Author Topic: Selling credit card miles/reward points to a broker?  (Read 3701 times)

Cwadda

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Selling credit card miles/reward points to a broker?
« on: October 16, 2015, 09:01:21 AM »
In churning credit cards, a lot of people end up getting reward points and miles. The points are redeemable for gift cards or statement charges, but the rates are pretty abysmal. The best value is to book flights that would normally cost a lot out of pocket. From what I've read, the best valued flights are ones that are international - but not everyone will have need to book these types of flights. Especially if you're churning credit cards and closing them soon after.

Another option is to sell points to a broker (pretty much acting as a travel agency) who will proceed to use your points to book a flight for someone else. They can give 1-1.3 cents per mile/point in cash. This is not illegal, but violates terms and conditions and could result in your account losing all points, getting frozen, and you getting kicked from the rewards program.

What is your opinion on selling (and buying for the matter) credit card rewards points to a private agency? Any horror stories?

Retired To Win

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Re: Selling credit card miles/reward points to a broker?
« Reply #1 on: October 16, 2015, 09:02:49 AM »
Following! (I know nothing about this and would like to learn.)

terran

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Re: Selling credit card miles/reward points to a broker?
« Reply #2 on: October 16, 2015, 09:09:32 AM »
How much better than a 2% of spend/churn return would this get you? If not much, it seems like it would be easier to just go with a regular cash back card.

Cwadda

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Re: Selling credit card miles/reward points to a broker?
« Reply #3 on: October 16, 2015, 09:22:58 AM »
How much better than a 2% of spend/churn return would this get you? If not much, it seems like it would be easier to just go with a regular cash back card.
This more so concerns when you get a credit card and "Spend $3000 in 3 months, get 25,000 bonus points"
Basically just amassing bonus points and then selling them.

NotJen

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Re: Selling credit card miles/reward points to a broker?
« Reply #4 on: October 16, 2015, 09:24:30 AM »
I'm not interested - I don't want to do anything that would jeopardize my relationship with a credit card issuer (besides opening and closing cards until they get tired of me), and this seems pretty shady.

Plus, I already get at least 1 cent per mile/point, so I don't see the value of doing this.

If I'm not going to use a particular airline, I just don't sign up for the card.   I focus my efforts on the cards which actually bring me value.  For example, I never fly Southwest because they don't service my local airport, and therefore I'm uninterested in their cards.  Some programs have approved means of transferring their points elsewhere - I think redeeming AmEx member rewards for a statement credit is a poor use of the points - but booking flights through them, or transferring to Delta or British Airways gets you a better value.

Cwadda

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Re: Selling credit card miles/reward points to a broker?
« Reply #5 on: October 17, 2015, 02:09:46 PM »
Bump for more opinions.

Rubic

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Re: Selling credit card miles/reward points to a broker?
« Reply #6 on: October 17, 2015, 07:20:36 PM »
What is your opinion on selling (and buying for the matter) credit card rewards points to a private agency? Any horror stories?

Almost everyone in the churning community will tell you this is a very bad idea.  Don't do it.  You're 21 and don't want to risk a lifetime ban from Chase, Citi, etc.

If you're acquiring miles/points that you can't use, you're doing it wrong.  Focus on the cards that are in alignment with your plans.  Apply, spend, redeem, and repeat (subject to their terms of service).  I've acquired the equivalent of ~$9K in points/miles/cash this year without ever violating the banks' terms of service and I know people who've done far more.
« Last Edit: October 17, 2015, 07:22:21 PM by rubic »

Cwadda

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Re: Selling credit card miles/reward points to a broker?
« Reply #7 on: October 18, 2015, 08:19:14 PM »
What is your opinion on selling (and buying for the matter) credit card rewards points to a private agency? Any horror stories?

Almost everyone in the churning community will tell you this is a very bad idea.  Don't do it.  You're 21 and don't want to risk a lifetime ban from Chase, Citi, etc.

If you're acquiring miles/points that you can't use, you're doing it wrong.  Focus on the cards that are in alignment with your plans.  Apply, spend, redeem, and repeat (subject to their terms of service).  I've acquired the equivalent of ~$9K in points/miles/cash this year without ever violating the banks' terms of service and I know people who've done far more.

When you put it into the perspective of a lifetime ban from a credit card company at my age, it makes a lot of sense. At the absolute least, I can get $260 in cash for the points, whereas the mileage broker is offering $635. I don't think $375 is worth a lifetime ban from a CC company. Further, I should be able to get at least a $500 value for the points. Again, the extra $135 isn't worth it.