When to use points and when to use cash to book your flight?

How do you know when to use your points or cash?

It's a bit like art , it's subjective.. It all depends on your taste, mood, and budget!

Picture this: some folks are living large, splurging on fancy flights and using points for their shopping sprees because, hey, why not? Others are so financially savvy they could turn balancing a checkbook into an Olympic sport. Then there are those just trying to stretch their paycheck, hoping their points will magically turn into a vacation by year's end.

Let's dive into three scenarios to help you decide when to swipe and when to tap into those precious points, or maybe flip a coin for good measure.

Once you've locked in your travel dates, here's a handy trick to help you decide the best way to choose between booking with cash or points: simply compare the cash price to the points price using the value you've calculated. If the math adds up, go ahead and treat yourself with those hard-earned points!

How to compare using cash vs miles

Scenario 1 being the first box above, Scenario 2 in the middle , I think you've got it;)

Scenario#1 Use Cash

Suppose you found a flight that was $1,200 with taxes and fees of $150.

You would then subtract the taxes and fees and divide that total number by the amount of points that it would require you to fly on that exact trip. You would then take that number and times it by 100 and you get the point value of that trip . As you can see in the example, it is less that a single point which would make using points for this trip a terrible idea. So ,in this case, cash is a better way to go when booking flights with cash or points

Scenario #2 Hmmm?

The middle option shows a point value of 1.27 cents. If you have a ton of points and you don't mind that the value isn't so fabulous, then by all means..you do you boo. If you are low on points or perhaps hoarding them for a ridiculously awesome vacation, paying cash might be the way to go.

It also may depend on the distance that you are flying. For example: when I have to take a repositioning flight to get to my final destination , I don't like wasting my points on short haul flights. I'd rather save those for the bougie overseas flights, am I right?

So, you could go either way on the middle option by booking flights with cash or points, it's up to you

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Scenario #3 - Use Points

We saved the best for last! You could snag deals worth 2, 2.5, or even 3 cents per point with a little research. As you can see this example flight has a killer deal at 2.9 cents per point. You most definitely would want to take advantage of this value and use points. This is where the right travel credit card can make all the difference. Look for cards with multiple airline partners to broaden your search and increase your chances of striking gold.

It's all in the cards

Take American Express for example. With 17 airline partners and 3 hotel partners, you've got plenty of options to search for the best point value. Need even more flexibility? Capital One Venture X and this bank have several other different airline partners to expand your search for endless possibilities.

Using points for hotels

What about hotels?

Yes, you can use the same formula above to compare hotel rates and points.

Point value's for hotels can be ridiculously bad sometimes, like you could fly to Europe for what they would charge for a one night stay in some properties so be uber aware.

With that being said, just like airlines, there are also some amazing deals as well , you just have to do your research. Some of the best point redemptions that I have seen are on the Bilt Mastercard. They have their own hotel search portal on their website and I find the rates can often be much more valuable that the hotels themselves.

Do the math

Crunching the numbers is key to ensuring you're getting the best deal and making the right call between booking flights with cash or points. If you're on the hunt for the perfect travel card, whether you're after lounge access, bonus points, or other perks, drop me a message or swing by the credit card section of my site. I only showcase the crème de la crème of travel cards with the juiciest benefits, so you can't go wrong!