Author Topic: Cashing out CC points before the cc shut down the loyalty programs  (Read 2233 times)

Catica

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With travel not happening any time soon because of the pandemic, I'm thinking of cashing out my points before they go away. I know Delta, Best Western and Southwest are limiting non-travel redemption options already.  I'm afraid I'll lose all my Chase UR points. How do you guys feel about it?
« Last Edit: March 28, 2020, 06:41:11 AM by Catica »

secondcor521

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Re: Cashing out CC points
« Reply #1 on: March 28, 2020, 06:29:54 AM »
My general strategy is to accumulate points/miles in currencies that I know will be useful, use them for their best purpose when possible, and avoid letting them expire.

For Chase URs, I would only cash them out if I were going to lose them, either by closing the parent card(s) or if there were going to expire.  And generally it's easy, with a little bit of hassle/attention/organization, to keep them from expiring.

In your shoes, I would probably take a wait and see approach, especially if the URs are expiring a year or so from now and if I wanted to travel.  I personally have domestic travel booked for September and international travel booked for December.  I'm hopeful that I'll be able to go on those trips.

If you think you're not going to travel anyway (i.e., if you think it's a reasonable possibility that travel restrictions will be lifted but you'll still not want to travel anyway due to your own reasons), then that'd make it more reasonable to cash out.

If you decide to cash out, I'd look at ways to cash out into gift cards.  Those are usually better redemptions than straight cash back, although I'm not sure offhand if Chase URs can be used that way.  They probably can; it's a pretty good currency.

Catica

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Re: Cashing out CC points
« Reply #2 on: March 28, 2020, 06:35:14 AM »
My general strategy is to accumulate points/miles in currencies that I know will be useful, use them for their best purpose when possible, and avoid letting them expire.

For Chase URs, I would only cash them out if I were going to lose them, either by closing the parent card(s) or if there were going to expire.  And generally it's easy, with a little bit of hassle/attention/organization, to keep them from expiring.

In your shoes, I would probably take a wait and see approach, especially if the URs are expiring a year or so from now and if I wanted to travel.  I personally have domestic travel booked for September and international travel booked for December.  I'm hopeful that I'll be able to go on those trips.

If you think you're not going to travel anyway (i.e., if you think it's a reasonable possibility that travel restrictions will be lifted but you'll still not want to travel anyway due to your own reasons), then that'd make it more reasonable to cash out.

If you decide to cash out, I'd look at ways to cash out into gift cards.  Those are usually better redemptions than straight cash back, although I'm not sure offhand if Chase URs can be used that way.  They probably can; it's a pretty good currency.
Thanks.  I was talking in terms of the pandemic and credit cards limiting or completely eliminating their loyalty programs.  Sorry I wasn't clear about that.  I edited my original post.
« Last Edit: March 28, 2020, 06:41:40 AM by Catica »

Accrual

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Re: Cashing out CC points before the cc shut down the loyalty programs
« Reply #3 on: March 28, 2020, 07:11:45 AM »
I had the same thought as you and redeemed my Chase UR points earlier this week.

secondcor521

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Re: Cashing out CC points
« Reply #4 on: March 28, 2020, 07:25:00 AM »
My general strategy is to accumulate points/miles in currencies that I know will be useful, use them for their best purpose when possible, and avoid letting them expire.

For Chase URs, I would only cash them out if I were going to lose them, either by closing the parent card(s) or if there were going to expire.  And generally it's easy, with a little bit of hassle/attention/organization, to keep them from expiring.

In your shoes, I would probably take a wait and see approach, especially if the URs are expiring a year or so from now and if I wanted to travel.  I personally have domestic travel booked for September and international travel booked for December.  I'm hopeful that I'll be able to go on those trips.

If you think you're not going to travel anyway (i.e., if you think it's a reasonable possibility that travel restrictions will be lifted but you'll still not want to travel anyway due to your own reasons), then that'd make it more reasonable to cash out.

If you decide to cash out, I'd look at ways to cash out into gift cards.  Those are usually better redemptions than straight cash back, although I'm not sure offhand if Chase URs can be used that way.  They probably can; it's a pretty good currency.
Thanks.  I was talking in terms of the pandemic and credit cards limiting or completely eliminating their loyalty programs.  Sorry I wasn't clear about that.  I edited my original post.

Ah.  I didn't even think of that possibility.  I know airlines are taking various steps to lock down things and avoid giving money back to customers (understandable since they're in a huge cash crunch right now), but I wasn't aware of any loyalty (or airline) programs just dissolving their customer's point balances.  Has this happened already, or is it just a concern?  (Specifics appreciated; I'll go do some research now anyway.)

secondcor521

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secondcor521

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Re: Cashing out CC points before the cc shut down the loyalty programs
« Reply #7 on: March 28, 2020, 08:11:05 AM »
Possibly relevant article:

https://thepointsguy.com/guide/maximizing-rewards-points-non-travel-redemptions/

My concern actually came from reading this: https://thepointsguy.com/news/loyalty-programs-limiting-non-travel-redemptions/

Ah, thanks.  Since the impetus is coronavirus-induced cash flow issues, I would expect this kind of problem to affect hotel and airline loyalty programs more than banks.  For a variety of reasons, I personally think that banks are currently fine and will continue to be fine.  So I would expect Chase UR / Citi TYP / AMEX MRs to be safe from this kind of treatment.  But that's just my opinion.

beltim

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Re: Cashing out CC points before the cc shut down the loyalty programs
« Reply #8 on: March 28, 2020, 08:18:46 AM »
I'm not worried about it.  The value for non-travel related redemptions are generally poor, so I don't care if they get rid of those.  I'm not worried about businesses shutting down their loyalty programs because that would be the fastest way they could kill their business.  I can't think of a way that a company would make me never want to fly with them or stay in their hotels than getting rid of my points.  Furthermore, it would economically be a bad idea.  Most loyalty programs, especially airline ones, are the most profitable part of their business.  And in the last huge decline in travel, there was a huge upsurge in travel benefits and loyalty programs in order to compete for the few people who were still traveling.

Catica

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Re: Cashing out CC points before the cc shut down the loyalty programs
« Reply #9 on: March 28, 2020, 01:06:05 PM »
I'm not worried about it.  The value for non-travel related redemptions are generally poor, so I don't care if they get rid of those.  I'm not worried about businesses shutting down their loyalty programs because that would be the fastest way they could kill their business.  I can't think of a way that a company would make me never want to fly with them or stay in their hotels than getting rid of my points.  Furthermore, it would economically be a bad idea.  Most loyalty programs, especially airline ones, are the most profitable part of their business.  And in the last huge decline in travel, there was a huge upsurge in travel benefits and loyalty programs in order to compete for the few people who were still traveling.
But if it's either that or nothing, isn't it better to get something?  My points are worth over $300.  If they get rid of the points program I won't get the $300. 

MasterStache

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Re: Cashing out CC points before the cc shut down the loyalty programs
« Reply #10 on: March 29, 2020, 03:32:14 PM »
Meh, since we had to cancel our spring break trip out west we have a lot of airline points. I have no intentions of cashing them out. I am not touching my Chase UR points. They are way too versatile.

Paul der Krake

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Re: Cashing out CC points before the cc shut down the loyalty programs
« Reply #11 on: March 29, 2020, 07:06:23 PM »
Terrible idea. Point programs are very valuable for airlines, they literally brag about how good a deal this is for them and how much goodwill it generates in their filings with the SEC. Even in the scenario where a company is forced into a merger, they'll keep the program.

Car Jack

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Re: Cashing out CC points before the cc shut down the loyalty programs
« Reply #12 on: March 30, 2020, 06:19:56 AM »
One of the hotels.....maybe Hilton.....sent an email saying that they were extending the expiration dates.  I have a few points with them but only get them once a year when I go for work training for a week.  So, sort of opposite.

MasterStache

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Re: Cashing out CC points before the cc shut down the loyalty programs
« Reply #13 on: April 04, 2020, 06:54:08 AM »
I have a feeling travel will be cheap for quite a while and loyalty programs are not going anywhere. Airlines, hotels, etc. are going to be desperate for business. Jacking up rates and shitting on loyalty programs is not the best way to go about this. Especially with money being tight with so many people. We are racking up Chase points as my SO just got approved for a 2nd CIP. And I just fell below 5/24.

topshot

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Re: Cashing out CC points
« Reply #14 on: April 04, 2020, 10:54:27 AM »
Thanks.  I was talking in terms of the pandemic and credit cards limiting or completely eliminating their loyalty programs.  Sorry I wasn't clear about that.  I edited my original post.
Didn't know this would be a concern and still not sure it is though I suppose some changes have been made. We have travel to Europe planned in May/June. I have gotten an email now that says I can reschedule up to 12 months out or cancel it altogether "without the usual fees to change your award flight or redeposit your miles".

What I fear is that if I reschedule that I will be charged more (in either miles or cash) since the same reward will likely not be available. Thus, I'm more likely to cancel altogether and search for new dates that I can get for the same miles.

Jack0Life

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Re: Cashing out CC points before the cc shut down the loyalty programs
« Reply #15 on: April 05, 2020, 10:07:07 PM »
With travel not happening any time soon because of the pandemic, I'm thinking of cashing out my points before they go away. I know Delta, Best Western and Southwest are limiting non-travel redemption options already.  I'm afraid I'll lose all my Chase UR points. How do you guys feel about it?

Chase points are not going anywhere.

Dicey

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Re: Cashing out CC points before the cc shut down the loyalty programs
« Reply #16 on: April 13, 2020, 02:54:33 PM »
With travel not happening any time soon because of the pandemic, I'm thinking of cashing out my points before they go away. I know Delta, Best Western and Southwest are limiting non-travel redemption options already.  I'm afraid I'll lose all my Chase UR points. How do you guys feel about it?

Chase points are not going anywhere.
Well, I redeemed our Chase points for HD gift cards, so mine are already gone... We only used the card for our last flip project, but were happy to get $1200 "back". To answer the real question, I think the chorus that says airlines are really going to need their loyal customers back is right. Of course, if the airlines go bankrupt, loyalty won't be an issue, will it?