Most People Are Using The Wrong Credit Card

Discussion in 'Blogstand' started by BoardingArea, Jul 31, 2015.  |  Print Topic

  1. BoardingArea

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    The main reason I love miles & points is because I can redeem them for rewards which are disproportionately valuable. For example, when I can redeem 135,000 American AAdvantage miles for a roundtrip ticket in Cathay Pacific first class which would retail for ~$30,000, that's a heck of a value. Of course it's important to understand that I don't actually value those experiences at face value, since I'd never otherwise pay $30,000 for an airline ticket. While it can be tough to establish an exact value, the concept is simple -- at a minimum your miles are worth the cost you spent to acquire them, and at most they're worth what you value your redemptions at. So in the above example of Cathay Pacific first class, I might say that I value that roundtrip first class ticket at ~$3,000 (it's what I'd probably otherwise be willing to pay for it), and therefore I'm getting a bit over two cents per mile of value on that redemption. The post Most People Are Using The Wrong Credit Card appeared first on One Mile at a Time.

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