Using card points and miles for trips abroad: how it works and whether it is worth it

Card points versus airline miles: what is the difference?

Card points are a currency set by the bank or card issuer and can usually be redeemed several ways: gifts, vouchers, shopping discounts, or a transfer into miles. Miles are the currency of an airline's or alliance's loyalty programme and are mainly spent on that airline's tickets, upgrades and services.

The key point is that the two currencies are not automatically worth the same. One point may become less than one mile or more than one, depending on the programme, so check the current transfer ratio before deciding. Do not rely on numbers from old posts or undated forum threads.

The main ways points end up as a flight

Is an award ticket really free? Taxes, surcharges and seats

Treat the phrase free trip with care. An award ticket usually removes most of the fare, but airport taxes, government fees and, on some airlines, fuel or booking surcharges may still be paid in cash or by card. The amount depends on the route and airline, so read the summary screen before you confirm.

Award seats are also limited and released on the airline's own terms. Holidays and popular routes are often hard to find, so avoid transferring points before you can see a seat on your dates, because most transfers cannot be reversed.

Transfer ratios, expiry and other terms that change

• Points-to-miles ratio: each programme sets its own and may change it, sometimes with a limited notice period.
• Expiry of points and of miles: they run on separate clocks, and a transfer may not extend the expiry of miles you already hold.
• Minimums and transfer blocks: some programmes only transfer in blocks, leaving a remainder of points.
• Matching names: the airline membership name usually has to match the cardholder's name.
• How far an award can be changed or cancelled: read the rules for that award, which can differ from a cash fare.

All of this sits in the programme's terms documents and can be updated, which is why you should not rely on numbers in articles, this one included. Open the issuer's and the airline's official pages at the moment you decide.

A simple way to judge whether a redemption is worth it

1. 1Find the real cash fareSearch the same route, dates and cabin on the airline's site and a comparison site you trust, and note the fare shown that day.
2. 2Find the cost of the awardOpen the airline's award search and note the miles required plus any taxes or fees still payable.
3. 3Work out the points neededIf you must transfer, use the current ratio to see how many points that takes, including rounding up to a block and any transfer fee.
4. 4Compare value per pointTake the cash fare, subtract the taxes you still pay, and divide by the points used. Compare that with the other uses of the same points, such as statement credit or vouchers.
5. 5Ask whether you would buy this ticket anywayIf the answer is no, even an attractive points price may not be something you actually want.

The calculation takes a few minutes and shows that sometimes paying cash and keeping the points for something else makes more sense. The result depends only on the prices and seats on the day you check.

Do not overspend to earn points

Points are a by-product of spending you were going to do anyway, not a reason to buy things you do not need. If a balance carries interest, that interest usually outweighs the value of the points earned. The safer rule is to pay the full statement balance first and treat points as a bonus.

• Read the earning rules: some merchant categories may earn nothing or less than usual.
• An annual fee should be justified by the benefits you really use; check the issuer's own fee schedule.
• Fewer cards used consistently are easier to track for statement dates and expiry.

Common mistakes with points and miles

• Transferring points before confirming an award seat, then finding none.
• Using transfer ratios or terms from an old post after the programme has changed.
• Letting points or miles expire because no reminder was set.
• Overlooking taxes and fees on an award and assuming the whole ticket is free.
• Forgetting to compare with the real cash fare, and redeeming at no better value than the alternatives.

Points, miles and paying abroad

Using a card abroad can bring currency conversion fees and merchant-offered conversion to baht, which can eat the value points give back. Count these costs when judging which card suits a trip. Our article on currency and card charges explains the mechanics.

Staying online once the trip is booked

Once the ticket is booked, decide how you will get online at the destination, for maps, flight status and your bank app when you pay. Our data-only eSIM is bought on the web with the QR code sent by email. Prices and plans change, so check the live price before you buy.

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