topic Re: Amex MR Points to Cashback? in Credit Cards

Amex MR Points to Cashback?

TyRacing — Thu, 18 Oct 2018 03:58:49 GMT

Can the Amex MR points be redeemed as Cashback or Gift cards? and If so will the value go down?

Re: Amex MR Points to Cashback?

Anonymous — Thu, 18 Oct 2018 03:57:20 GMT

Usually not recommended because it's only a .6 cent per point vs travel that can get you upwards of 2 cents per point.

Re: Amex MR Points to Cashback?

SBR249 — Thu, 18 Oct 2018 04:03:27 GMT

You can use MR points to cover charges on your AmEx card or buy gift cards or pay with points at select online retailers like Amazon, Walmart, Newegg, etc.

But using your MR points in those ways are not great ideas. Looking at my account, to cover a $9.99 charge on my AmEx ED, they wanted 1665 MR points. That works out to be 0.6¢ per point.

To use points at Amazon, the conversion rate works out to be close to 0.7¢ per MR point.

To buy an iTunes gift card, the rate is around 0.85¢ per MR point.

As you can see none of those options even break the 1% cashback threshold. TPG values MR points to be close to 2¢ per point if you redeem for travel rewards like transferring to airline partners so using them for cashback or gift cards is exceptionally poor value.

Re: Amex MR Points to Cashback?

Anonymous — Thu, 18 Oct 2018 04:03:43 GMT

get Schwab Platinum 1.25 cpp.

Re: Amex MR Points to Cashback?

wasCB14 — Thu, 18 Oct 2018 04:09:03 GMT

@Anonymous wrote:
get Schwab Platinum 1.25 cpp.

I consider that "point value insurance" only (in the event my travel slows). It would be a big AF with a lousy earn rate for someone who doesn't fly much.

Re: Amex MR Points to Cashback?

Anonymous — Thu, 18 Oct 2018 09:37:59 GMT

CB14 the most efficient thing to do once you have a ton of points and wanna put in motion a good way to cash out is to get the Schwab Platinum, nab the 60k point SUB, cash in all of your MR points, then after the first year close the card.

But personally I think I'd rather just pool MR points for travel and leave the cash back to the cash back cards.

Re: Amex MR Points to Cashback?

NRB525 — Thu, 18 Oct 2018 10:28:41 GMT

Redeeming MR for gift cards makes Delta SkyPesos look like a rich reward.

Re: Amex MR Points to Cashback?

UpperNwGuy — Thu, 18 Oct 2018 13:04:51 GMT

Don't do it. MR points are only worthwhile if they're used for travel. Otherwise, get the Schwab Platinum and go that route.

Re: Amex MR Points to Cashback?

wasCB14 — Thu, 18 Oct 2018 15:36:04 GMT

@Anonymous wrote:
CB14 the most efficient thing to do once you have a ton of points and wanna put in motion a good way to cash out is to get the Schwab Platinum, nab the 60k point SUB, cash in all of your MR points, then after the first year close the card.

But personally I think I'd rather just pool MR points for travel and leave the cash back to the cash back cards.

OP's signature doesn't show any Amex products, so unless OP has just closed such a card or faced AA, there is no existing pool of points to cash out.

Re: Amex MR Points to Cashback?

Anonymous — Mon, 29 Oct 2018 10:21:43 GMT

Sure, but he was asking about the value of cashing out MR points and to reiterate getting the Schwab Platinum is the most efficient way to do that - even if you have no preexisting points you can still cash out the sign up bonus. But that's moot because whether he has or not any preexisting MR points he was still asking about the value of cashing out.

Re: Amex MR Points to Cashback?

K-in-Boston — Mon, 29 Oct 2018 13:50:00 GMT

@SBR249 wrote:
You can use MR points to cover charges on your AmEx card or buy gift cards or pay with points at select online retailers like Amazon, Walmart, Newegg, etc.

But using your MR points in those ways are not great ideas. Looking at my account, to cover a $9.99 charge on my AmEx ED, they wanted 1665 MR points. That works out to be 0.6¢ per point.

To use points at Amazon, the conversion rate works out to be close to 0.7¢ per MR point.

To buy an iTunes gift card, the rate is around 0.85¢ per MR point.

As you can see none of those options even break the 1% cashback threshold. TPG values MR points to be close to 2¢ per point if you redeem for travel rewards like transferring to airline partners so using them for cashback or gift cards is exceptionally poor value.

Well-stated! There are also a number of gift cards that are typically always 1 cent per point; Home Depot comes to mind. (Note that these can be higher on business cards, where I often see Home Depot at 1.2 to 1.33 cents per point, but I have never seen those offers on personal cards.)

I just wanted to chime in that unless OP finds other value in the perks and benefits of the Charles Schwab co-branded American Express Platinum card, it would require considerable spend (or at least points accumulation) in order to even break even compared to a no-fee Membership Rewards earning card. It's also worth noting that unless OP has a brokerage account with Schwab, there is the risk of having the account closed by American Express and forfeiting all points. Zero cents per point is a lot worse than the bad 0.6 cents per point of statement credit. If someone is looking at a card to ultimately redeem for cash back/statement credit or gift cards, Membership Rewards-earning cards are usually a bad choice. I say usually, because there could be rare cases where it makes sense. If someone pairs the Schwab card with the Gold Card and has a lot of restaurant spend, for example, that's essentially 5% statement credit year-round.

Re: Amex MR Points to Cashback?

Anonymous — Mon, 29 Oct 2018 15:03:43 GMT

Not necessarily, it depends on how much OP values the credits. But if you open the Schwab Platinum and close it after year 1, you'll be able to get $765 just in credits, $785 if the card is opened in December: you get $50 Saks credit Jan-Jun and again for July-Dec, so the first 12 months will actually span 3 Saks credits, you get the $200 airline credit based on calendar year so you actually would get $200 for 2018 and again for 2019 (I used mine on a few $50 AA gift cards), then you get the $200 Uber credit which, if you open the card in December, you should actually get an extra for the first year on that one (if you open the card in the middle of a month you should actually get 13 months of Uber credit, one for the end of the month you applied and one for the first part of your last month, so if you open in December it'll be $20 higher). Not to mention the Global Entry membership is good for 5 years. Cashing in the 60k would give you $750, plus the $765 in credits minus the $550 annual fee for year 1 brings year 1 value to $965 before you even account for the global entry membership and lounge access and other perks like free roadside or the extra $20 Uber credit if you open the card in December etc.

Also, I really don't think it's worth getting the Amex Schwab Platinum and Gold just to get 5% back on restaurants and groceries. Too many solid no fee cash back cards make the opportunity cost here too high. Even if you value the credits at full value you still have to make up $50 in value for the Platinum and $30 for the Gold. That's hard to do via cashing out MR through the Schwab card or even when maximizing via transfer partners when you factor that opportunity cost of no AF cards. The easiest way to get positive value on a long term basis with the charge cards is Centurion lounge access, or if you really do spend so much on grocery and restaurant that you'll get a ton of MR from the gold: but it's intrinsic cuz if you're getting that much MR you're using it on travel anyway (intrinsically leads back to getting more value from lounge access) or to cash out through the Schwab Platinum which brings us back to the dilemma of maximizing value of the charge cards. Personally I have the platinum card because I fly out of DFW and intend to start traveling more so I can utilize the centurion lounge regularly. I have the Blue Business Plus to get 2x MR on all purchases. Otherwise, the aforementioned opportunity cost of foregoing the use of no AF cash back cards is too high to justify any other MR cards for me personally.

Re: Amex MR Points to Cashback?

ScoreSizzle — Mon, 29 Oct 2018 17:07:15 GMT

I used my MR points from my PRG to get a OMEGA Juicer and some toys for my daughter on Amazon

BUT, at the time I was working on my diet and health so it worked for me.

Would I do it again? Probably not, lol.

Re: Amex MR Points to Cashback?

Anonymous — Mon, 29 Oct 2018 21:17:33 GMT

I'm a huge fan of the Schwab Platinum. It technically has all of the perks of the original Platinum and then an additional perk which is the being able to convert MR points at 1.25. While I do agree that your first goal with MR points should be flights, dry spells where you aren't traveling as much is inevitable. Many people on these forums have posted about wondering if they should keep their Platinum, because they aren't traveling as much and/or if they should wait to see if they will be traveling as much.

The main attraction of the Schwab is that you have the option to convert your MR points to cash at a better rate than any of AMEX's other cash options; and I am a huge fan of having a choice and options of what to do with my points instead of being forced to horde all my points when I am not traveling as much. Also, the Schwab Platinum counts as its own product so you can get the Scwhab Platinum with the 60K bonus AND still have the chance to get the regular Platinum with the 100K bonus in the future.

I promised myself I would not go over six cards, but I decided that the Schwab Platinum is going to be what seduces me into opening up that 7th card slot. Also, whomever tried to make having to have a brokerage account a "concern," you get a free brokerage account when you open their free checking account (which is the best checking in my opinion) so i don't know why having a brokerage account would ever be a concern especially when there aren't any minimum balance requirements you can literally just leave it there with no money in it...

Re: Amex MR Points to Cashback?

TyRacing — Mon, 29 Oct 2018 17:35:06 GMT

do amex membership rewards points expire?

how many amex credit cards can someone have? 5? and biz credit cards count in this rule? and also what about the new amazon biz credit cards count?

thank you all for sharing your knowledge

Re: Amex MR Points to Cashback?

Anonymous — Mon, 29 Oct 2018 17:35:16 GMT

@Anonymous wrote:
get Schwab Platinum 1.25 cpp.

Agree with this ^^^

Some people think this is a bad return rate, as you can get more with flights. True, but I'd much rather have a growing investment account filled with low cost index funds to show for my rewards than buying flights. I'm converting points to real assets that will compound over time. It's nice to have something to show for your rewards. Personal goal of mine is to see how high I can get my CS index funds balance off just MR points. Currently at a little over 5 K.

Re: Amex MR Points to Cashback?

wasCB14 — Mon, 29 Oct 2018 17:35:15 GMT

@K-in-Boston wrote:
I just wanted to chime in that unless OP finds other value in the perks and benefits of the Charles Schwab co-branded American Express Platinum card, it would require considerable spend (or at least points accumulation) in order to even break even compared to a no-fee Membership Rewards earning card. It's also worth noting that unless OP has a brokerage account with Schwab, there is the risk of having the account closed by American Express and forfeiting all points. Zero cents per point is a lot worse than the bad 0.6 cents per point of statement credit. If someone is looking at a card to ultimately redeem for cash back/statement credit or gift cards, Membership Rewards-earning cards are usually a bad choice. I say usually, because there could be rare cases where it makes sense. If someone pairs the Schwab card with the Gold Card and has a lot of restaurant spend, for example, that's essentially 5% statement credit year-round.

I'm not sure it's even possible to get the card without a Schwab account. The online application requires (or at least required in 2016) an applicant to log in to the Schwab website.

I suppose someone could create an account and never fund it. Maybe over the phone it could work.

Either way, I agree the risks are significant.

Re: Amex MR Points to Cashback?

wasCB14 — Mon, 29 Oct 2018 17:36:41 GMT

@Anonymous wrote:
@Anonymous wrote:
get Schwab Platinum 1.25 cpp.
Agree with this ^^^

Some people think this is a bad return rate, as you can get more with flights. True, but I'd much rather have a growing investment account filled with low cost index funds to show for my rewards than buying flights. I'm converting points to real assets that will compound over time. It's nice to have something to show for your rewards. Personal goal of mine is to see how high I can get my CS index funds balance off just MR points. Currently at a little over 5 K.

Then earn cash back and avoid a $550 AF.

Re: Amex MR Points to Cashback?

Anonymous — Mon, 29 Oct 2018 17:37:03 GMT

@wasCB14 wrote:
I'm not sure it's even possible to get the card without a Schwab account. The online application requires (or at least required in 2016) an applicant to log in to the Schwab website.

You can't. To get the CS Platinum you must first have a CS account.

Re: Amex MR Points to Cashback?

Anonymous — Mon, 29 Oct 2018 18:02:51 GMT

@wasCB14 wrote:
Then earn cash back and avoid a $550 AF.

Oh I do this too. But I don't want a measely 2-5% cash back, I want 10-20%. I have a three-pronged attack for CC rewards. Let's just say I do very well with the CC game.

If I'm going to bonus chase Amex MR points (and why wouldn't I?), I'd like a nice way to convert them to cash, CS allows this. Getting 15-20% cash return is sweet. Not to mention the bonus MR points from the CS card alone are worth $750. The card is very valuable for the first year, after that one has to do the math if it's worth it to them (in my own case, I'm on the fence w/this). If you can play 2 player mode, then you can really do well, esp if u have a business.