Welcome to Points Pro
Every week, we tackle your questions about travel rewards and credit cards. If you’ve got a question, feel free to submit it.
This week, we have a question from CNBC Select Editor Nicoletta Richardson:
How long should I accumulate points and use them, especially for travel?
Honestly, it really depends on your travel goals. I personally try to make the most of my travel benefits well in advance, although that might not be the ideal approach for everyone.
If you’re looking to snag a big welcome bonus or want to maximize future spending into points, it’s worth considering how to best utilize those benefits.
Why Book Early?
I generally reserve my flights as soon as I can confirm two things:
- That I have enough benefits for my flight
- The dates I want to travel, which are usually flexible
Airlines tend to change their award ticket prices dynamically. The points or miles you’ll need for a flight can fluctuate based on demand and other factors. The cheaper “saver benefits” tend to be limited and can be booked well in advance. Waiting too long to book might mean paying more, particularly when award tickets become scarce. This is especially relevant for business and first-class seats on international flights.
Of course, there’s a downside if your plans shift later on. What if the price drops? To mitigate these risks, I keep an eye on change and cancellation fees. While some international airlines have strict policies, most U.S. airlines—including those linked to Chase Ultimate Rewards® like United MileagePlus and Southwest Rapid Rewards—offer low or no fees for changes to award tickets.
Careless Rewards Collection Can Be Costly
Nicoletta holds a Chase Sapphire Preferred® Card, which she initially got for in-flight purchases. But after recently buying a house, travel isn’t a priority right now. Yet, she’s still racking up points while furnishing her new place, although she’s concerned that waiting too long might devalue her points.
Highlight
With Points Boost, you can earn up to 1.5x rewards on thousands of booked hotels and flights through Chase Travel.
Our Perspective
The Chase Sapphire Preferred® Card offers strong benefits for its $95 annual fee, featuring travel credits and comprehensive coverage.
Pros and Cons
- Transfer benefits to numerous travel partners, including World of Hyatt and Southwest Rapid Rewards.
- Extensive travel and shopping protection.
- $50 Annual Chase Travel Hotel Credit.
- Annual fee applies.
- Requires a high credit score.
Additional Information
Highlights
- Earn 75,000 bonus points after spending $5,000 within the first three months.
- Enjoy 5x points on travel through Chase Travel, 3x on dining, 2x on other travel purchases, and 1x on everything else.
- Receive up to $50 in statement credits on hotel stays through Chase Travel.
- Get a 10% Anniversary Points Boost on your total purchases each account anniversary.
- Insurance for trip cancellations, rental car accidents, lost baggage, and more.
- Free DashPass for reduced shipping and service fees.
- Member of FDIC.
This concern is genuine. Accumulating 100,000 points now might get you more travel opportunities than holding onto them for five years. But travel award values can drop quickly and often without much warning.
Cardholders should receive alerts on changes to the Chase Ultimate Rewards program. For instance, Chase recently announced the exit of Emirates Skywards as a transfer partner with a two-month notice.
However, changes in partner airline or hotel loyalty programs can indirectly affect the value of your points. Adjustments such as category changes in hotel programs or route modifications in airlines happen regularly. Recently, Hyatt announced new price ranges that will take effect in a few months.
If you don’t plan on using your benefits or staying informed about program changes, the value of your points could diminish over time.
