 TITLE: Credit Card Miles and Points: How Do They Work? CONTENT: How Much Are Credit Card Points and Miles Worth?\n------------------------------------------------\nThe value for credit card points and miles varies based on the rewards program it belongs to and which credit card is in your wallet.\n### General Travel Points and Miles\nWith general travel credit card miles, for example, you'll get a set value—generally, 1 point or mile is worth 1 cent when you redeem them for free travel.\nFor instance, if you have 50,000 Capital One Venture Rewards Credit Card miles, they are worth $500 in travel.\nWith some credit cards, including the Chase Sapphire Reserve®, your points are worth 50% more (1.50 cents each) if you redeem them for travel through Chase Ultimate Rewards than if you were to use them to get cash back or gift cards.\nThe advantage of this structure is that you always know exactly what your points or miles are worth, and you don't have to worry about running the numbers every time to determine whether you're getting a good redemption value.\nOn the flip side, when you have a flat redemption rate, there's no opportunity to maximize the value of your rewards.\n### Airline Miles and Hotel Points\nIf you have points or miles with a specific airline or hotel loyalty program, however, their value can fluctuate based on how you redeem them. You can typically get more value, for instance, if you use Delta SkyMiles to book a free flight instead of shopping for merchandise in the SkyMiles Marketplace.\nEven if you're booking a free flight or hotel stay, however, the value of your rewards currency can vary based on the current cash price of the booking and other factors.\nCredit card rewards websites will occasionally run the numbers to provide average values for each point or mile you'd earn with various rewards programs. As of November 2019, according to The Points Guy, Delta SkyMiles are worth, on average, 1.2 cents each, while American Airlines AAdvantage miles will net you 1.4 cents apiece.\nThis means that if you have 50,000 miles with both programs, your balance would be worth roughly $600 with Delta and $700 with American Airlines, according to those calculations.\nWith hotel rewards programs, the contrast can be stark. World of Hyatt points, for instance, are worth 1.7 cents apiece on average, while Hilton Honors points give you just 0.6 cents each. So if you have 50,000 points with both programs, they're worth $850 with one and $300 with the other.\nOf course, these are averages. The value of your points or miles can vary depending on when you book your free award flight or hotel stay, where you're headed, whether you're flying coach or first class, or if booking a higher-category hotel versus a lower one.\nThe benefit of having a dynamic pricing structure is that it provides opportunities to get much more than the average value for your rewards. For example, we found a business class flight on Delta from Salt Lake City to Vienna for 98,000 miles and $123.05 in taxes and fees. If you were to book a similar itinerary using cash, you'd pay $5,417.55. That gives your miles a value of 5.4 cents each, which is far more than the 1.2 cent average.\nNote: To calculate point or mile value, subtract the taxes and fees on the award ticket from the cash price, then divide the difference by the number of points or miles to book. In this case, subtract $123.05 from $5,417.55 to get $5,294.50. Then divide that number by 98,000 to get 0.054, or 5.4 cents.\nThat said, it's important to keep in mind that not all redemptions are above-average. If you're not careful, you could get subpar value from your points or miles. Also, rewards earned with airline or hotel rewards programs can lose value over time if the airline or hotel brand makes changes to its loyalty program. END