Using Reward Points and Miles for Gifts
I tend to fly a lot, or at least a lot in spurts, both for work and for leisure. This has resulted in a fair accumulation of airline miles. In the past, I’ve cashed in the miles and received free tickets and used them to travel to a number of vacation destinations (and once or twice for upgrades). However, in the past few years, I’ve found free tickets harder to obtain. Either the good dates are blocked out, or the few seats reserved for free tickets were taken a long time ago. Last year, around Christmas, I decided that I probably wouldn’t be able to obtain tickets easily and decided to cash my miles for stuff. I was able to get an SLR camera, an immersion blender, and gift cards for a restaurant. This year, I may look to do the same. Here are some tips for making best use of reward points.
–Stay on top of expiration dates — many airlines and reward programs are starting to have expiry dates on when things expire. In addition, many airlines have (and are expected to continue) raised the number of miles required to exchange for tickets. Be sure to exchange the miles before this happens.
–Try to consolidate all of your miles and points on one program — this will allow for the maximum number of points. In addition to flying on a specific airline, I have earned miles on the same program with consortium airlines, hotel stays, and car rentals. Many credit cards share programs with airlines.
–Order early– if you are intending for the item to be a gift or for a special occasion. I have received all of my orders in the time frame specified, although sometimes this has taken several weeks.
–Don’t waste points on things you don’t really want — Sometimes when you aren’t paying cash, people become frivolous with their orders. Instead browse the catalogue and find things that you need or have been wanting for some time. There’s a good selection of consumer electronics and household items. If you are exchanging for gift cards, be sure it is to a store or restaurant that you (or the person you are giving it to) will go to.
–Take advantage of items that seem to be “cheap” — have an idea of the retail price of the items you are ordering and see which ones are relatively cheap with respect to points. Be aware of shipping costs and surcharges as well.
–If you are just short of points or miles, see if topping up with cash makes sense — most programs allow you to purchase the needed miles or points, although this tends to be fairly costly. Usually, this makes sense only if you have almost enough points and it is a fairly high dollar item.
–Use these same principles for other reward programs — such as those with credit cards, frequent shopper cards, and taking surveys. The cash saved on holiday shopping can add up.
shared at Frugal Friday
