How Much Do Point Valuations Influence Which Card You Use?
Update: Some offers mentioned below are no longer available. View the current offers here.
TPG reader Derek emailed me to ask about earning points:
"I have the Starwood Amex and Chase Freedom Unlimited, and am trying to decide whether to keep the Starwood card in my portfolio. Starpoints are worth the most in your valuations, but is the Freedom Unlimited card more valuable since it earns more points per dollar spent?"
Each month, I publish valuations of points and miles from the most popular loyalty programs, including airlines, hotels, banks and more. The goal of those posts is to help you get a sense of how much your points are worth when you redeem them, but also to guide you when you're deciding which points to earn in the first place. That depends just as much on the earning rate as it does on the individual values.
Starpoints have long been my most highly valued loyalty currency — I list them at 2.7 cents apiece in my latest valuations. Ultimate Rewards points are a bit lower (but still among the highest) at 2.1 cents apiece. Clearly, I think Starpoints are worth more on a per-point basis, but that doesn't mean earning them is always the best choice. Again, the earning rate is critical.
The Starwood Preferred Guest Card from American Express from Amex earns 1 Starpoint per dollar on purchases outside of the brand, while the Chase Freedom Unlimited card earns a flat 1.5 Ultimate Rewards points per dollar on all purchases. With those numbers in mind, Derek's question just boils down to multiplication. I'd value 1.5 Ultimate Rewards points at about 3.15 cents — more than one Starpoint. That means when all else is equal, I'd rather use the Freedom Unlimited card for everyday (non-bonus) spending.
Of course, things aren't always equal, and you might rather earn Starpoints in some scenarios — like if you need to pad your account for a lucrative SPG award, or if you're saving up for a Marriott Hotel + Air package. Similarly, you might prefer to earn Ultimate Rewards points even at a lower earning rate if you're saving up for a high-value redemption like a trip to the Park Hyatt Maldives.
The underlying idea here is that my valuations are mine, and they don't necessarily have to be yours. Think of them as general guidelines rather than ironclad truth. In my opinion, Freedom Unlimited is the better option, but everyone uses points differently. Decide what makes the most sense for you based on how you spend your money and where you want to go.

In any case, you should think about keeping the Starwood Amex even if it isn't your best option for everyday spending. The card offers a variety of benefits like Boingo Wi-Fi access and annual elite credits (which come in handy if you're hoping to qualify for Starwood status). Make sure you look at the whole picture before you close your account.
If you have any other questions, please tweet me @thepointsguy, message me on Facebook or send me an email at info@thepointsguy.com.
TPG featured card
at Bilt's secure site
Terms & restrictions apply. See rates & fees.
| 1X | Choose to earn up to 1X points on rent and mortgage payments with no transaction fee |
| 2X | Earn 2X points + the option to earn 4% back in Bilt Cash on everyday purchases |
Pros
- Choice to earn up to 1 Bilt Point per dollar spent on rent and mortgage payments
- Elevated everyday earnings with both Bilt Points and the option to earn Bilt Cash
- $400 Bilt Travel Portal hotel credit per year (up to $200 biannually)
- $200 Bilt Cash annually
- Priority Pass membership
- No foreign transaction fees
Cons
- Moderate annual fee
- Designed primarily for members seeking a premium, all-in-one card
- Earn points on housing with no transaction fee
- Choose to earn 4% back in Bilt Cash on everyday spend. Use Bilt Cash to unlock point earnings on rent and mortgage payments with no transaction fee, up to 1X.
- 2X points on everyday spend
- $400 Bilt Travel Hotel credit. Applied twice a year, as $200 statement credits, for qualifying Bilt Travel Portal hotel bookings.
- $200 Bilt Cash (awarded annually). At the end of each calendar year, any Bilt Cash balance over $100 will expire.
- Welcome bonus (subject to approval): 50,000 Bilt Points + Gold Status after spending $4,000 on everyday purchases in the first 90 days + $300 of Bilt Cash.
- Priority Pass ($469/year value). See Guide to Benefits.
- Bilt Point redemptions include airlines, hotels, future rent and mortgage payments, Lyft rides, statement credits, student loan balances, a down payment on a home, and more.


