Learn the six redemption mistakes that quietly drain your points — and how to get more value in 2026.
August 4, 2026
You've worked hard to accumulate credit card points and airline miles, but one bad redemption decision can waste months of earning. Many travelers unknowingly sacrifice significant value by redeeming points for gift cards, booking inflexible awards, or missing transfer-partner sweet spots.
In 2026, the stakes are higher: major loyalty programs have announced devaluations that increase point requirements on popular awards, and regulators have taken notice. Whether you're new to rewards or a frequent flier, now's the time to compare rewards credit cards and lock in value before programs shift again.
This article will guide you through the six most costly reward redemption mistakes — so you can maximize every point you've earned.
Redemption value is how much each point is worth when you use it. If you redeem 10,000 points for a $200 flight, each point is worth 2 cents. If you redeem those same 10,000 points for a $100 gift card, each point is worth 1 cent.
Major issuers estimate a point is worth about 1 cent on average, but as the CFPB has noted, that value "can vary by redemption option." The same 50,000 points could be worth far less in gift cards than in travel — which is why understanding redemption values helps you avoid costly mistakes.
Yes — gift cards and merchandise typically deliver the lowest value per point compared to travel redemptions. Here's why:
Low redemption rates: Most programs offer substantially less value for gift cards or merchandise than for travel. A $100 Amazon gift card might cost points that could otherwise book a flight worth significantly more.
Limited selection and restrictions: Gift card options are often limited to specific retailers with restrictions on usage. Merchandise catalogs tend to feature overpriced items that usually provide worse value than gift cards.
Statement credits: Many programs offer close to 1 cent per point for statement credits, which beats most gift card rates while giving you cash flexibility.
Travel-related purchases: Use points for car rentals, hotels, or dining through your card's portal. These often provide better value than merchandise while still covering practical expenses.
Save for future travel: Even without specific plans, holding points for travel redemptions typically delivers better long-term value. Just don't wait too long — points can lose value through program devaluations, so consider using them within 12–18 months.
Pro tip: Before making any redemption, check your program's award pricing and compare redemption values. If you're getting around the ~1-cent baseline or less, look for a higher-value option — particularly travel or transfer-partner redemptions.
Saving points for the "perfect trip" can backfire when programs suddenly increase award prices. Airlines and hotels regularly devalue their programs, sometimes overnight and without warning — meaning the value you've accumulated can shrink before you use it.
A flight that costs 50,000 points today could require significantly more points after the next devaluation. In 2026, two major programs announced notable changes:
World of Hyatt announced a shift from a three-tier to a five-tier award chart beginning in May 2026, pushing its top-tier awards to noticeably higher point costs.
Air Canada Aeroplan (effective June 1, 2026) updated its award chart; select premium-cabin routes rose sharply — for example, Atlantic-Pacific business class went from 60,000 to 100,000 points, a 67% increase. (Note: some economy routes decreased.)
Regulators have noticed. The CFPB's May 2024 Issue Spotlight documented reward devaluation as a recurring consumer complaint, noting issuers "reduce the value of rewards already earned by increasing the number of points or miles needed for a redemption." In December 2024, the CFPB issued guidance (industry-contested but not withdrawn) that materially reducing already-earned rewards may constitute an unfair or deceptive practice.
Book confirmed travel promptly: If you have travel plans within 12 months, book now. This locks in current award prices and protects you from future devaluations.
Watch for inactivity expirations: CFPB research has found the majority of issuers with rewards programs have an expiration policy, most tied to inactivity. Check your account regularly and use older points first. However, not all programs work the same: Chase Ultimate Rewards points don't expire as long as your account stays open, and Amex Membership Rewards points have no expiration dates, though they can be lost under certain circumstances such as closing your account.
Stay informed: Subscribe to airline and hotel program emails. They sometimes announce devaluations in advance, giving you time to book before prices increase.
Often yes — transferring points to airline and hotel partners can unlock higher value and access to premium cabins unavailable through credit card portals.
Potentially better redemption rates: Transfer partners frequently offer higher value per point than card-portal bookings. Your 60,000 points might book one flight through the portal — or stretch further through a partner airline's award chart, especially for premium-cabin redemptions.
Access to premium cabins: Partner airlines often release business- and first-class award space that isn't available through credit card travel portals. You can book experiences that would cost thousands in cash for a fraction of the points.
Research award charts: Each partner airline has different pricing for routes. Some programs charge fewer points for certain destinations, creating opportunities for outsized value. Check out our travel credit card guide for deeper strategies.
Time your bookings: Many partners offer better availability and lower prices during off-peak travel periods. Shoulder seasons often provide the best combination of availability and point savings.
Use airline alliances: Transfer partners in the same alliance (Star Alliance, OneWorld, SkyTeam) give you access to multiple airlines' award inventory with one point transfer. This expands your booking options significantly.
Yes — sticking to exact dates and airports often forces you into expensive redemptions. Small changes in your travel plans can save thousands of points and open up better availability.
Airlines charge more points for peak travel dates and popular flight times. A weekend flight might cost materially more points than the same route on a Tuesday. The most convenient flights also book up first, leaving you with worse options that cost more points — or forcing you to pay cash when award availability runs out.
Shift your dates: Moving your trip by 2–3 days often reduces point requirements noticeably. Use airline calendar tools to compare award pricing across different dates.
Check nearby airports: Major metropolitan areas usually have multiple airports. Flying into Oakland instead of San Francisco or Newark instead of JFK can offer better award availability and lower point costs.
Consider connections: Direct flights aren't always the best value. Connecting flights sometimes cost fewer points, and many programs let you add free stopovers in interesting cities along the way.
Paying the cash rate with points at checkout usually locks in the lowest value. Many airline, hotel, and issuer apps offer a "pay with points" option at checkout — but this redemption method typically hovers near the ~1-cent-per-point baseline, or even lower.
Before you click that button, check whether a true award redemption or transfer partner is available. You'll often find your points stretch further when redeemed for an award seat or room rather than converted into a statement credit at checkout. Because a point's value depends heavily on how you redeem it, checkout-based redemptions are often on the low end.
Yes — booking your flight isn't the end of the process. Many travelers miss opportunities to upgrade cabins, improve routings, or get better flight times by ignoring their reservations until departure.
Airlines frequently change flight schedules, and when they make significant time changes to your booking, you often gain free rebooking rights on any available flight.
This gives you the chance to secure better routes, more convenient departure times, or even different dates at no extra cost. Plus, premium cabin space often opens up closer to your departure date as airlines release additional inventory based on demand patterns. This means your economy booking could potentially be upgraded to business class if you monitor availability and act quickly when space becomes available.
Check regularly: Set monthly calendar reminders to review bookings, especially for travel more than three months away. Award availability changes constantly.
Use tracking tools: Services like ExpertFlyer or airline apps can alert you when better flight options become available for your specific routes.
Learn the rules: Each program has different policies for changes, cancellations, and upgrades. Understanding these rules helps you act quickly when opportunities appear.
You don't need to be a travel expert to get extra value from your points. A few smart strategies can turn a basic redemption into an exceptional deal. Here's what you can do:
Visit multiple cities for the same points: Many airlines let you add extra destinations to your trip without charging more points. Instead of flying round-trip to Paris, you could visit Paris, Rome, and London for the same total.
Add free stopovers: Programs like Aeroplan let you stop in another city for free on your way to your final destination. If you're flying in Asia, for example, you could stop in Vancouver or Toronto for a few days at no extra cost.
Mix business and economy: You can often book business class for your long overnight flight and economy for your short daytime connection. This saves points while ensuring you're comfortable when it matters most.
Choose the right airline partner: The same flight might cost substantially different point amounts through one program versus another. A little research before transferring points can save thousands.
New to rewards? Focus on avoiding Mistakes 1 and 5 — redeeming for gift cards and using checkout "pay with points" — since these are the most common value traps for beginners.
Points enthusiast chasing premium travel? Pay special attention to Mistakes 2, 3, and 6 — hoarding risks, transfer partners, and monitoring your bookings — to unlock top-tier redemptions.
Cash-back-first user? The value framing here still applies, though transfer-partner strategies may be less relevant if you prefer cashback flexibility over miles.
Avoiding these six common redemption mistakes can dramatically increase the value you receive from your hard-earned points and miles. Focus on travel redemptions over merchandise, use points promptly to avoid devaluations, and leverage transfer partners for maximum value. Treat your points as valuable currency that deserves careful consideration before spending — rather than rushing into poor redemptions that waste months of earning effort.
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Gift cards and merchandise usually deliver the lowest value per point — often well below travel redemptions. You're generally better off saving points for flights or hotels.
Use your points within 12–18 months of earning them. Book confirmed travel promptly and avoid hoarding while waiting for perfect opportunities that may never come.
Major issuers estimate a point is worth about 1 cent on average, but value can vary by redemption option — travel often delivers more than gift cards or checkout pay-with-points.
Many programs expire points after a period of inactivity. However, Chase Ultimate Rewards points don't expire while your account stays open, and Amex Membership Rewards points have no expiration dates (though they can be lost if you close your account).
They can be. Transferring points to airlines or hotels sometimes unlocks higher value and access to premium cabins — but the value varies by route and program.
This article relies on authoritative secondary sources rather than proprietary BestMoney survey data. We reviewed official regulatory guidance, issuer policies, and program announcements to ensure the information reflects current conditions in 2026. Our primary sources include CFPB reports and circulars on credit card rewards, official airline and hotel program publications (World of Hyatt, Air Canada Aeroplan), and issuer-provided expiration policies from Chase and American Express.
CFPB Issue Spotlight: Credit Card Rewards (May 2024)
CFPB Consumer Financial Protection Circular 2024-07 (December 2024)
CFPB 2025 Consumer Credit Card Market Report
World of Hyatt Award Chart Updates Newsroom (February 2026)
Air Canada Aeroplan 2026 Flight Reward Chart Announcement
Chase: Do Credit Card Points Expire?
American Express: Membership Rewards Account Points Expiration Dates FAQ
David Kindness is a finance, insurance and tax expert at BestMoney.com. He has written for Investopedia, The Balance, and Techopedia, sharing his deep expertise in taxation, accounting, and finance. A CPA with a Bachelor’s in Accounting, David has worked as a tax specialist and Senior Accountant for high-net-worth clients and businesses in the San Diego area.