I was sitting on 150,000 credit card points — here's how I got past analysis paralysis to redeem a portion of them
If you've ever been hit with analysis paralysis when it comes to making a decision, you're not alone. For me, the feeling usually strikes when I'm sitting on a stash of credit card rewards and trying to figure out how to use them wisely.
Such was the case a few weeks ago, when the balance of 150,000 Membership Rewards points on my American Express® Gold Card stared back at me from the Amex app on my phone.
I’m always thrilled to have a healthy supply of transferable points, but this also leads to pressure to find the "perfect" redemption worthy of my hard-earned rewards.
Unfortunately, points paralysis is alive and well, so let’s talk about how to move past seeking perfection to make your travels more affordable and enjoyable.
Related: This month's credit card transfer bonuses
Consider the savings
The pursuit of perfection can often leave you disappointed. Instead, aim for convenience and value.
Building up a cache of credit card rewards is a good idea — to an extent. Saving up your points or miles for a specific redemption is one thing, but remember that devaluations can happen at any time, making points and miles a poor long-term investment.
I had to remind myself of this several times before I finally decided to use my Amex Gold points.
What spurred me to action was realizing I'd save $500-plus by using Membership Rewards points to book a series of one-way flights between New York, Seattle, Oahu and Philadelphia to enjoy a weekend with my mom in Hawaii.
Once I reframed how I thought about redeeming my points — I wasn't losing them, I was using them to my advantage — a lightbulb went on. I remember thinking, "Using these points means saving on out-of-pocket costs. Of course, it makes sense to redeem them this way."
My redemptions for this trip weren't unicorns. I transferred 44,000 points to Virgin Atlantic Flying Club and paid $11.20 in taxes and fees to save about $400 on two one-way flights from Seattle-Tacoma International Airport (SEA) to Daniel K. Inouye International Airport (HNL). Still, they provided sufficient value to be good enough.
If I had paid cash for these flights, I would have forfeited a big chunk of my trip budget before I even touched ground in Oahu.
Related: 12 apps and websites that make award redemptions easier to find
Different redemption strategies
TPG staffers take different approaches to redeeming credit card rewards. Some mostly travel solo, while others split their rewards among themselves, their spouses and their children.
Then there are those of us who use a two-player strategy where we recommend cards to our partners or add them as authorized users so we can rapidly accrue points, miles and cash back for joint future redemptions.
Related: Credit card strategies for couples
Following a budget
Olivia Mittak, TPG credit cards editor, tries to get between 1.5 and 2 cents per point when paying for an award ticket.
“I'm not opposed to getting less-than-ideal value for my points if it's a flight I wouldn't otherwise be able to afford. I think a lot of people get too caught up in redeeming for luxury and maximum value, and that shuts them out of opportunities.”
Prioritizing personal preference
Oftentimes, TPG credit cards writer Augusta Stone views her redemptions as fun, "just because" experiences.
“I redeem miles to visit friends when I want to; I don't have to, but I want to, so why not do it for free? The same thing applies when I travel with my partner for his work. If he's going to a cool place to cover a game, and I can get a flight on miles, fantastic.”
Prioritizing premium travel
When deciding whether to make a redemption or pay cash for airfare, Danyal Ahmed, TPG credit cards writer, starts by looking at possible redemptions and then moving to cash fares.
“I’ll compare the cash price to what I could pay using points. If the airfare booked with points is valued at more than 3 cents per dollar, it’s a pass for me.” Still, he prefers booking premium cabins when flying.
“I’ll save up my points or pool with my family to try and secure first- or business-class seats. If a trip comes up last-minute or if I’m planning a multicity trip where shorter flights are not available in business (or the point cost doesn’t make sense), then I’ll redeem for economy.”
Related: The credit cards that help fuel my luxury travel
Opting for premium stays
Carly Helfand, TPG director of content, enjoys the occasional premium flight but prefers to splurge on luxury stays.
“I absolutely love staying at fancy hotels and resorts, so I try to get great value for my points by staying at some of the top properties in the world. I'll spring for a premium-cabin flight in points only once or twice a year if it won't totally demolish my overall points balance — it's fun, but it's not super important to me.”
Trying for maximum redemption value
Chris Nelson, TPG credit cards writer, is big on getting the maximum value possible out of every point he earns and will typically only use points for a less-than-stellar redemption if it’s out of necessity.
“If the redemption value is low and the cash price is high, I’ll only use points for essential trips — like helping a family member get somewhere,” he says. Though he will splash out on a solid business-class points fare, he typically sticks to economy cabins so he doesn’t deplete his reward balances too quickly.
“I won’t use points if the cash price is low or if I’m not getting at least 1.5 cents per point on flights. Hotels are a little different for me, as I hate getting low redemption rates and would rather pay cash.”
Bottom line
Credit card rewards, whether earned in the form of points, miles or cash back, are meant to be used. The exhilaration of finding a unicorn redemption — one that offers a value of several cents per point and puts you in a premium cabin or stunning hotel suite — is incredible. Just remember that these are called unicorns for a reason.
Don't let points paralysis prevent you from using your credit card rewards to offset travel expenses and make memories wherever your journeys take you.
Related: Why the best point redemptions are sometimes the most practical
TPG featured card
Rewards
| 4X | Earn 4X Membership Rewards® points per dollar spent on purchases at restaurants worldwide, on up to $50,000 in purchases per calendar year, then 1X points for the rest of the year. |
| 4X | Earn 4X Membership Rewards® points per dollar spent at US supermarkets, on up to $25,000 in purchases per calendar year, then 1X points for the rest of the year. |
| 3X | Earn 3X Membership Rewards® points per dollar spent on flights booked directly with airlines or on AmexTravel.com. |
| 2X | Earn 2X Membership Rewards® points per dollar spent on prepaid hotels and other eligible purchases booked on AmexTravel.com. |
| 1X | Earn 1X Membership Rewards® point per dollar spent on all other eligible purchases. |
Intro offer
Annual Fee
Recommended Credit
Why We Chose It
There’s a lot to love about the Amex Gold. It’s a fan favorite thanks to its fantastic bonus-earning rates at restaurants worldwide and at U.S. supermarkets. If you’re hitting the skies soon, you’ll also earn bonus Membership Rewards points on travel. Paired with up to $120 in Uber Cash annually (for U.S. Uber rides or Uber Eats orders, card must be added to Uber app and you can redeem with any Amex card), up to $120 in annual dining statement credits to be used with eligible partners, an up to $84 Dunkin’ credit each year at U.S. Dunkin Donuts and an up to $100 Resy credit annually, there’s no reason that foodies shouldn’t add the Amex Gold to their wallet. These benefits alone are worth more than $400, which offsets the $325 annual fee on the Amex Gold card. Enrollment is required for select benefits. (Partner offer)Pros
- 4 points per dollar spent on dining at restaurants worldwide and U.S. supermarkets (on the first $50,000 in purchases per calendar year; then 1 point per dollar spent thereafter and $25,000 in purchases per calendar year; then 1 point per dollar spent thereafter, respectively)
- 3 points per dollar spent on flights booked directly with the airline or with amextravel.com
- Packed with credits foodies will enjoy
- Solid welcome bonus
Cons
- Not as useful for those living outside the U.S.
- Some may have trouble using Uber and other dining credits
- You may be eligible for as high as 100,000 Membership Rewards® Points after you spend $6,000 in eligible purchases on your new Card in your first 6 months of Card Membership. Welcome offers vary and you may not be eligible for an offer. Apply to know if you’re approved and find out your exact welcome offer amount – all with no credit score impact. If you’re approved and choose to accept the Card, your score may be impacted.
- Earn 4X Membership Rewards® points per dollar spent on purchases at restaurants worldwide, on up to $50,000 in purchases per calendar year, then 1X points for the rest of the year.
- Earn 4X Membership Rewards® points per dollar spent at US supermarkets, on up to $25,000 in purchases per calendar year, then 1X points for the rest of the year.
- Earn 3X Membership Rewards® points per dollar spent on flights booked directly with airlines or on AmexTravel.com.
- Earn 2X Membership Rewards® points per dollar spent on prepaid hotels and other eligible purchases booked on AmexTravel.com.
- Earn 1X Membership Rewards® point per dollar spent on all other eligible purchases.
- $120 Uber Cash on Gold: Add your Gold Card to your Uber account and get $10 in Uber Cash each month to use on orders and rides in the U.S. when you select an American Express Card for your transaction. That’s up to $120 Uber Cash annually. Plus, after using your Uber Cash, use your Card to earn 4X Membership Rewards® points for Uber Eats purchases made with restaurants or U.S. supermarkets. Point caps and terms apply.
- $84 Dunkin' Credit: With the $84 Dunkin' Credit, you can earn up to $7 in monthly statement credits after you enroll and pay with the American Express® Gold Card at U.S. Dunkin' locations. Enrollment is required to receive this benefit.
- $100 Resy Credit: Get up to $100 in statement credits each calendar year after you pay with the American Express® Gold Card to dine at U.S. Resy restaurants or make other eligible Resy purchases. That's up to $50 in statement credits semi-annually. Enrollment required.
- $120 Dining Credit: Satisfy your cravings, sweet or savory, with the $120 Dining Credit. Earn up to $10 in statement credits monthly when you pay with the American Express® Gold Card at Grubhub, The Cheesecake Factory, Goldbelly, Wine.com, and Five Guys. Enrollment required.
- Explore over 1,000 upscale hotels worldwide with The Hotel Collection and receive a $100 credit towards eligible charges* with every booking of two nights or more through AmexTravel.com. *Eligible charges vary by property.
- No Foreign Transaction Fees.
- Annual Fee is $325.
- Terms Apply.
Rewards Rate
| 4X | Earn 4X Membership Rewards® points per dollar spent on purchases at restaurants worldwide, on up to $50,000 in purchases per calendar year, then 1X points for the rest of the year. |
| 4X | Earn 4X Membership Rewards® points per dollar spent at US supermarkets, on up to $25,000 in purchases per calendar year, then 1X points for the rest of the year. |
| 3X | Earn 3X Membership Rewards® points per dollar spent on flights booked directly with airlines or on AmexTravel.com. |
| 2X | Earn 2X Membership Rewards® points per dollar spent on prepaid hotels and other eligible purchases booked on AmexTravel.com. |
| 1X | Earn 1X Membership Rewards® point per dollar spent on all other eligible purchases. |
Intro Offer
You may be eligible for as high as 100,000 Membership Rewards® Points after spending $6,000 in eligible purchases on your new Card in your first 6 months of Membership. Welcome offers vary and you may not be eligible for an offer.As High As 100,000 points. Find Out Your Offer.Annual Fee
$325Recommended 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.Excellent to Good
Why We Chose It
There’s a lot to love about the Amex Gold. It’s a fan favorite thanks to its fantastic bonus-earning rates at restaurants worldwide and at U.S. supermarkets. If you’re hitting the skies soon, you’ll also earn bonus Membership Rewards points on travel. Paired with up to $120 in Uber Cash annually (for U.S. Uber rides or Uber Eats orders, card must be added to Uber app and you can redeem with any Amex card), up to $120 in annual dining statement credits to be used with eligible partners, an up to $84 Dunkin’ credit each year at U.S. Dunkin Donuts and an up to $100 Resy credit annually, there’s no reason that foodies shouldn’t add the Amex Gold to their wallet. These benefits alone are worth more than $400, which offsets the $325 annual fee on the Amex Gold card. Enrollment is required for select benefits. (Partner offer)Pros
- 4 points per dollar spent on dining at restaurants worldwide and U.S. supermarkets (on the first $50,000 in purchases per calendar year; then 1 point per dollar spent thereafter and $25,000 in purchases per calendar year; then 1 point per dollar spent thereafter, respectively)
- 3 points per dollar spent on flights booked directly with the airline or with amextravel.com
- Packed with credits foodies will enjoy
- Solid welcome bonus
Cons
- Not as useful for those living outside the U.S.
- Some may have trouble using Uber and other dining credits
- You may be eligible for as high as 100,000 Membership Rewards® Points after you spend $6,000 in eligible purchases on your new Card in your first 6 months of Card Membership. Welcome offers vary and you may not be eligible for an offer. Apply to know if you’re approved and find out your exact welcome offer amount – all with no credit score impact. If you’re approved and choose to accept the Card, your score may be impacted.
- Earn 4X Membership Rewards® points per dollar spent on purchases at restaurants worldwide, on up to $50,000 in purchases per calendar year, then 1X points for the rest of the year.
- Earn 4X Membership Rewards® points per dollar spent at US supermarkets, on up to $25,000 in purchases per calendar year, then 1X points for the rest of the year.
- Earn 3X Membership Rewards® points per dollar spent on flights booked directly with airlines or on AmexTravel.com.
- Earn 2X Membership Rewards® points per dollar spent on prepaid hotels and other eligible purchases booked on AmexTravel.com.
- Earn 1X Membership Rewards® point per dollar spent on all other eligible purchases.
- $120 Uber Cash on Gold: Add your Gold Card to your Uber account and get $10 in Uber Cash each month to use on orders and rides in the U.S. when you select an American Express Card for your transaction. That’s up to $120 Uber Cash annually. Plus, after using your Uber Cash, use your Card to earn 4X Membership Rewards® points for Uber Eats purchases made with restaurants or U.S. supermarkets. Point caps and terms apply.
- $84 Dunkin' Credit: With the $84 Dunkin' Credit, you can earn up to $7 in monthly statement credits after you enroll and pay with the American Express® Gold Card at U.S. Dunkin' locations. Enrollment is required to receive this benefit.
- $100 Resy Credit: Get up to $100 in statement credits each calendar year after you pay with the American Express® Gold Card to dine at U.S. Resy restaurants or make other eligible Resy purchases. That's up to $50 in statement credits semi-annually. Enrollment required.
- $120 Dining Credit: Satisfy your cravings, sweet or savory, with the $120 Dining Credit. Earn up to $10 in statement credits monthly when you pay with the American Express® Gold Card at Grubhub, The Cheesecake Factory, Goldbelly, Wine.com, and Five Guys. Enrollment required.
- Explore over 1,000 upscale hotels worldwide with The Hotel Collection and receive a $100 credit towards eligible charges* with every booking of two nights or more through AmexTravel.com. *Eligible charges vary by property.
- No Foreign Transaction Fees.
- Annual Fee is $325.
- Terms Apply.