Deciding when to pay cash and when to use points isn’t as simple as grabbing the best cents-per-point (CPP) redemption and calling it a day. There’s strategy involved, and sometimes paying cash is actually the smarter move.
Here’s a breakdown of when to use points, when to hold onto them, and how to get the most out of both.
When It Makes Sense to Pay Cash
1. Cheap Flights and Hotels
If a flight is under $100 or a hotel is priced low, it almost never makes sense to use points. Spending 10,000+ points for a $75 flight is a terrible deal, and those points could be used for much bigger redemptions later.
2. Using Expiring Travel Credits
Credit cards like The Platinum Card® from American Express offer travel credits that reset annually. If there’s a $200 credit sitting unused, it makes more sense to pay with cash (or credits) instead of using points.
3. High Taxes & Fees on Award Tickets
Some award redemptions come with sky-high fees, making them not worth it. One of the biggest offenders? Virgin Atlantic, which can charge $800+ in fees on business class redemptions. If taxes and fees are approaching the cost of a cash ticket, using points isn’t worth it.
4. When a Cash Fare on a Different Airline Is Cheaper
Booking an award seat valued at $10,000 might seem like a steal—but if a similar cash flight is available for $2,000 on another airline, paying with points might not be the best move. Always check for cheaper alternatives before committing miles.
5. Earning Status
Some hotels and airlines don’t let award bookings count toward status. If the goal is elite perks, paying with cash (or at least confirming whether status-earning is possible) might be the better move.
When to Use Points Instead of Cash
1. High-Value Redemptions
One of the best uses of points is getting outsized value—like business or first-class flights that would normally be out of budget.
Example: Washington to Paris on Air France
✔️ Cash price: $652
✔️ Taxes & fees on award: $98
✔️ Points required: 20,000 Flying Blue Miles
✔️ Redemption value: 2.7 cents per point (solid deal!)
The general rule? If a flight offers 2+ cents per point, it's usually worth using miles instead of cash.
2. Expensive or Once-in-a-Lifetime Experiences
Not every points redemption needs to be “maximized”—sometimes, it’s about making memories.
Example: A castle stay in Switzerland on a honeymoon might not have the best redemption value, but if paying cash isn’t an option, using points is the next best thing.
3. Avoiding Devaluations
Points aren’t an investment—they don’t gain interest, and loyalty programs devalue them all the time. Holding onto hundreds of thousands of points without a plan? Risky move. Using points before they lose value is sometimes the smartest play.
Final Thoughts
At the end of the day, points are meant to be used—not hoarded. Getting an amazing redemption is great, but using points to make unforgettable travel memories is even better. The next time there’s a tough choice between paying cash or using points, consider value, alternatives, and upcoming travel goals before making the call.
And if there’s a huge stash of unused points sitting around—it might be time to put them to work!
