6 Ways to Redeem Credit Card Rewards, Ranked by Value

Most card rewards can be used in several ways. To redeem means to cash in your rewards. The same points can be worth different amounts each way. This guide ranks the six common ways to redeem credit card rewards. It shows what each one paid in our examples. It also gives one formula to check any redemption yourself.

To compare options for your own balance, open the points redemption methods calculator. It ranks the same points across five ways to use them.

First, find what your points are worth as cash

Start with what you get by taking the rewards as cash. This is the least you should accept for your points. That is a statement credit, which lowers your card bill, or a deposit into a bank account.

Here is what Chase says on its Freedom card pages, as of November 2026:

• "Cash Back rewards are tracked as points and each $1 in Cash Back rewards earned is equal to 100 points."
• "There is no minimum to redeem for cash back."
• "When using points at checkout, each point is worth $0.008."

So on these cards, 100 points cash out at $1, or 1 cent per point. Paying with the same points at checkout gives 0.8 cents per point.

Other programs set their own values. Chase's own pages say "Redemption values for reward options vary." Look up your program's cash-out value before you do anything else. That number is the one every other option must beat.

If your card pays plain cash back, you are done. Cash back is worth its face value, so $1 is $1.

One formula for every redemption

Cents per point = (cash price - fees you still pay) / points used x 100

Cents per point tells you how many cents one point is worth in that use. Higher is better.

The cash price is what you would pay in dollars for the same thing. Fees you still pay are any taxes or charges added on top of the points.

Example: a flight costs $600 in cash. As an award, it costs 40,000 points plus $50 in taxes and fees.

($600 - $50) / 40,000 x 100 = 1.375 cents per point.

If you cashed out those 40,000 points at 1 cent instead, you would get $400. The award saves you $550 that you would have paid for the flight. So in this case, the award gives $150 more than cash.

The six ways, ranked

The table uses a balance of 50,000 points. Values marked "example" are example values, not fixed rates. Real values move and depend on your program and booking. See our observed points values for what we have measured.

The order shows which ways can pay the most, not what each one always pays. Transfers rank first because they can pay the most. They can also pay less than cash. The issuer travel site ranks second because some cards pay more than cash there. At 1 cent it ties with cash. Statement credits and deposits share third place. The next sections explain each one.

1. Transfer to an airline or hotel partner

Some cards let you move points to airline or hotel programs. Capital One's Venture page says you can "transfer your miles to your choice of 15+ travel loyalty programs." Chase's Sapphire Preferred page says you can transfer "to leading frequent travel programs."

A transfer can pay well on a costly flight or hotel. It can also pay less than cash. Example: a hotel night costs $200 in cash or 25,000 points. ($200 - $0) / 25,000 x 100 = 0.8 cents per point. That is less than cashing out Chase points at 1 cent.

Two rules keep you safe:

• Find the award first. Confirm the seat or room exists before you move points. Our guide on finding award space before you transfer shows how.
• Assume you cannot move points back. Most programs do not reverse a transfer. Check your program's terms.

2. Travel booked through the issuer's site

Card issuers run their own travel sites, such as Chase Travel and Capital One Travel. You book flights, hotels or cars and pay with points.

The value per point depends on your card. Some cards pay more per point here than for cash. Others pay the same. Check your card's terms. Also compare the site's price with booking direct. A higher price on the issuer's site lowers your real value.

Booking through an issuer's site may mean you do not earn hotel or airline status credit. Our guide on when a travel site booking costs you status covers this. For a side-by-side of sites and transfers, read travel portal vs transfer partner.

3. Statement credit or bank deposit

These two are the simplest. A statement credit lowers your card bill. A deposit sends money to your bank account. On Chase cash back cards, both give 1 cent per point, with no minimum.

Capital One's Venture page says you can "cash in your miles for a statement credit or a check." It does not state the cash value per mile on that page, so check your account.

This is the least most people should accept. If you are not sure you will use points for travel, cashing out is a safe choice.

4. Gift cards

Many programs sell gift cards for points. The value is often close to the cash value, but it varies by program and store.

A gift card only helps if two things are true. It gives more per point than cash, and you will spend it at that store. A gift card you never use is worth nothing.

5. Pay with points at checkout

Some programs let you pay with points at an online store's checkout. Chase says "each point is worth $0.008" when you use points at checkout.

Here is what that costs on 50,000 Chase points:

• Cash out as a statement credit: 50,000 / 100 = $500.
• Pay with points at checkout: 50,000 x $0.008 = $400.

That is $100 less for the same points. For a store purchase, you can usually pay with your card and then cash out points to cover it.

How to pick, in four steps

1. Find your cash-out value. This is the least you should accept.
2. Price what you want in cash. Use the real price you would otherwise pay.
3. Work out cents per point. Use the formula above.
4. Use the option only if it beats your cash-out value. If it does not, cash out.

The award vs cash calculator checks one booking. The points vs cash calculator compares a points value against taking cash.

How you use your points changes which card is best

How you use your rewards changes which card pays you more. If you will always cash out, compare cards on their cash rates. A flat 2% cash back card may then match or beat a points card. If you will transfer for travel, a points card can pay more.

Read points vs miles: what is the difference and flat-rate vs bonus category cash back to weigh card types. To test two cards on your own spending, use the card vs card calculator.

Sources

• Chase Freedom Unlimited card page: cash back points value, cash-out options, pay with points value. Checked November 2026.
• Chase Sapphire Preferred card page: redemption options and transfers. Checked November 2026.
• Capital One Venture card page: redemption options and transfers. Checked November 2026.
• SwitchWize observed points values: measured values per program.

This is educational information, not personal financial advice. Redemption values change. Check your program's current terms before you redeem.