The Worst Ways to Redeem Credit Card Points

By Bryce Casson, Founder · Cardocrat · Updated August 2026
The short answer: The fastest way to lose points value is to redeem for gift cards, merchandise, or a statement credit, which typically return a cent or less per point, often much less. The points were worth far more transferred to an airline or hotel partner, so the rule is simple: redeem for travel through transfers, not for stuff through a bank menu.

The redemptions that destroy value

Banks make it easy to redeem points for gift cards, merchandise, charity, or a statement credit, and all of them are usually bad deals, paying a cent per point or less. Transferable points like Chase, Amex, Citi, and Capital One are worth far more moved to a travel partner, where the same points can return several cents each. Cardocrat values every point at a flat 1 cent as a floor, and these menu redemptions often fall below even that. See what points are worth.

Why the gap is so large

Award prices and cash prices are set separately, so a business-class seat or a top hotel night can cost the same points as a low cash fare while the cash price is enormous. Cashing those points out for a gift card throws that gap away. The whole reason a travel card can beat a cash-back card is the transfer-to-partner redemption, and skipping it makes the travel card pointless. See transferable points explained.

What to do instead

Hold transferable points until you have a travel use, then transfer to the partner that prices your trip best. If you truly want simplicity and cash, earn a flat cash-back card instead, rather than collecting transferable points and cashing them out at a cent. The individual traps below, from Marriott-to-airline transfers to Pay With Points, are the most common ways people give up value. See when cash beats points.

See exactly what an award costs

Stop guessing at point values. Look up the real award price and live availability for a specific trip before you transfer.

Search award flights on seats.aero →

Frequently asked questions

What is the worst way to redeem points?
Gift cards, merchandise, and statement credits, which typically return a cent per point or less. Transferable points are worth far more moved to an airline or hotel partner for travel, so these menu redemptions waste most of their value.
Are points worth more for travel?
Usually yes, by a wide margin. Because award and cash prices are set separately, transferring points to a travel partner can return several cents each, versus about a cent for cash-equivalent redemptions like gift cards.
Should I cash out points if I never travel?
If you genuinely will not travel, you are better off earning a flat cash-back card than collecting transferable points and cashing them out at a cent. The transferable points only shine when redeemed for travel.

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Bryce Casson

Written by Bryce Casson, Founder of Cardocrat. About the author and how we rank cards.