Is 1 point on an airline card equal to 1% back?

[IWOL]

I've recently acquired a few cards with rewards and I'm trying to figure out the best way to maximize my rewards.

I have the Discover IT which I use for whatever the 5% categories are, movies and dining right now.

I use my B of A Cash rewards for groceries.

I just got the Fidelity AMEX that I will use for pretty much everyhing else to get 2% cash back.

I also have a United Mileage Explorer card, I did get the 50,000 bonus miles plus 5000 for an authorized user. Not sure when I should use this card as it only gives you 1 mile per $1 spent. Is that equal to 1% back or do you get more than .01 per point when redeeming for travel? Is it worth using this card to get the 10,0000 bonus miles for 25k annual spend, which if my math is correct gives you an additional .40 miles per $1 on a $25,000 spend.

I do a fair amount of traveling so I would use the miles. 

My total annual spending not including my mortgage and car payment is somewhere around $60,000.

I'm hoping to PC my US Bank Platinum to a Cash+ in the near future which will get me 2 more 5% categories.

[visorboy1974]

In general, it is.  On my MileagePlus card, I can get statement credits by converting miles into a $ credit on United purchases.  I was able to redeem over $300 worth of miles last year on credits.       

[takeshi74]

You have to look at the earn and redemption rates.  In some cases 1 mile is 1% but that not always the case.  For the UMPE you need to look at what you intend to redeem the miles for.

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@IWOL wrote:

Is it worth using this card to get the 10,0000 bonus miles for 25k annual spend, which if my math is correct gives you an additional .40 miles per $1 on a $25,000 spend.

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Worth is always subjective and you need to consider your situation, goals and preferences to answer your question.  It was worth it to me when I had a $19K charge that would get me to the requirement last year and didn't qualify for a higher earn rate on any of my other cards.  However, I wouldn't forgo that amount of spend in other categories where I could earn rewards at 5% or better.  Generally speaking I don't earn miles on my UMPE.  I earn them on my other UR cards and transfer.

[longtimelurker]

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@takeshi74 wrote:

You have to look at the earn and redemption rates.  In some cases 1 mile is 1% but that not always the case.  For the UMPE you need to look at what you intend to redeem the miles for.

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@IWOL wrote:

Is it worth using this card to get the 10,0000 bonus miles for 25k annual spend, which if my math is correct gives you an additional .40 miles per $1 on a $25,000 spend.

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Worth is always subjective and you need to consider your situation, goals and preferences to answer your question.  It was worth it to me when I had a $19K charge that would get me to the requirement last year and didn't qualify for a higher earn rate on any of my other cards.  However, I wouldn't forgo that amount of spend in other categories where I could earn rewards at 5% or better.  Generally speaking I don't earn miles on my UMPE.  I earn them on my other UR cards and transfer.

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+1.  As with MR/UR transfers, the value of the miles depends on the exact redemption.  In general, well chosen international premium cabin flights will have values well above 1c per mile (but you would also have to find availability).

[wHiTeSoL]

I value them at a minimum 1% ($.01 / mile) and i'll give you examples that work out for me specifically with united.

Statement credit = $.01 / mile

SFO- LAX = $80-$350, or 10,000 miles (bad value off peak under .01 per mile, good value on peak .035 per mile)

SFO-HNL = $450-$700 or 40,000 miles r/t. (better than .01 per mile at all times coach)

SFO-Asia = $10,000 per ticket retail or 120,000 (way more than .01 per mile in business class)

As everyone says it's very subjective on what you will use, everything above has been real redemptions that I have redeemed or booked. For me I would take 1 mile over 1% back or 3 miles over 5% but that's just me.

Edit: poor iPad formatting

[bribro]

It depends. Personally, I value United miles at $0.02 each, but my redemptions on average are over $0.04 each.