topic Re: Best use of Chase UR points in Credit Cards

Best use of Chase UR points

distantarray — Thu, 21 Feb 2013 18:18:35 GMT

1. Cash back

2. Merchandise

3. Gift cards

4. Travel (hotels or airfare)

1. Cash back is good but only get 1 cents per point value

2. merchandise can usually be found at other retailers for a cheaper price, much better to buy the product at a store like amazon in most cases and just get a cash back credit.

3. gift cards if the gift cards are on a 1:1 ratio don't get it. You'll actually lose points from purchasing the card with your card, then getting cash back.

So 1 through 3 Cash back is the best option, much easier to buy things somewhere else and redeem for cash back in most cases. Although promotions exists that are better.

Now 4. Travel is very tricky.

a) Domestic travel is good for Chase.com booking since 25% bonus. Meaning each point = 1.25% with Sapphire. So a $179 ticket (Tampa to NY) would cost around 14,300 UR points not bad. 1.25 cents per value

b) Transfered to UR points to United would cost 25,000 points about 0.7 value per point

c) pay for the ticket $179 then get the points 358 points then get cash back. $179 = 17900 points - 358 earned =17,542 each point in this case would be worth slightly above a 1 cent value.

Also for A or C you would get frequent flyer miles for miles flown. So this further makes B a terrible deal.

But internationally B is the winner during high season.

To Asia it costs upto $2,800 for a economy ticket vs 65,000 points for round trip through United. 1 point value is over 4 cents, for first class saver award 130,000 points for round trip is around $12,800 making the value about 10 cents a piece.

Now if you used Chase.com booking. You would need 350,000 points for Economy @ $2,800, and over 1,025,000 points for a $12,800 ticket.....

No matter what there's a way to use your points properly, just don't fall for all their gimmicks =)

Cash back is the easiest to understand but expand your mind and explore all options

Re: Best use of Chase UR points

armbenderc — Thu, 21 Feb 2013 18:21:26 GMT

I got it as cashback. Let it pile up and go straight to checking

Unless you want to travel or vacation.

Cash is king, err I mean credit is king.

Re: Best use of Chase UR points

Cdnewmanpac — Thu, 21 Feb 2013 18:32:44 GMT

You are leaving Southwest out of your domestic equation. I assume this is because you are in Florida. Example of converting to SW rapid rewards points for redemption: 3 weeks ago, Southwest wanted $269 RT from Denver to Portland in April. Or, you could get a rt for 9361 points. I booked 3 tickets using RR points, using a total of 28083 points. This compares to $807 to purchase. This is almost 2.9cpp. I know you can do better than this flying to Asia during high season with United, but those of us who don't do that can still come out ahead on domestic routes.

Re: Best use of Chase UR points

Alcibiades — Thu, 21 Feb 2013 18:57:54 GMT

You can also transfer to British Airways Avios. Via British Airways, you can book American Airlines flights at a low cost. For example, 15,000 miles generally gets you to Florida from NY on British Airways. That is comparable to using pay with points.

I would let the points build up to 60,000 or more so you could use for international redemptions on United.

Re: Best use of Chase UR points

Anonymous — Thu, 21 Feb 2013 19:00:41 GMT

You left out Southwest, which usually redeems at 1.6-1.9 cpm. You can also get 2-5 cpp with certain Hyatt Gold Passport bookings.

I also question the math and assumptions in your analysis:

"Transfered to UR points to United would cost 25,000 points about 0.7 value per point." 0.7 cpm is close to a worst case scenario. Of course, if you're booking an S or T fare class domestic flight on United with miles, it would be a poor redemption rate. However, when only higher fare classes are available and for saver awards, using miles for domestic redemptions can easily yield >3 cpm. It's potentionally even better for international flights and business/first class tickets, as you alluded to.

"Now if you used Chase.com booking. You would need 350,000 points for Economy @ $2,800." With the 25% bonus, it's 224,000 UR points to book a $2,800 flight, not 350,000. I think you multiplied when you should have divided.

Bottom line: The best use of UR points is when they're transferred to travel partners (specifically United, Hyatt, Korean Air and BA).

Re: Best use of Chase UR points

FutureBillionaire — Thu, 21 Feb 2013 19:30:40 GMT

@Cdnewmanpac wrote:
You are leaving Southwest out of your domestic equation. I assume this is because you are in Florida. Example of converting to SW rapid rewards points for redemption: 3 weeks ago, Southwest wanted $269 RT from Denver to Portland in April. Or, you could get a rt for 9361 points. I booked 3 tickets using RR points, using a total of 28083 points. This compares to $807 to purchase. This is almost 2.9cpp. I know you can do better than this flying to Asia during high season with United, but those of us who don't do that can still come out ahead on domestic routes.

I'm looking forward to racking up a bunch of points and flying around the country on Southwest Airlines. It's going to be awesome.

Re: Best use of Chase UR points

distantarray — Thu, 21 Feb 2013 22:04:03 GMT

@Anonymous wrote:

@ "Now if you used Chase.com booking. You would need 350,000 points for Economy @ $2,800." With the 25% bonus, it's 224,000 UR points to book a $2,800 flight, not 350,000. I think you multiplied when you should have divided.

Bottom line: The best use of UR points is when they're transferred to travel partners (specifically United, Hyatt, Korean Air and BA).

opps nice catch

posting while clients are waiting is meh lol

anyways yea a lot of people use it for cash back, but definately not the best way to spend them, just wanted to point it out travel airfare or hotel partners are much better than cash back. I get over a 4 cent value for economy to Asia, but I'm tryin out first class this summer. Unfortunately I can't travel much off season =\

Re: Best use of Chase UR points

Iincognito — Fri, 22 Feb 2013 00:34:48 GMT

@armbenderc wrote:
I got it as cashback. Let it pile up and go straight to checking

Unless you want to travel or vacation.

Cash is king, err I mean credit is king.

+1 Yeap, that works great for me.

Re: Best use of Chase UR points

CreditScholar — Fri, 22 Feb 2013 05:19:59 GMT

@Anonymous wrote:
You left out Southwest, which usually redeems at 1.6-1.9 cpm. You can also get 2-5 cpp with certain Hyatt Gold Passport bookings.

I also question the math and assumptions in your analysis:

"Transfered to UR points to United would cost 25,000 points about 0.7 value per point." 0.7 cpm is close to a worst case scenario. Of course, if you're booking an S or T fare class domestic flight on United with miles, it would be a poor redemption rate. However, when only higher fare classes are available and for saver awards, using miles for domestic redemptions can easily yield >3 cpm. It's potentionally even better for international flights and business/first class tickets, as you alluded to.

@ "Now if you used Chase.com booking. You would need 350,000 points for Economy @ $2,800." With the 25% bonus, it's 224,000 UR points to book a $2,800 flight, not 350,000. I think you multiplied when you should have divided.

Bottom line: The best use of UR points is when they're transferred to travel partners (specifically United, Hyatt, Korean Air and BA).

I have to disagree with the analysis of 2-5 cpp for Hyatt bookings. 2 cpp yes, 5 cpp definitely not. I used to value them in this way, but when compared to Hyatt certificates the value drops significantly.

For example the Park Hyatt Tokyo costs about $500 per night or 22k points, which equates to 2.27 cpp. However you can purchase a stay certificate for $325 which gives the exact same room. Neither the certificate nor the award night gets you stay credit, and both cover applicable taxes in addition to the room cost. In this sense they are equal. Running the numbers against the certificate ($325 vs 22k) = 1.48 cpp. The PH Sydney is $461 for a certificate or 22k points, which nets a value of 2.1 cpp.

Prior to the merger, US miles could be bought for 1.88 cpp during a 100% bonus. I can't speak about after the merger is complete, but for the past few years they've been running those sales almost every month (if you're targeted). Unless you need the double open-jaw and stopover provided by United, they have very similar Star Alliance inventory access.

This is why my redemption targets are ~ 2 cpp. The alternatives are close enough that I can't value UR points above 2 cpp.

Re: Best use of Chase UR points

Anonymous — Fri, 22 Feb 2013 06:48:26 GMT

@CreditScholar wrote:
@Anonymous wrote:
You left out Southwest, which usually redeems at 1.6-1.9 cpm. You can also get 2-5 cpp with certain Hyatt Gold Passport bookings.

I also question the math and assumptions in your analysis:

"Transfered to UR points to United would cost 25,000 points about 0.7 value per point." 0.7 cpm is close to a worst case scenario. Of course, if you're booking an S or T fare class domestic flight on United with miles, it would be a poor redemption rate. However, when only higher fare classes are available and for saver awards, using miles for domestic redemptions can easily yield >3 cpm. It's potentionally even better for international flights and business/first class tickets, as you alluded to.

@ "Now if you used Chase.com booking. You would need 350,000 points for Economy @ $2,800." With the 25% bonus, it's 224,000 UR points to book a $2,800 flight, not 350,000. I think you multiplied when you should have divided.

Bottom line: The best use of UR points is when they're transferred to travel partners (specifically United, Hyatt, Korean Air and BA).
I have to disagree with the analysis of 2-5 cpp for Hyatt bookings. 2 cpp yes, 5 cpp definitely not. I used to value them in this way, but when compared to Hyatt certificates the value drops significantly.

For example the Park Hyatt Tokyo costs about $500 per night or 22k points, which equates to 2.27 cpp. However you can purchase a stay certificate for $325 which gives the exact same room. Neither the certificate nor the award night gets you stay credit, and both cover applicable taxes in addition to the room cost. In this sense they are equal. Running the numbers against the certificate ($325 vs 22k) = 1.48 cpp. The PH Sydney is $461 for a certificate or 22k points, which nets a value of 2.1 cpp.

Prior to the merger, US miles could be bought for 1.88 cpp during a 100% bonus. I can't speak about after the merger is complete, but for the past few years they've been running those sales almost every month (if you're targeted). Unless you need the double open-jaw and stopover provided by United, they have very similar Star Alliance inventory access.

This is why my redemption targets are ~ 2 cpp. The alternatives are close enough that I can't value UR points above 2 cpp.

I guess I got lucky when I booked a Hyatt property in Napa a few months ago at 5+ cpp. Good to know about the Hyatt certificates though, I'll check that out. That definitely changes the math.

Of course, points valuations are ultimately a personal thing. If you never fly, United miles aren't worth anything. It's also silly to say United miles are worth 15 cpm because of some arbitrary international first class redemption rate, unless you were really going to spend $12,000 or whatever on that ticket. In my case, I have been able to consistently get 3 cpm or more in value out of my UR points, so that's what I go with. It'll be different for everyone.

Re: Best use of Chase UR points

BullsEye10 — Fri, 22 Feb 2013 16:45:41 GMT

I transferred 30,000 points to my Hyatt account on a 1:1 basis.

I then booked a weekend in the Hyatt 48 Lex in Manhattan for 30,000 points (4 star hotel ideally located in midtown). If I paid cash the room was around $400.00 per night.

That made each point worth 2.66666 cents .... a much better option in my opinion.

~BullsEye10

Re: Best use of Chase UR points

distantarray — Fri, 22 Feb 2013 16:51:29 GMT

@BullsEye10 wrote:
I transferred 30,000 points to my Hyatt account on a 1:1 basis.

I then booked a weekend in the Hyatt 48 Lex in Manhattan for 30,000 points (4 star hotel ideally located in midtown). If I paid cash the room was around $400.00 per night.

That made each point worth 2.66666 cents .... a much better option in my opinion.

~BullsEye10

I don't understand the math in this case isn't it 1.33 cents not 2.66?

30,000 points = $300.00 cash back

300 x 1.3 = $400

Re: Best use of Chase UR points

distantarray — Fri, 22 Feb 2013 16:56:03 GMT

@Anonymous wrote:
@CreditScholar wrote:
@Anonymous wrote:
You left out Southwest, which usually redeems at 1.6-1.9 cpm. You can also get 2-5 cpp with certain Hyatt Gold Passport bookings.

I also question the math and assumptions in your analysis:

"Transfered to UR points to United would cost 25,000 points about 0.7 value per point." 0.7 cpm is close to a worst case scenario. Of course, if you're booking an S or T fare class domestic flight on United with miles, it would be a poor redemption rate. However, when only higher fare classes are available and for saver awards, using miles for domestic redemptions can easily yield >3 cpm. It's potentionally even better for international flights and business/first class tickets, as you alluded to.

@ "Now if you used Chase.com booking. You would need 350,000 points for Economy @ $2,800." With the 25% bonus, it's 224,000 UR points to book a $2,800 flight, not 350,000. I think you multiplied when you should have divided.

Bottom line: The best use of UR points is when they're transferred to travel partners (specifically United, Hyatt, Korean Air and BA).
I have to disagree with the analysis of 2-5 cpp for Hyatt bookings. 2 cpp yes, 5 cpp definitely not. I used to value them in this way, but when compared to Hyatt certificates the value drops significantly.

For example the Park Hyatt Tokyo costs about $500 per night or 22k points, which equates to 2.27 cpp. However you can purchase a stay certificate for $325 which gives the exact same room. Neither the certificate nor the award night gets you stay credit, and both cover applicable taxes in addition to the room cost. In this sense they are equal. Running the numbers against the certificate ($325 vs 22k) = 1.48 cpp. The PH Sydney is $461 for a certificate or 22k points, which nets a value of 2.1 cpp.

Prior to the merger, US miles could be bought for 1.88 cpp during a 100% bonus. I can't speak about after the merger is complete, but for the past few years they've been running those sales almost every month (if you're targeted). Unless you need the double open-jaw and stopover provided by United, they have very similar Star Alliance inventory access.

This is why my redemption targets are ~ 2 cpp. The alternatives are close enough that I can't value UR points above 2 cpp.
I guess I got lucky when I booked a Hyatt property in Napa a few months ago at 5+ cpp. Good to know about the Hyatt certificates though, I'll check that out. That definitely changes the math.

Of course, points valuations are ultimately a personal thing. If you never fly, United miles aren't worth anything. It's also silly to say United miles are worth 15 cpm because of some arbitrary international first class redemption rate, unless you were really going to spend $12,000 or whatever on that ticket. In my case, I have been able to consistently get 3 cpm or more in value out of my UR points, so that's what I go with. It'll be different for everyone.

Not nessasarily true I have a snobby friend who will only fly first class and only makes like $35,000 a year. (rich parents) She doesn't even have a frequent flyer program, she got money from her parents for the trip, I sold her 130,000 and got her a ticket to Thailand (where she's from) and she gave me $5000.00 for it

I also booked a flight for my friend using my miles in July $2,400 ticket on the date he wanted to fly 65,000 miles for round trip I gave him some discounts of course but that's another perk of having friends who travel a lot =)

Re: Best use of Chase UR points

Open123 — Fri, 22 Feb 2013 17:19:26 GMT

@distantarray wrote:

Not nessasarily true I have a snobby friend who will only fly first class and only makes like $35,000 a year. (rich parents) She doesn't even have a frequent flyer program, she got money from her parents for the trip, I sold her 130,000 and got her a ticket to Thailand (where she's from) and she gave me $5000.00 for it

I also booked a flight for my friend using my miles in July $2,400 ticket on the date he wanted to fly 65,000 miles for round trip I gave him some discounts of course but that's another perk of having friends who travel a lot =)

Very enterprising!

This is the attribute I look for the most when hiring. My other partners emphasize what's on paper (education, credentials, and certifications...blah blah), but I've found there is no accounting for the ingraned entrepreneurial spirit.

Kiind of like credit cards. Noting succeeds quite like excess--prudent risk when apping.

Re: Best use of Chase UR points

distantarray — Fri, 22 Feb 2013 17:23:26 GMT

@Open123 wrote:
@distantarray wrote:
Not nessasarily true I have a snobby friend who will only fly first class and only makes like $35,000 a year. (rich parents) She doesn't even have a frequent flyer program, she got money from her parents for the trip, I sold her 130,000 and got her a ticket to Thailand (where she's from) and she gave me $5000.00 for it

I also booked a flight for my friend using my miles in July $2,400 ticket on the date he wanted to fly 65,000 miles for round trip I gave him some discounts of course but that's another perk of having friends who travel a lot =)
Very enterprising!

This is the attribute I look for the most when hiring. My other partners emphasize what's on paper (education, credentials, and certifications...blah blah), but I've found there is no accounting for the ingraned entrepreneurial spirit.

Kiind of like credit cards. Noting succeeds quite like excess--prudent risk when apping.

lol i have a lot of points, and I even convinced the Chase rep to convert my Checking and Savings sign up bonus into points $350 last year into 35,000 x 4 UR points and got my parents and my brother to do the same, then pooled it into my account (we're all Chase Ink holders so we can transfer points to eachother without issues unlike just Sapphire) and I got Ink Sapphire Freedom and United cards

Not to mention my parents both have their own businesses, short sale later they have no credit, so they use my cards and pays me in cash, so I'm very points rich =) My parents don't care as long as I get them 2 tickets to Japan in July every year so it's nice to find ways to make some extra cash, and for me the credit game is more rewarding and entertaining than most hobbies =)

Re: Best use of Chase UR points

Open123 — Fri, 22 Feb 2013 17:31:45 GMT

@distantarray wrote:

...so it's nice to find ways to make some extra cash, and for me the credit game is more rewarding and entertaining than most hobbies =)

It is a lot of fun!

Some play fantasy football, collect stamps, garden, and the points hobby is as good as any, in my view. Definitely a "niche" hobby, since most around me can't understand why I'm reading stuff on credit cards or use phrases like "spend requirements."

Re: Best use of Chase UR points

BullsEye10 — Fri, 22 Feb 2013 17:32:30 GMT

@distantarray wrote:

I don't understand the math in this case isn't it 1.33 cents not 2.66?

30,000 points = $300.00 cash back

300 x 1.3 = $400

I transferred 30,000 points and got just over $800.00 worth of value (~$4000/night)

800 / 30,000 = .0266666666

~BullsEye10

Re: Best use of Chase UR points

Anonymous — Fri, 22 Feb 2013 17:45:14 GMT

@distantarray wrote:

Not nessasarily true I have a snobby friend who will only fly first class and only makes like $35,000 a year. (rich parents) She doesn't even have a frequent flyer program, she got money from her parents for the trip, I sold her 130,000 and got her a ticket to Thailand (where she's from) and she gave me $5000.00 for it

I also booked a flight for my friend using my miles in July $2,400 ticket on the date he wanted to fly 65,000 miles for round trip I gave him some discounts of course but that's another perk of having friends who travel a lot =)

Can you introduce me to your friend? I've got a bridge to sell her.

Re: Best use of Chase UR points

distantarray — Fri, 22 Feb 2013 18:37:07 GMT

@BullsEye10 wrote:
@distantarray wrote:

I don't understand the math in this case isn't it 1.33 cents not 2.66?

30,000 points = $300.00 cash back

300 x 1.3 = $400
I transferred 30,000 points and got just over $800.00 worth of value (~$4000/night)

800 / 30,000 = .0266666666

~BullsEye10

you stated the cash price was $400 in the earlier post not $800?

Re: Best use of Chase UR points

Cdnewmanpac — Fri, 22 Feb 2013 19:59:53 GMT

He booked a "weekend" for 30k points. I believe he stayed 2 nights. Thus, the difference in the math.