Points of View: Can I cash out my points, and is it worth it?
We spend a lot of time encouraging TPG readers to redeem their points and miles for maximum value. On the other hand, we also talk about the best credit cards for cash back or using those to offset payments when you can't use points and miles.
This begs an obvious question from the gap in the middle: Can you cash out your points and miles? If so, is it worth it?
Let's take a look at options for cashing out your points and miles, plus what value you can expect to receive via this redemption method. We'll compare that to the value you'll get from other redemptions to help you decide whether cashing out is worth it.
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Options for cashing out points and miles
Before we can figure out if it's a good deal, we need to know what options there are for cashing out points and miles. Here are the most common possibilities:
- Cash via bank deposit or check in the mail: This may be what comes to mind first when thinking of cashing out your points. Not all points programs offer this option.
- Statement credits: Each bank has a different policy on this, where points may be worth more or less depending on the types of purchases you're covering with your points.
- Pay with points: Many programs allow you to use points as cash at Amazon, with PayPal or at other merchants to cover or offset part of a purchase.
- Pay Yourself Back from Chase: Depending on which Chase credit card you have, you can cash out your points at a rate of 1 to 1.5 cents each. Applicable categories depend on which card you have but possibilities include Airbnb stays, restaurants or a range of business expenses. These current categories run through Sep. 30, 2022, and points can only be redeemed in this way against purchases you've already made.
- Elevated cash-out rate from Amex: Those who have The Platinum Card® from American Express Exclusively for Charles Schwab can redeem Membership Rewards points at a value of 1.1 cents apiece as a deposit into their checking accounts.
The information for The Platinum Card from American Express for Charles Schwab has been collected independently by The Points Guy. The card details on this page have not been reviewed or provided by the card issuer.
Is it worth it to cash out my points?
Some banks offer far fewer redemption options than others. For instance, you can redeem Bank of America Premium Rewards at a value of 1 cent each, but you don't have a wide range of choices in how to use these points. Similar limits on redemption options apply to U.S. Bank FlexPerks redemptions.
For programs with numerous redemption options that function like cash, here are the values you can expect to obtain:
| American Express Membership Rewards | Capital One Miles | Chase Ultimate Rewards | Citi ThankYou Rewards | |
|---|---|---|---|---|
| Statement credit against charges | 0.6 cents each. | 0.5 cents each. | 1 cent each. | 0.8 cents each. |
| Statement credit against travel purchases | N/A | 1 cent each. | N/A | N/A |
| Pay with points at checkout | Up to 0.7 cents each. | 0.8 cents each. | 0.8 cents each. | 0.8 cents each. |
| Shop with points | 0.5 cents each. | 0.8 cents each. | 0.5 cents each. | 0.5 cents each. |
| Redeeming for gift cards | 1 cent each. | 1.1 cents each. | Up to 1.1 cents each. | Up to 1.1 cents each. |
| Cashing out to Schwab account | 1.1 cents each. | N/A | N/A | N/A |
| Check in the mail | N/A | 0.5 cents each. | N/A | 1 cent each. |
| Pay Yourself Back | N/A | N/A | Up to 1.5 cents each. | N/A |
| General statement credit | N/A | N/A | N/A | Up to 1 cent each. |
| Direct deposit into a bank account | N/A | N/A | N/A | Up to 1 cent each. |
| TPG valuation* | 2 cents each. | 1.85 cents each. | 2 cents each. | 1.8 cents each. |
* Points value is an estimated value calculated by TPG and not the card issuer.
It's important to note that redemption values with Citi can vary, depending on which credit card(s) you have. Additionally, if you have the Citi Rewards+® Card, remember that it offers a 10% rebate against points redeemed. Pairing this with the Citi Premier® Card or the Citi Prestige® Card (which is no longer available to new applicants) could lead to a value of 1.1 cents when cashing out points.
The information for the Citi Prestige has been collected independently by The Points Guy. The card details on this page have not been reviewed or provided by the card issuer.
While options exist for cashing out your points, asking "is it worth it?" requires us to look at what values you can obtain. Compare this to TPG's average valuations of these points and you'll see that they all fall short — sometimes by a large margin — of the redemption value you can obtain when using your points for travel.
Related: How to redeem Chase Ultimate Rewards points for maximum value
Bottom line
Options exist for cashing out your points. If you need cash in an emergency, knowing that you're able to turn your credit card rewards points into cash can be helpful. However, it's generally not a good idea.
You may fetch as little as a quarter of TPG's average values for these points, depending on which methods you use to cash in your points. Finally, none of the redemption options listed in this guide reach or exceed our points valuations, meaning that if you're not in a financial crunch, there are much better uses for your points than cashing them out.
Editor’s note: “Points of View” is a new series evaluating decisions on which credit card to use. If you’re facing a dilemma about which card is best for an upcoming payment, email us at tips@thepointsguy.com.
Also in this series:
Top offers from our partners
How we chose these cards
TPG featured card
Rewards
| 3X | Earn 3X Miles on Delta purchases and purchases made directly with hotels. |
| 2X | Earn 2X Miles at restaurants worldwide, including takeout and delivery in the U.S. and at U.S. supermarkets. |
| 1X | Earn 1X Miles on all other eligible purchases. |
Intro offer
Annual Fee
Recommended Credit
Why We Chose It
Build your loyalty to Delta by applying for the carrier's mid-tier card option, the Delta SkyMiles Platinum card. The annual fee is quickly recouped by the card's travel perks, such as an application credit to Global Entry or TSA Precheck, annual companion certificate and so much more. Plus you can fast-track to elite status simply through card spend.Pros
- Earn bonus Medallion® Qualification Miles (MQMs) and an Medallion Qualifying Dollar (MQD) waiver when you hit specific spending thresholds with your card within a calendar year
- Receive a Domestic Main Cabin round-trip companion certificate each year
- Statement credit for TSA PreCheck/Global Entry fee (up to $100)
- First checked bag free
Cons
- Doesn't make sense if you don't fly Delta
- SkyMiles aren't the most valuable airline currency
- Earn 90,000 bonus miles after you spend $4,000 in purchases on your new Card in your first 6 months.
- Receive a Domestic Main Cabin round-trip companion certificate each year upon renewal of your Card. Payment of the government imposed taxes and fees of no more than $80 for roundtrip domestic flights (for itineraries with up to four flight segments) is required. Baggage charges and other restrictions apply. See terms and conditions for details.
- Enjoy your first checked bag free on Delta flights. Plus enjoy Main Cabin 1 Priority Boarding and settle into your seat sooner.
- New: Card Members get 15% off when using miles to book Award Travel on Delta flights through delta.com and the Fly Delta app. Discount not applicable to partner-operated flights or to taxes and fees.
- Earn 3X Miles on Delta purchases and purchases made directly with hotels.
- Earn 2X Miles at restaurants worldwide including takeout and delivery in the U.S., and at U.S. supermarkets.
- Earn 1X Mile on all other eligible purchases.
- Enjoy a per-visit rate of $50 per person for Card Members and up to two guests to enter the Delta Sky Club when traveling on a Delta flight.
- Fee Credit for Global Entry or TSA PreCheck® after you apply through any Authorized Enrollment Provider. If approved for Global Entry, at no additional charge, you will receive access to TSA PreCheck.
- Earn up to 20,000 Medallion® Qualification Miles (MQMs) with Status Boost® per year. After you spend $25,000 in purchases on your Card in a calendar year, you can earn 10,000 MQMs up to two times per year, getting you closer to Medallion® Status. MQMs are used to determine Medallion® Status and are different than miles you earn toward flights.
- No Foreign Transaction Fees.
- $250 Annual Fee.
- Terms Apply.
- See Rates & Fees
Rewards Rate
| 3X | Earn 3X Miles on Delta purchases and purchases made directly with hotels. |
| 2X | Earn 2X Miles at restaurants worldwide, including takeout and delivery in the U.S. and at U.S. supermarkets. |
| 1X | Earn 1X Miles on all other eligible purchases. |
Intro Offer
Earn 90,000 bonus miles after you spend $4,000 in purchases on your new Card in your first 6 months.Earn 90,000 Bonus Miles50,000 Bonus MilesAnnual Fee
$250Recommended Credit
Credit ranges are a variation of FICO© Score 8, one of many types of credit scores lenders may use when considering your credit card application.670-850Excellent/Good
Why We Chose It
Build your loyalty to Delta by applying for the carrier's mid-tier card option, the Delta SkyMiles Platinum card. The annual fee is quickly recouped by the card's travel perks, such as an application credit to Global Entry or TSA Precheck, annual companion certificate and so much more. Plus you can fast-track to elite status simply through card spend.Pros
- Earn bonus Medallion® Qualification Miles (MQMs) and an Medallion Qualifying Dollar (MQD) waiver when you hit specific spending thresholds with your card within a calendar year
- Receive a Domestic Main Cabin round-trip companion certificate each year
- Statement credit for TSA PreCheck/Global Entry fee (up to $100)
- First checked bag free
Cons
- Doesn't make sense if you don't fly Delta
- SkyMiles aren't the most valuable airline currency
- Earn 90,000 bonus miles after you spend $4,000 in purchases on your new Card in your first 6 months.
- Receive a Domestic Main Cabin round-trip companion certificate each year upon renewal of your Card. Payment of the government imposed taxes and fees of no more than $80 for roundtrip domestic flights (for itineraries with up to four flight segments) is required. Baggage charges and other restrictions apply. See terms and conditions for details.
- Enjoy your first checked bag free on Delta flights. Plus enjoy Main Cabin 1 Priority Boarding and settle into your seat sooner.
- New: Card Members get 15% off when using miles to book Award Travel on Delta flights through delta.com and the Fly Delta app. Discount not applicable to partner-operated flights or to taxes and fees.
- Earn 3X Miles on Delta purchases and purchases made directly with hotels.
- Earn 2X Miles at restaurants worldwide including takeout and delivery in the U.S., and at U.S. supermarkets.
- Earn 1X Mile on all other eligible purchases.
- Enjoy a per-visit rate of $50 per person for Card Members and up to two guests to enter the Delta Sky Club when traveling on a Delta flight.
- Fee Credit for Global Entry or TSA PreCheck® after you apply through any Authorized Enrollment Provider. If approved for Global Entry, at no additional charge, you will receive access to TSA PreCheck.
- Earn up to 20,000 Medallion® Qualification Miles (MQMs) with Status Boost® per year. After you spend $25,000 in purchases on your Card in a calendar year, you can earn 10,000 MQMs up to two times per year, getting you closer to Medallion® Status. MQMs are used to determine Medallion® Status and are different than miles you earn toward flights.
- No Foreign Transaction Fees.
- $250 Annual Fee.
- Terms Apply.
- See Rates & Fees