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Fixed-value points and miles don’t get nearly as much attention as their transferable counterparts, but they are essential to any solid points and miles strategy. Diversity in loyalty programs and types of points is important, so we recommend you keep a stash of fixed-value points. Why? They can help you in situations where traditional airline miles or hotel points may fail.
In this guide, we'll walk through what fixed-value points are, the situations where they are helpful, and their downsides. In addition, we'll also highlight some of the best cards that earn them.
Page Contents
- What Are Fixed-Value Points?
- Fixed-Value Points Don't Lose Their Value
- Fixed-Value Points Are Easy To Redeem With Great Flexibility
- Earn Frequent Flyer Miles and Elite Status Credits
- Redeem Fixed-Value Points for Award Fees and Taxes
- Use Fixed-Value Points for Lodging That Isn't Part of a Rewards Program
- When To Not Use Fixed-Value Points
- Which Cards Earn Fixed-Value Points?
- Final Thoughts
What Are Fixed-Value Points?
Fixed-value points are points or “miles” (sometimes a bit of a misnomer) with a fixed value. This may be exactly fixed or mostly fixed. I say mostly fixed since there are a handful of currencies where your points can be redeemed within a limited range of value. A great example of this is JetBlue TrueBlue points. Other points have an exactly fixed value (e.g., cash-back earnings, where rewards are always worth 1¢ per point).
The key is this: with fixed-value points, you know what your points are worth. There's almost no guesswork involved. This is very different than flexible points, which have a variety of uses with a great range of values — or airline miles where you redeem them according to an established chart.
If you need a full explanation of all the different types of points and miles, you can check out this introduction to the different types of rewards points. Within fixed-value points, there are those offered by banks on their credit cards (more on that below) and also by rewards programs — such as Accor Live Limitless — where points are always used at a certain value to offset the cost of a hotel stay.
Benefits of fixed-value points
There are a number of upsides to earning points with a fixed value, namely:
- They are mostly immune to the devaluations common to frequent flyer programs.
- Their programs are simple and don’t require any specialized knowledge of award charts, partner redemptions, etc.
- There are no blackout dates; you can redeem your points at any time.
- You may still receive hotel elite status benefits and earn frequent flyer miles and earn qualification miles/nights/dollars when you redeem fixed-value points and miles
- It's easy to know the value of your points.
Drawbacks of fixed-value points
Of course, these points have their downsides as well:
- Price changes can make redemptions more expensive (e.g., when cash prices are high, you have to use more points).
- There is virtually no opportunity for “outsized value.”
You can always find tradeoffs between the types of rewards you earn. Unlike with more traditional frequent flyer miles, there's no way to use fixed-value points to book an international first-class flight for a fraction of the price. You'd burn an insane number of points if you did this, as the points cost is tied to the cash price. This is the primary downside of fixed-value points.
Let's explore the pros and cons of these points in greater detail.
Fixed-Value Points Don't Lose Their Value
Fixed-value points tend to retain their value, as they are less susceptible to rewards program devaluations. When Delta pulls one of its regular, unannounced award devaluations, the value of your SkyMiles goes down. Just a few years ago, you could book a one-way business class ticket to Europe for 70,000 SkyMiles. Now, it requires at least 170,000 SkyMiles. That's over a 140% increase in a few years. Delta has way outpaced inflation with its devaluations.
Fixed-value points, on the other hand, are simply worth their stated value when redeemed. If the value is 1¢ per point (as most are), it remains at 1¢ whether the award price in other programs goes up or down. Their value is tied to the cash price of the ticket. Yes, not all points are worth 1¢. The U.S. Bank Altitude™ Reserve Visa Infinite® Card is an exception, as those points are worth 1.5¢ each toward travel, but you get the point: they're a fixed value.
In a market of cheap airfares and hotel prices, the Bank of America® Premium Rewards® credit card comes into its own as a fixed-value rewards card. It allows you to purchase heavily discounted rooms, tickets, or even mistake fares and redeem the cost back as a statement credit. Even though you're paying “cash” with your card, the statement credit essentially lets you pay using your points instead.
Fixed-Value Points Are Easy To Redeem With Great Flexibility
If you like simplicity, fixed-value points are for you — they don’t require specialized knowledge of rewards programs, transfer partners, or award charts. You simply make the purchase on your card and apply the points as a statement credit against the travel charge. Easy peasy.
The flexibility of when you can redeem points is a feature as well. One of the significant drawbacks to earning traditional points and miles is that you’re handicapped by blackout dates and limited award availability. This is nearly always a problem around holidays. If your travel dates aren’t flexible, or you’re trying to travel around Christmas or Thanksgiving, you’ll often find no award availability. Or you'll see sky-high prices for mileage programs with dynamic pricing. Enter fixed-value points, where you can just purchase a ticket with your card and redeem the points toward a statement credit.
With fixed-value points, as long as there are still seats available to purchase, you use your points to book them. You can buy them using a fixed-value points card and redeem the points against the charge. Or you can book using an airline that offers “fixed-value” airline miles (e.g., JetBlue TrueBlue, Southwest RapidRewards, and BreezePoints).
This type of point also provides a great way to take advantage of mistake fares. They're also excellent for discount airlines that aren't part of a rewards program or don't have transfer partners. You can purchase the cheapest ticket available and still redeem points against the expense.
However, depending on the card or merchant, you'll run into some restrictions. With many cards, the merchant must code as a “travel” expense if you want to redeem points or miles against a charge. Moreover, depending on the redemption method, your points may be worth more or less (but still at a fixed value).
For example, American Express Memberships Rewards points are worth more toward flights and gift cards than cruises or statement credits. And many banks allow you to use points at a fixed value in their rewards portal, but how you do so might change the value proposition.
Related: Why You Should Never Redeem Capital One Miles Through Capital One Travel
Earn Frequent Flyer Miles and Elite Status Credits
A key upside to using fixed-value points is that you’re buying your room or ticket outright and not redeeming points or miles within a program for an award. You’ll still earn points/miles, plus elite status credits. This is a huge plus for anyone trying to attain or retain elite status. For frequent travelers, a strategy is to use award miles for your family when booking a vacation but pay for your own ticket using fixed-value points. This ensures you keep earning credit toward elite status.
You also should factor in the miles you’ll earn when paying cash for a ticket. These considerations will help you decide which currency to use. In some cases, the number of miles you earn from a ticket is substantial, especially for premium economy or business class deals.
Let's walk through this methodology in case it seems confusing. You're using points, right? You can redeem said points using a bank's travel portal. Whether it's a hotel night or a flight, redeeming points directly counts as “buying” the ticket. Fixed-value points are like using transferable points through a travel portal in that the ticket you buy is treated as if you bought it with cash (and in the case where you have to redeem as a statement credit, you did buy it with cash). The only difference is that transferable points have other redemption options.
Remember, when redeeming points through a travel portal, you'll earn miles and status qualification for flights here but not with hotels. Hotels require you to book directly to earn stay credits toward elite status. In this regard, you're better off paying the hotel directly, using your credit card, and then reimbursing yourself with points afterward.
Redeem Fixed-Value Points for Award Fees and Taxes
Redeeming fixed-value points or miles for award fees and taxes is a great way to further reduce the cost of award travel. Carrier-imposed fees and taxes can run into hundreds of dollars per ticket. Sometimes, it's worth paying them — usually when you can save a massive number of miles. The ability to wipe those charges out with points is a huge money-saver.
Just make sure you use a card that offers solid travel insurance protections.
Use Fixed-Value Points for Lodging That Isn't Part of a Rewards Program
Airbnb is a useful alternative to chain hotels when availability is slim, or there is little coverage in that area. Unfortunately, Airbnb doesn’t have a rewards program. Unlike Hilton or Marriott, you can’t redeem points for your stays. However, you can redeem fixed-value points against the expense of vacation rentals like Airbnb and VRBO that don’t fall under the umbrella of a rewards program. Just be sure to pick up a few SkyMiles or earn British Airways Avios when you book with Airbnb.
The same can be said about boutique hotels that don't participate in rewards programs. Since the elite status/rewards programs questions aren't an issue here, redeeming points can be a great opportunity to offset the cost of these stays.
When To Not Use Fixed-Value Points
Don't use fixed-value points for expensive fares—especially premium cabin fares that cost thousands of dollars. Instead, fixed-value points are best used for cheap domestic tickets, mistake fares, award taxes and fees, or vacation rentals and hostels. Generally speaking, you should use fixed-value points when the cash price of the item is low enough that you can’t justify redeeming frequent flyer miles or transferrable points.
Transferable points and traditional frequent flyer miles are more valuable when redeemed towards business- and first-class redemptions that can cost thousands of dollars or when cash prices are high but the cost of a flight in miles hasn't inflated.
Let's walk through a quick example. If a domestic award ticket is 25,000 miles or $187, you will get better value by redeeming 18,700 points at 1¢ per point. However, for an international business class award that costs 80,000 miles or $4,500, you’re better off spending 80,000 miles than dropping 450,000 fixed-value points. Run the numbers, and you'll see why you want to save your miles for business class.
Which Cards Earn Fixed-Value Points?
There are several well-known cards familiar to U.S. travelers, along with some others that may be less familiar. Here are some of the best credit cards that earn fixed-value points and miles:
| Card Name | Welcome Offer | Earning Rates | Annual Fee |
|---|---|---|---|
| Capital One Venture Rewards Credit Card | 75,000 Miles once you spend $4,000 on purchases within 3 months from account opening. | 2 Miles per dollar on every purchase, every day. 5 Miles per dollar on hotels, vacation rentals and rental cars booked through Capital One Travel. | $95 |
| Bank of America® Premium Rewards® credit card | Receive 60,000 online bonus points - a $600 value - after you make at least $4,000 in purchases in the first 90 days of account opening. | Earn unlimited 2 points for every $1 spent on travel and dining purchases and unlimited 1.5 points for every $1 spent on all other purchases. No limit to the points you can earn and your points don't expire as long as your account remains open. | $95 |
| Chase Freedom Unlimited® | Intro Offer: Earn a $200 Bonus after you spend $500 on purchases in your first 3 months from account opening | 5% on travel purchased through Chase Travel℠, 3% on dining at restaurants and drugstores, and 1.5% on other eligible purchases | $0 |
| Citi Double Cash® Card | $200 | Earn $200 cash back after you spend $1,500 on purchases in the first 6 months of account opening. This bonus offer will be fulfilled as 20,000 ThankYou® Points, which can be redeemed for $200 cash back. | $0 |
| U.S. Bank Altitude™ Reserve Visa Infinite® Card | Earn 50,000 bonus points worth $750 on travel. Just spend $4,500 in the first 90 days of account opening. | 5X points prepaid hotels and car rentals booked directly in the Altitude Rewards Center, 3X on eligible travel purchases and mobile wallet spending, and 1X on all other purchases | $400 |
We rate the Capital One Venture as our favorite in the fixed-value rewards category as it offers the best mix of earnings and travel protection. Plus, it sports a high-value signup bonus.
In addition to redeeming miles for a cent apiece, you can also transfer Capital One miles to a variety of airline and hotel programs. This makes these points potentially worth even more. Thus, the Capital One Venture is technically a flexible miles-earning card that also offers fixed-value redemptions.
- Earn 75,000 Miles once you spend $4,000 on purchases within the first 3 months of account opening
- 5X miles on hotels, vacation rentals and rental cars booked through Capital One Travel
- 2X miles on all other purchase
- Fee credit for Global Entry or TSA Pre✔® (up to $120)
- No foreign transaction fees
- $95 annual fee
- 5X miles per dollar on purchases through Capital One Entertainment (through 12/31/2025)
- 5X miles per dollar on hotels, vacation rentals and rental cars booked through Capital One Travel
- 2X miles per dollar on all other purchases
The same can be said of the Freedom Unlimited (Rates & Fees) and the Citi Double Cash. When combined with premium cards, the points earned on these cards can become flexible points. However, as stand-alone cards, the rewards earned are purely cash back.
Related: How To Combine Chase Ultimate Rewards Points Between Credit Cards
The Altitude Reserve deserves a hot mention here. Although it sports a $400 annual fee, you can redeem points for 1.5¢ per point on any airfare, hotel, or car rental service. This card also comes with $325 back in annual travel credits, effectively making the annual fee $75. It's an often-overlooked card that can provide great value.
Final Thoughts
Fixed-value points currencies, like those earned via the Bank of America Premium Rewards Card and Capital One Venture, have a fixed redemption value of 1¢ per point. But you can redeem them for a wide variety of travel expenses, ranging from cheap domestic airfares to vacation rentals or the cost of car rentals.
These points should be on your radar as part of a well-balanced rewards strategy. It's nice to have points you can use to pay for incidentals and travel expenses not typically covered by other points or miles. They're also great for situations where you’d otherwise get poor value using program-specific awards.
If you have any questions or a fixed-value tip you’d like to share, please reach out in the comments.
For rates and fees of the cards mentioned in this post, please visit the following links: Chase Freedom Unlimited® (Rates & Fees)
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