Should you use points or pay cash?
A one-sentence rule that tells you when to spend points and when to keep them.
The 1-cent rule
Here's the shortcut: work out how many cents per point a redemption gives you. If it's clearly above 1 cent, using points is a good deal. If it's around or below 1 cent, pay cash and keep your points for something better.
Example: a $500 flight that costs 30,000 points = 1.67 cents per point. That's a strong use. A $50 gift card for 6,000 points = 0.83 cents — skip it.
When cash usually wins
Small redemptions, gift cards, merchandise, and statement credits tend to give you a penny or less per point. In those cases, pay with cash and let your points keep their optionality.
Cash is also the right call when you'd otherwise stretch to 'afford' something just because you have points.
When points usually win
Award flights, hotel nights, and transfers to travel partners are where points routinely beat cash — often by a wide margin, especially for premium cabins and peak-season hotels.
Don't hoard forever
Points are a currency that tends to lose value over time as programs devalue. Earning and burning in a reasonable window usually beats saving for a 'someday' redemption that keeps getting more expensive.
Takeaway
Use points when a redemption beats ~1 cent each. Otherwise, pay cash and save your points for high-value travel.