Is it advantageous to purchase Rewards Points?

Is it advantageous to purchase Rewards Points?

Might as well answer the question right away: no, it will never be advantageous to buy miles and points.

No matter what promotion is done, the acquisition value will always be higher than the actual value of these miles and points.

However, there is an exception, with 2 conditions:

1. an imminent booking
2. few points or miles missing

In all other cases, it is more economical to obtain points and miles for free or at a lower cost through credit card or other promotions.

I’m going to go through the offers of the main loyalty programs… and more economical ways to get the missing points and miles!

Earning AIR MILES

Recently, a reader, Manon, asked me this question on Facebook:

Indeed, this is a “promotional offer” that AIR MILES reserves for certain members. I logged into my account and for me it’s still $0.30 per AIR MILE.

$0.30 under normal circumstances. $0.20 during the promotional period. Is it advantageous?

No! Why?

Take the redemption value of AIR MILES for “Cash rewards”:

95 AIR MILES = $10

The value of your AIR MILES here is therefore $0.11. So, this means that you buy a mile for 30 cents, but that same mile is actually worth 11 cents. For example, it’s like buying a car that costs $30,000 but is worth $11,000.

And even if you do manage to redeem your AIR MILES for “dream rewards” with a better rate, you’ll rarely get more than $0.24 per AIR MILE as we’ve already seen.

However, if you’re a hundred AIR MILES short of your goal and need them now, you can buy them.

If you’re missing just a few, there’s a tip. When you make a purchase at Shell, the miles are paid out within minutes of your transaction at the checkout.

Alternatives for earning AIR MILES

But when you need more, here are some alternatives:

• Promotions

Watch for promotions from AIR MILES and its partners. They come up regularly.

You will find these promotions on this page or directly in your mailbox.

Keep up to date by subscribing to our newsletter to find out about the latest promotions.

• Credit cards

Earning Aeroplan Miles

Aeroplan only allows you to purchase points if you are short on points to complete a booking.

The cost is $0.03 per Aeroplan point (excluding taxes). I estimate the value of an Aeroplan point at $0.02. So if you buy 1,000 Aeroplan points, it will cost $30 + tax for points that are worth $20.

Once again, it’s not worth buying them… unless you’re a little short!

Alternatives for earning Aeroplan Points

• Aeroplan partner promotions

Aeroplan has numerous promotions to earn miles from its partners. It’s easy to earn up to 5x Aeroplan points through the Aeroplan eStore, for example.

Credit cards

As always, the best way to earn Aeroplan miles quickly is through various credit cards offers:

Check out the top travel credit card to find the one that’s right for you!

Conclusion

As you can see, it’s not worth buying miles or points when, at the same time, there are numerous offers and promotions that allow you to earn as many, if not more, Aeroplan orAIR MILES miles!

Come to discuss that topic in our Facebook Group!

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