Here's When Hoarding Your Points and Miles Could Make Sense
Update: Some offers mentioned below are no longer available. View the current offers here.
It's a struggle as old as the points and miles game itself: should you use your points for a given redemption, or hold for something grander in the future? We've argued before that it's not wise to stockpile points without a goal in mind.
Instead, you're better off cashing your points and miles in for a desired trip, flight or hotel stay as soon as you have enough. Given that airlines and hoteliers have devalued their currencies with little to no notice, holding miles unnecessarily could leave you wishing you would have sprung for a trip while values were higher.
But, what if you dream big? Really big? What if you're okay stockpiling points for years, knowing that valuations will change, in hopes of cashing in for that once-in-a-lifetime adventure? I'm in that camp, and I think it's perfectly OK if you are as well. In fact, I routinely coach those new to the points and miles world to practice patience, and to consider saving their points for a trip that they would never pay cash for — even if money was no object.
The Importance of Goals
What's not wise is to aimlessly collect points and miles for years with no idea of how or when you'll use them. You wouldn't save cash for years without directing it to an investment or at least having a long-term reason for maintaining liquidity, and you should think of your various points and miles collections similarly.
When the Chase Sapphire Reserve® launched with a now-legendary-but-dead 100,000-point welcome bonus, I wasn't tempted to use them right away. Instead, I calculated my annual spend on the card and plotted a trajectory of roughly how many points I'd earn over the next couple of years.
At the same time, I eyed my growing balance of Delta SkyMiles — accumulated through hundreds of thousands of flight miles thanks to my job — and did likewise.
I then sat down with my wife and asked: "What's a trip that would be atop our bucket list that we would never pay cash for, but would love to go on if it were free?" The answer was a business class trip from the United States to the Maldives, with as many days as we could afford in an overwater bungalow. Conservatively, a trip like that (for two) would cost around $20,000 if flying on Delta and its SkyTeam partners and staying in a top-tier property like Park Hyatt Maldives Hadahaa.
You can't execute on a trip like that with just one credit card welcome bonus, but if you stack a few together over the course of two years and add in everyday spend, impossible dreams suddenly seem feasible.
Patience is a Virtue
While Delta has unfortunately done away with its public award charts, there was a time where you could exchange 120,000 SkyMiles for a round-trip business class award from the United States to the Maldives — assuming you could find availability, of course. It took me over 3 years to earn 240,000 total SkyMiles by flying, but I could've shortened that by applying for a Gold Delta SkyMiles® Credit Card from American Express, Delta Reserve for Business Credit Card or Platinum Delta SkyMiles® Business Credit Card from American Express.
During that span, I had many opportunities to cash out SkyMiles for shorter, less exotic trips. Instead, I bit the bullet and paid cash for every single trip, using those paid tickets to maintain my Diamond Medallion status while also building upon a pile of points that was slowly but surely getting us ever closer to our Indian Ocean paradise.
Once I had the miles, I needed even more patience. I called Delta's reservation line and could only find business class award availability through SkyTeam partner Korean Air some 10 months out. In other words, even when I found the right dates to exchange miles for confirmed tickets, I had to wait nearly a year to actually fly.
That 10-month window wasn't wasted, though. Thanks to my frequent work travel, I managed to secure Diamond elite status with Hilton. As a TPG reader, I knew that one of the best redemptions in the Maldives was the Park Hyatt — a chain where I had no status, and thus, no points balance. I also knew that you could transfer Chase Ultimate Rewards points to Hyatt at a 1:1 ratio.
With award nights at the Park Hyatt Maldives Hadahaa running 25,000 points per night, I'd need 175,000 Ultimate Rewards points for a weeklong stay. (By the way, this property is soon moving up a category and will therefore demand 30,000 points per night.)
I managed to spend my way to those added 75,000 Chase points over three years, and during the 10 month window between booking both the flight and hotel using points, I plotted a plan to status match from Hilton to Hyatt a few weeks prior to our stay. I knew top-tier Hyatt status would make me eligible for a room upgrade, provide free breakfast for myself and my wife (valued at over $100 per day in the Maldives) and free snacks during an evening manager's reception.
Status matching to Hyatt is once per lifetime, and I knew I'd never maintain that status after the trip, but I calculated it to be worth having for that single week in one of the most remote, expensive places on Earth.
Bottom Line
While we could've embarked on many more trips while we were patiently saving for years, the wow factor of a free week in the Maldives was worth it for us. A long weekend in Miami or visiting family in California, while certainly a factor in one's budget, is typically doable by dutifully saving cash. Saving enough to purchase a four-door sedan, then diverting those funds for a a single week of frolicking, isn't just more difficult — it's probably a terrible financial decision even if you can swing it.
After a decade of earning and burning, my most satisfying redemptions are those in which I know I would never execute on without points. While I wouldn't judge someone for dropping 10,000 miles for a quick visit to Austin from Los Angeles, it's extremely difficult to ever save enough for the most aspirational of holidays without a high degree of self-control.
I'm OK with risking devaluations for the hope of a trip that simply wouldn't be possible without points and miles. Case in point: I saved SkyMiles for another three years to book yet another business class ticket to the Maldives for later this year. Delayed gratification never felt so good.
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All photos by the author unless otherwise noted.
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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.