How to Value Points and Miles to Maximize Your Rewards

 When you’re comparing credit cards, a bigger welcome bonus doesn’t always mean more value. For example, one card may offer 80,000 points and another 100,000, but without knowing how much those points are worth, you can’t tell which offer is better. A smaller bonus could be worth more if the points have a higher value.

That’s why understanding the value of your points and miles is crucial. NerdWallet regularly publishes valuations for popular airline, hotel, and credit card rewards, helping you decide when to book with cash, when to use points, and how to get the most out of your loyalty programs.

How to Use Valuations for Award Travel

1. Decide Between Points and Cash
Use valuations to see if an award booking is worth it. For example:

• A Hilton Honors hotel stay costs $1,319.27 or 165,000 points. That’s about 0.8¢ per point—above NerdWallet’s Hilton value of 0.6¢—making it a good redemption.
• An American Airlines flight from Chicago to New York costs $229.97 or 17,000 miles + $11.20. That’s 1.3¢ per mile, below the 1.6¢ value, so cash might be better—unless you value the more flexible award cancellation policy.

2. Compare Award Booking Options
Sometimes you can book the same flight through a partner airline for a better deal. For example, a flight priced at 20,000 American Airlines miles could be booked with Alaska Mileage Plan miles for 17,500 miles—offering better value if Alaska’s miles are worth less.

3. Maximize Spending
Valuations help determine which card gives you the best return.

• Chase Sapphire Preferred®: 3 points per dollar on dining, worth about 6.6¢ per dollar spent when transferred to Hyatt.
• Hilton Honors Surpass®: 6 points per dollar at restaurants, worth 3.6¢ per dollar.

4. Evaluate Promotions
If IHG Rewards offers 2,000 bonus points per night, that’s about $10 in value. The same promotion from Hyatt is worth about $44 per night.

What to Avoid

• Don’t treat valuations as fixed. Prices change, and you may find better or worse deals.
• Consider your travel habits. Only earn points you’ll actually use.
• Don’t confuse valuation with return. Higher point value doesn’t always mean higher earnings.
• Avoid over-maximizing. The best redemption is the one that fits your travel needs, even if it’s below “optimal” value.

Knowing the worth of your points and miles helps you spot the best deals, avoid poor redemptions, and make every reward count.