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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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Is it possible to have too many points? How TPG recommends a reader redeem 35 million miles
Featured image by MICHEL VERDURE/CELEBRITY CRUISES
Ben Smithson is a senior writer for TPG and is based in London. Originally from Australia and a qualified lawyer with a financial services background, he has almost a decade of experience writing about a broad range of travel and loyalty topics.
April 26, 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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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.
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Quick summary
A reader with over 27 million travel rewards points sought advice on how to maximize their value, especially for booking cruises.
Travel rewards points generally offer the best value when redeemed for airfare, particularly through airline partners or select travel portals, rather than for cruises.
Redeeming points for cruises typically yields a lower value per point compared to using a cash-back card, which can provide greater flexibility and higher returns for large purchases like cruises.
For those with large balances, using points for premium flights and hotel stays is recommended, while cash-back cards may be better for non-travel redemptions.
What to consider
Points redeemed for cruises via travel portals often return less value than when used for airfare or transferred to airline partners.
Cash-back cards can provide a consistent return on spending, which may be more advantageous for business owners with high expenses.
Some offers and redemption options mentioned may no longer be available.
What you'll miss from the article
A detailed breakdown of optimal redemption strategies for large points balances, including specific airline and hotel program recommendations.
Generated by AI with support from our editorial team.
Update: Some offers mentioned below are no longer available. View the current offers here.
You might consider a 100,000-point welcome bonus on a new credit card to be a huge haul, and it is, but not all points balances are created equal.
Business owners with significant monthly business expenses could find they are earning points even faster than they can redeem them with the right credit card.
In the past, we've seen some impressive point balances from readers (and even TPG staffers), but this might be the largest yet.
Here's how you can spend millions of credit card points.
Can you have too many travel rewards?
TPG reader Larry M. contacted us looking for some advice on how to use his points. He's been collecting Membership Rewards points through his American Express cards for over 13 years and would like to book a cruise using them.
Larry currently has a staggering 27 million Membership Rewards points, as well as 3.8 million Hilton Honors points, 1.8 million Marriott Bonvoy points and 2.8 million American Airlines AAdvantage miles.
He earned most of those on The Business Platinum Card® from American Express. He usually redeems around 1 to 1.5 million points for travel each year.
He specifically asked how many points it would take to pay for a $10,000 cruise with the Amex Business Platinum versus the Chase Sapphire Reserve® (see rates and fees) or another card that TPG recommends.
You'll get the best value for those Amex points when using them for airfare — whether transferring to airline partners or through Pay with Points using your Amex Business Platinum card to get the 35% airline bonus or Pay with Points bonus. This is for airfare booked through Amex Travel for eligible flights with your selected airline.
That said, Amex points are not great when redeeming for cruises. Through Amex Travel you’re only getting around 0.7 cents per point.
There are no good cruise credit cards, so forget that. What you really need is a solid cash-back charge card — ideally one with no preset spending limit or a large credit line (because you spend a lot). Many cards offer 2% back on all purchases without worrying about any bonus categories.
Let’s do the math on this — for every $1 million you spend, you’re going to get $20,000 in cash back. You can use that cash back to buy cruises, rental cars, you name it. In contrast, 1 million Amex points, when you redeem for a cruise, would be worth $7,000. So, you’d get nearly three times the value by spending on a 2% cash-back card.
I think it’s time to stop putting all the spending on the Amex and start earning cash back. The thing with cash back versus points is that you can invest the cash and it can grow over time. Your Amex points balance is not increasing in value over time.
So use your stockpile of Amex points for flights and hotel points for hotels, and use your cash back for everything else.
Let's break down some of Brian's advice:
The Business Platinum Card from American Express offers American Express Travel's Pay with Points feature, which allows you to receive a 35% bonus when you use points for flights booked through Amex Travel with your selected qualifying airline. The 35% bonus is capped at 1 million points back per calendar year. If Larry were looking for an easy way to redeem his points, perhaps to join a cruise departing from Europe or Asia, he could easily redeem his Membership Rewards points for 1.54 cents each without worrying about transfer partners or award availability.
While Larry could book cruises using his Amex points, this is not a great way to use them as he would only receive 0.7 cents per point in value.
Rather than earning millions of points he may not easily be able to use, Larry could consider a business credit card that earns generous cash back, which he could use to pay for any cruise he wished. While it might not be as sexy as the Business Platinum Card, Larry could consider the Capital One Spark Cash Plus, which offers a sign-up bonus of $2,000 cash back once you spend $30,000 in the first three months and an additional $2,000 cash bonus for every $500,000 spent during the first year. This card also has an annual fee of just $150-which is refunded when you spend $150,000 on the card in a year. Plus, he'd earn an unlimited 2% cash back on every purchase, everywhere — with no limits or category restrictions. A million dollars spent on this card each year would earn Larry $20,000 in cash back (plus the $2,000+ welcome bonus), enough to pay for two luxury cruises each year.
If Larry were to switch to a cash-back credit card, he still has an eye-watering number of Membership Rewards points he could use. While his focus is on cruises, he has so many points he could easily consider some other travel.
Here are some recommendations:
Fly a family of four in business class round-trip to Europe for 400,000 Membership Rewards points by transferring them to Air France-KLM's Flying Blue program and using the flexible calendar search to find availability across the year.
Larry could transfer Membership Rewards to Singapore Airlines' KrisFlyer program to fly a family of four to and from Singapore in business class on the world's longest flight, booking more readily available Advantage awards for 287,000 points per person (so just over 1 million Amex points). That could be even cheaper if he's able to find saver-level awards — though these tend to be quite scarce on this route.
With that many Amex points, it's unlikely Larry would ever need to fly economy again. However, transferring his Membership Rewards to British Airways Executive Club would allow him to book flights to Hawaii from just 16,000 Membership Rewards each way on American and Alaska Airlines from the West Coast. Domestic first-class flights cost a higher 42,000 Avios each way, but if he can find availability, this could still be a great redemption option.
Larry also has nearly 3 million American miles, and with the AAdvantage program's switch to dynamic pricing for AA-operated flights, Larry's balance could be quickly swallowed up. Just a few long-haul trips with his family could do it, as it's not unusual to see 400,000 AAdvantage miles per flight in premium cabins.
Fortunately, AA has, for now, retained an award chart for flights operated by partner airlines. While British Airways should generally be avoided due to its high carrier-imposed surcharges to Europe, there are plenty of great deals to be found if Larry can book either well in advance or at the last minute on the likes of Japan Airlines, Iberia, Etihad Airways and Qatar Airways.
While you won't earn 35 million points from a single welcome bonus, it's easy to earn lots of valuable points and miles with the right travel credit card. Here are some of our favorites offering great welcome bonuses right now:
The Platinum Card® from American Express
American Express® Gold Card
Capital One Venture Rewards Credit Card
Capital One Venture X Rewards Credit Card
Ink Business Preferred® Credit Card (see rates and fees)
Chase Sapphire Preferred® Card (see rates and fees)
Any of these could allow Larry's balances to grow even further.
Bottom line
Larry's points problem is an envious one to have. He already has a lifetime of Membership Rewards points, with at least a million extra points rolling in yearly.
While he could get great value using his existing Membership Rewards points to book flights to position to and from the cruises he likes to take through his Business Platinum's Pay with Points feature, booking cruises this way isn't a great way to use his eight-figure balance.
Instead, he could consider a cash-back card that will earn him 2% on every purchase. He could then use those rewards to book any cruises he likes.
As for redeeming his existing points for flights or hotel stays, the skies are the limit.
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.
