Statement credits, travel portals, and point transfers — what each means and which gives you the most
Earning rewards is the fun part. Redeeming them is where most beginners quietly lose value without realizing it. The same points can be worth $0.01 each redeemed one way and $0.02 or more redeemed another way — a difference that adds up to hundreds of dollars over time.
This article walks you through every redemption option, what each is worth, and how to always get the most out of what you’ve earned.
Understanding Point Value
Before redeeming anything, it helps to know what your points are actually worth. The standard benchmark used by most personal finance experts is 1 cent per point. That means 10,000 points = $100 in value at baseline.
Some redemption methods fall below that baseline. Others — especially point transfers to airlines — can push well above it. Knowing this helps you make smarter choices every time you go to redeem.
Quick Math
To calculate point value: divide the dollar value of what you’re getting by the number of points spent. Example: a $500 flight booked for 40,000 points = $500 ÷ 40,000 = 1.25 cents per point. Above the 1 cent baseline — a solid redemption.
Redemption Options Ranked by Value
| Redemption Method | Typical Value per Point | Verdict |
|---|---|---|
| Transfer to airline/hotel | 1.5¢ – 2.5¢+ | Best value |
| Travel portal booking | 1.25¢ – 1.5¢ | Good value |
| Statement credit | 1¢ | Baseline |
| Bank deposit / check | 1¢ | Baseline |
| Gift cards | 0.8¢ – 1¢ | Below baseline |
| Merchandise / shopping | 0.5¢ – 0.8¢ | Avoid |
Statement Credits — Simple and Reliable
A statement credit applies your rewards directly to your card balance, reducing what you owe. It’s the simplest redemption method and always gives you the baseline 1 cent per point.
Great for: cashback cards, beginners, anyone who just wants to keep things simple. Not the highest value, but zero complexity and always reliable.
Travel Portals — Easy but Not Always Best
Most major travel cards have their own booking portal — Chase Travel, Amex Travel, Capital One Travel. You use your points like currency to book flights, hotels, and rental cars directly through the portal.
The advantage: easy to use, no transfer required, and some cards boost your point value inside their portal. Chase Sapphire Preferred points are worth 1.25 cents each in the Chase Travel portal, for example. Chase Sapphire Reserve bumps that to 1.5 cents.
The catch: prices in travel portals aren’t always the lowest, and you lose flexibility. Compare the portal price to what you’d find on Google Flights or Expedia before booking.
Point Transfers — The Highest Value Play
This is where experienced cardholders unlock the real value of their points. Transferring points from a bank rewards program to an airline or hotel loyalty program can dramatically increase what your points are worth.
For example: 50,000 Chase Ultimate Rewards points transferred to United Airlines MileagePlus might book a flight that would otherwise cost $800–$1,000 in cash. That’s 1.6–2 cents per point — well above the baseline.
Transfer Partners to Know
Chase Ultimate Rewards: United, Southwest, British Airways, Hyatt, Marriott
Amex Membership Rewards: Delta, Air Canada, British Airways, Hilton, Marriott
Capital One Miles: Air Canada, Turkish Airlines, Wyndham, Choice Hotels
Transfer partners are not created equal. Some offer better redemption rates than others. A little research before transferring — checking award availability and comparing rates — can make a big difference.
What to Avoid
Merchandise and shopping portals — Redeeming points for Amazon purchases or card issuer merchandise almost always gives you 0.5–0.8 cents per point. You’re leaving real money behind every time.
Letting rewards expire — Some programs expire points after 12–24 months of inactivity. Set a calendar reminder to redeem or make a small purchase to keep your account active.
Transferring points you can’t use — Point transfers to airline or hotel programs are almost always one-way and irreversible. Only transfer when you have a specific redemption in mind.
Never Do This
Don’t redeem points for cash at a rate below 1 cent per point just because the option is there. Always check your redemption options before clicking confirm — a better option is almost always available.
A Simple Redemption Strategy for Beginners
If you’re just starting out and don’t want to overthink it, follow this order:
Step 1 — Use statement credits or bank deposits for cashback cards. Simple, full value, no effort.
Step 2 — Use the travel portal for travel cards if you want easy bookings without complexity.
Step 3 — Learn point transfers once you have 50,000+ points and a trip in mind. The payoff is worth the learning curve.
Bottom Line
The rewards are only as good as how you redeem them. Avoid merchandise. Don’t let points sit idle. Start simple with statement credits, graduate to travel portals, and eventually explore transfers when you’re ready for the best value. The points you’ve already earned deserve better than half their worth.
For informational purposes only. Not financial advice. Point values and transfer partner availability may change — always verify with your card issuer before redeeming or transferring.