topic What's the best way to use MR points without traveling? in Credit Cards

What's the best way to use MR points without traveling?

Anonymous — Thu, 11 Oct 2018 02:43:45 GMT

I applied and got approved for the new Amex Gold card. I plan on meeting the minimum spend so I plan on getting 50k points through that. Plus I'm estimating I'll get another few thousand here and there so we'll say I'm expecting 55k MR points. I don't really travel too much so that leaves my redemption options fairly limited. I'm alright with getting 1 cent per point but obviously more is always better. But I definitely can't justify using the points as a statement credit for only .6 cents per point. I've looked into gift cards and the ones I'd be interested in (Target, Walmart, Best Buy, etc.) all charge less than 1 cent per point. So then I considered a Staples gift card, then I use the gift card for a Visa/Mastercard prepaid card. Unfortunately, Staples' policy on that is pretty clear that I can't do this. So without traveling or anything like that, what are some ways I can optimize the MR points?

Re: What's the best way to use MR points without traveling?

Cred4All — Thu, 11 Oct 2018 12:12:31 GMT

It's well known that in order to get the best value for your points, it usually involves travel. That being said, some other less valuable options that are non-travel include:

Paying charges on your account (Only about 0.6 cents per point)
Uber rides (About 1 cent per point)
Amazon - I consistently see offers on Amazon to checkout using points (About 0.7 cents per point)
Shopping at the Membership Rewards Portal

Re: What's the best way to use MR points without traveling?

Anonymous — Thu, 11 Oct 2018 19:51:02 GMT

Plenty of gift cards available for 1CPP Zappos, Gap, Home Depot, Barnes and Noble, Crate and Barrel, Olive Garden, REI, Williams and Sonoma.

But this is why I say the Citi Thank You Premier is such a better card. First you get 60k points sign up bonus but all their gift cards are 1cpp. And you can book hotels at 1.25 CPP. Neither you get with Amex.

Re: What's the best way to use MR points without traveling?

UpperNwGuy — Fri, 12 Oct 2018 08:09:10 GMT

Like it or not, your new Amex Gold is a travel card, designed for people who travel. There is no way to get your money’s worth from this card unless you travel.

Re: What's the best way to use MR points without traveling?

LCC_mk14 — Fri, 12 Oct 2018 12:55:12 GMT

I have the Amex gold and I don’t travel too terribly much. I still find it profitable with the cards i have because of the multipliers. Even if you’re only getting 1 cent per point, it’s still 4% back on groceries, dining etc. plus all the credits. I used my sign up bonus for a saks gift card which was 1 cent valued. I say keep an eye on gift cards or save your points for a rainy day. You may be able to plan a vacation later on where you pay little out of pocket. I don’t think you always need an immediate goal in how to use your points. Life changes and it’s good to have them handy! I also do this with my delta miles. I only fly A few times a year and fairly cheaply so I’m saving those for a bigger trip I want to plan on a few years.

Re: What's the best way to use MR points without traveling?

odd_dog — Fri, 12 Oct 2018 14:09:41 GMT

@LCC_mk14 wrote:
I have the Amex gold and I don’t travel too terribly much. I still find it profitable with the cards i have because of the multipliers. Even if you’re only getting 1 cent per point, it’s still 4% back on groceries, dining etc. plus all the credits. I used my sign up bonus for a saks gift card which was 1 cent valued. I say keep an eye on gift cards or save your points for a rainy day. You may be able to plan a vacation later on where you pay little out of pocket. I don’t think you always need an immediate goal in how to use your points. Life changes and it’s good to have them handy! I also do this with my delta miles. I only fly A few times a year and fairly cheaply so I’m saving those for a bigger trip I want to plan on a few years.

Totally agree with this, the "earn and burn" mentality may be sound, but do not discount saving for those "life changing" moments, or trips you never planned for, but can now do with the points sitting there waiting for you.....

Re: What's the best way to use MR points without traveling?

redpat — Fri, 12 Oct 2018 14:29:39 GMT

None!

Re: What's the best way to use MR points without traveling?

iced — Fri, 12 Oct 2018 14:42:30 GMT

@UpperNwGuy wrote:
Like it or not, your new Amex Gold is a travel card, designed for people who travel. There is no way to get your money’s worth from this card unless you travel.

+1.

If you don't travel, you should re-think the wisdom in using travel cards. Yes, at 1 cpp it's in the same ballpark as cashback, but if cash is what you're after you can also use cashback cards with similar rates of return and not have to deal with converting to gift cards and the like.

That said, your best non-travel options are generally going to be gift cards. Expect about 1cpp with an occasional promotion for 1.1 or 1.2 cpp. A lot of redemptions for merchandise or credits will come in at less than 1 cpp as well.

Re: What's the best way to use MR points without traveling?

jb1280 — Fri, 12 Oct 2018 15:18:42 GMT

If you have the Schwab Platinum Card, you have the ability to cash out your MR Points at $1.25 per MR Point.

Re: What's the best way to use MR points without traveling?

Anonymous — Fri, 12 Oct 2018 15:24:46 GMT

@redpat wrote:
None!

The new washer and dryers in my basement argue otherwise. 1CPP from Home Depot is a good way of redeeming. Especially when the annual fee for the card was waived. So if you end up with 55k points that is $550 to use at Home Depot. I also used the $200 in airline gift cards to pay for taxes on international flights from Southwest. But I am guessing you could sell them for $150 if you don't travel. That would give you $700 in value in the first year without traveling.

Re: What's the best way to use MR points without traveling?

kdm31091 — Fri, 12 Oct 2018 16:17:09 GMT

The card (and MR system) is really designed for travel redemption. It’s easy to get excited by the 4x dining, I know I was. But digging deeper, if you don’t travel, your options are really limited when it comes to redemption.

Best bet are the few gift cards they offer for 1cpp. Down the road I suggest looking into all of these factors before applying as it can save you from getting an account with a reward system that doesn’t fit your needs.

Not every product fits everyone.... you may be best off with cash back. No point in being pinned down to a few gift cards if you can just redeem cash on other products.

Re: What's the best way to use MR points without traveling?

mongstradamus — Fri, 12 Oct 2018 16:35:20 GMT

To be honest people shouldn't be applying for MR or UR earning cards if they don't know how or what they will use their points on. If you are looking for cash-like redemptions then uber card is probably the better option for most.4% cashback on restaurants and 3% travel is a lot easier for people to manage for just cash back.

Re: What's the best way to use MR points without traveling?

Anonymous — Fri, 12 Oct 2018 17:13:12 GMT

@mongstradamus wrote:
To be honest people shouldn't be applying for MR or UR earning cards if they don't know how or what they will use their points on. If you are looking for cash-like redemptions then uber card is probably the better option for most.4% cashback on restaurants and 3% travel is a lot easier for people to manage for just cash back.

Totally disagree. Does the Uber card come with a minimun of $700 of value? Uber only comes with a $100 sign up bonus. How many Restaurants would you have to dine at to make that up? Even if you just sold all the gift cards you got you would come out way a head getting the PRG.

Re: What's the best way to use MR points without traveling?

mongstradamus — Fri, 12 Oct 2018 17:27:22 GMT

@Anonymous wrote:
@mongstradamus wrote:
To be honest people shouldn't be applying for MR or UR earning cards if they don't know how or what they will use their points on. If you are looking for cash-like redemptions then uber card is probably the better option for most.4% cashback on restaurants and 3% travel is a lot easier for people to manage for just cash back.
Totally disagree. Does the Uber card come with a minimun of $700 of value? Uber only comes with a $100 sign up bonus. How many Restaurants would you have to dine at to make that up? Even if you just sold all the gift cards you got you would come out way a head getting the PRG.

700 value ? you aren't using it for travel partners so thats a pretty generous cash value you are giving MR. I would say ~530 dollar value with giftcard. If you aren't using it for travel then you aren't using the travel credit so its 280 dollar value ? If you are thinking of keeping card long term and not just chrun and burn. Then value of prg after year 1 isn't as good. you need to spend 6250 in groceries and restaurants just to break even. Some people can definately do it, but I think uber visa is just easier card for majority of people looking for cash value

Re: What's the best way to use MR points without traveling?

wasCB14 — Fri, 12 Oct 2018 17:47:41 GMT

@jb1280 wrote:
If you have the Schwab Platinum Card, you have the ability to cash out your MR Points at $1.25 per MR Point.

An excellent answer to the question in the subject line, though not necessarily of much use to OP as it entails an additional AF and it sounds like OP can't get much value from the various credits.

Re: What's the best way to use MR points without traveling?

kdm31091 — Fri, 12 Oct 2018 17:50:12 GMT

Also keep in mind the annual fee isn’t waived, so that is another 250 eating into your sign up bonus. I think if you’re getting less than 1cpp (basically not redeeming for travel), it’s not really worthwhile.

Re: What's the best way to use MR points without traveling?

Anonymous — Fri, 12 Oct 2018 17:55:05 GMT

@mongstradamus wrote:
@Anonymous wrote:
@mongstradamus wrote:
To be honest people shouldn't be applying for MR or UR earning cards if they don't know how or what they will use their points on. If you are looking for cash-like redemptions then uber card is probably the better option for most.4% cashback on restaurants and 3% travel is a lot easier for people to manage for just cash back.
Totally disagree. Does the Uber card come with a minimun of $700 of value? Uber only comes with a $100 sign up bonus. How many Restaurants would you have to dine at to make that up? Even if you just sold all the gift cards you got you would come out way a head getting the PRG.
700 value ? you aren't using it for travel partners so thats a pretty generous cash value you are giving MR. I would say ~530 dollar value with giftcard. If you aren't using it for travel then you aren't using the travel credit so its 280 dollar value ? If you are thinking of keeping card long term and not just chrun and burn. Then value of prg after year 1 isn't as good. you need to spend 6250 in groceries and restaurants just to break even. Some people can definately do it, but I think uber visa is just easier card for majority of people looking for cash value

So use the card for sign up bonus and spend you end up with $550 of gift cards. Everyone wears shoes so you could buy $550 dollars worth of shoes from Zappos. Or use it for Home Depot or Crate and Barrel. Or whatever. You can get two airline gift cards in the first year. I don't know how much the gift cards go on the resale market but I would assume you can get $150 from them. I am assuming the person got the card when the annual fee was waived. Now since you have to pay $150 annual fee the first year the value would be less. But still would be much more than a $100 credit from Uber card.

But like I said the Citi Thank You Premier is better as all their gift cards are 1CPP and the whole annual fee is waived at the current time the AMEX PRG/GOLD the best you can do is have 50k points and $100 credit. Which gives you a $150 the first year. You might be able to re-coup some of that with the Grub Hub credit depending on where you live.

Re: What's the best way to use MR points without traveling?

Anonymous — Fri, 12 Oct 2018 17:56:23 GMT

@kdm31091 wrote:
Also keep in mind the annual fee isn’t waived, so that is another 250 eating into your sign up bonus. I think if you’re getting less than 1cpp (basically not redeeming for travel), it’s not really worthwhile.

You can get a $100 credit and 50k sign up bonus with referral so it is a $150 fee. But it depends on your situation. I see people here sign up for cards with $100 sign up bonuses like the Uber card

Re: What's the best way to use MR points without traveling?

iced — Fri, 12 Oct 2018 18:31:12 GMT

@Anonymous wrote:
So use the card for sign up bonus and spend you end up with $550 of gift cards. Everyone wears shoes so you could buy $550 dollars worth of shoes from Zappos. Or use it for Home Depot or Crate and Barrel. Or whatever. You can get two airline gift cards in the first year. I don't know how much the gift cards go on the resale market but I would assume you can get $150 from them. I am assuming the person got the card when the annual fee was waived. Now since you have to pay $150 annual fee the first year the value would be less. But still would be much more than a $100 credit from Uber card.

But like I said the Citi Thank You Premier is better as all their gift cards are 1CPP and the whole annual fee is waived at the current time the AMEX PRG/GOLD the best you can do is have 50k points and $100 credit. Which gives you a $150 the first year. You might be able to re-coup some of that with the Grub Hub credit depending on where you live.

If the only real value a card provides to someone is a sign-up bonus, it's not a good card for that person; it's a bad card with a good bonus. A discussion of a card's value should not depend solely on the sign-up bonus or the "first year" as it's a single event that cannot be repeated - particularly in the case of American Express. Instead, any meaningful discussion about the value of the card itself should be taken over a longer period of time (I would suggest 5 years to start), where the bonus diminishes in value as it's averaged out, unless of course the person is a churner and only interested in short-term value.

It's not clear from the OP whether the intent is to pump and dump the card or to keep it long-term. If the OP's intent is to cash out the bonus and close the card out in a year, there's been several options presented (including yours) for how to convert those points into something salvageable. If the OP is also trying to feel out how to derive value from the card long-term, the point's been made that there's not a good path forward for a non-traveler. The UR/MR programs are really designed for travelers, and not falling into that category makes those programs an inefficient use of spend (again, unless churning).

Re: What's the best way to use MR points without traveling?

redpat — Fri, 12 Oct 2018 18:46:40 GMT

The first year AF is a minus $70. Amex pays you to have the card the year 1.

Who cares how someone uses their points, just care how you would use them.