Get 50% More Value When You Cover Amex Charges with Points
American Express has one of the best rewards programs out there. They have tons of cards that earn Membership Rewards points and they are all pooled together into one account. You can redeem points in the following ways:
- Transfer to Travel Partners such as Hotels and Airlines
- Book Travel Directly
- Statement Credit
- Cash out with Schwab brokerage account (need Amex Platinum Card for Schwab)
- Gift Cards
- Pay with Points at Checkout
The best value for your points is to transfer them to travel partners. Statement credits and Pay with Points is the worst value possible with just 0.6¢ per Membership Rewards points. But now some cardholders are seeing a 50% bonus when you cover your charges with points. I guess they are trying to mimic Chase’s popular Pay Yourself Back tool.
But even with this bonus, you would still get just 0.9¢ value for your Membership Rewards points. It’s much better than 0.6¢, but still a poor use of points. It could however be useful if you just have a few points left and want to zero out your account. Read more about the American Express Membership Rewards program here.