your points than others. If you want to redeem your points or miles for gift cards, here are some options to consider:
American Express Membership Rewards: Redeem at a rate of 0.7 to 1 cent per point for merchant-specific gift cards and 0.5 cents per point for American Express gift cards
Capital One miles: Redeem at a rate of 0.8 cents per mile
Choice Privileges: Redeem at a rate of 0.31 cents per point
Citi ThankYou Rewards: Redeem at a rate of 1 cent per point
Chase Ultimate Rewards: Redeem at a rate of 1 cent per point
IHG One Rewards: Redeem at a rate of 0.17 to 0.2 cents per point
Marriott Bonvoy: Redeem at a rate of 0.4 cents per point for Marriott gift cards and 0.2 to 0.39 cents per point for other gift cards
Southwest Rapid Rewards (only Rapid Rewards cardholders): Redeem at a rate of 0.33 to 0.67 cents per point
United MileagePlus: Redeem at a rate of 0.3 cents per mile
Wyndham Rewards: Redeem at a rate of 0.33 to 1.14 cents per point
Programs may occasionally offer sales that let you redeem fewer rewards for select gift cards. But, out of all the options discussed above, only American Express Membership Rewards and Choice Privileges allow you to redeem points for gift cards that aren’t merchant-specific.
The reader who wrote to Summer might consider redeeming Amex Membership Rewards points for Amex gift cards at 0.5 cents per point. However, as you’ll see in a subsequent section, redeeming Membership Rewards points for a statement credit at 0.6 cents per point would be a better option if flexibility is required. Otherwise, the reader could get up to 1 cent per point by redeeming for select retailer-specific gift cards.
Some programs also allow you to redeem points and miles for merchandise. Here are some options to shop for holiday gifts using points and miles:
American Express Membership Rewards: Pay with points at checkout when shopping with various merchants (including Amazon, Best Buy, Dell, Grubhub, Newegg, PayPal, Rite Aid, Saks Fifth Avenue, Seamless and Staples) at a rate of 0.7 cents per point
Bilt Rewards: Pay with Bilt Points on Amazon at a rate of 0.7 cents per point; redeem points for merchandise, Bilt Home Collection items or Bilt Home Design Collection items
Capital One miles: Use miles for purchases at Amazon and PayPal
Chase Ultimate Rewards: Shop for Apple products through the Apple Ultimate Rewards Store at a rate of 1 cent per point, or pay with points at Amazon or PayPal at a rate of 0.8 cents per point
Citi ThankYou Rewards: Use points for purchases at 1-800-Flowers, Amazon, Best Buy, bp/Amaco, CVS, Dollar General, Giant Eagle, Murphy USA, PayPal, Schnucks, Shell, Walgreens and Walmart by using your Citi ThankYou card to pay and then selecting “Yes” when the checkout screen asks whether you’d like to redeem points (there are purchase minimums and some items are excluded)
Delta SkyMiles: Use miles for magazines through MagsForMiles or you can bid or purchase unique activities through SkyMiles Experiences
IHG One Rewards: Shop for merchandise using your points through the IHG catalog, or use points to buy select games, software, movies, e-books, e-magazines and e-newspapers through IHG digital rewards
Marriott Bonvoy: Shop for merchandise using your points at Marriott Bonvoy Shop with Points
Southwest Rapid Rewards (only Rapid Rewards cardholders): Shop for merchandise using your points at Southwest Rapid Rewards More Rewards
United MileagePlus: Shop for merchandise using your miles at MileagePlus Merchandise Awards, redeem miles for Apple products or redeem miles for a magazine or newspaper subscription
Wyndham Rewards: Shop for merchandise, subscriptions and memberships using your points in the Wyndham Rewards online points catalog
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Before redeeming for merchandise, check whether your order will have shipping costs and consider the shipping timeline. After all, you don’t want to use your points and miles for holiday purchases and not get the gift in time.
Finally, you can redeem points and miles in some programs for statement credits or cash-back rewards. Here are your options with some of the most popular programs:
American Express Membership Rewards: 0.6 cents per point for statement credits
Bilt Rewards: 0.55 cents per point for statement credits
Capital One miles: 1 cent per mile for a statement credit to cover travel purchases in the last 90 days or 0.5 cents per mile for other statement credits or a check to your address
Chase Ultimate Rewards: 1 to 1.5 cents per point (depending on which card you hold and the purchase category) through Chase’s Pay Yourself Back feature for a statement credit to cover purchases within the last 90 days; you can also get 1 cent per point for cash-back rewards to your checking or savings account
Citi ThankYou Rewards: 1 cent per point for cash-back rewards, including a statement credit, direct deposit or check by mail
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If you have an eligible Chase card and have charges already on your card that are eligible for Chase’s Pay Yourself Back feature, you could reimburse yourself for those purchases and use the money to buy holiday gifts.
On paper, redeeming points or miles for holiday gifts will provide less value than redeeming for travel. However, if you don’t have extra spending money this holiday season, cashing in your points or miles may be the best way to buy gifts. If you go that route, consider which of the above methods will provide the best value for the rewards you have and the gifts you want to give.
Comments
By commenting, you agree to our Community Guidelines to help create a positive space for conversation. The responses below are not provided or commissioned by the bank advertiser, our partners, or The Points Guy (“TPG”). They have not been reviewed, approved, or otherwise endorsed by any of these parties. All responses are submitted by individual contributors, and neither the bank advertiser, our partners, nor TPG are responsible for ensuring that all posts and/or questions are answered.
