A Guide to American Express Membership Rewards
If you're an American Express credit card holder, you can rack up Membership Points, which you can use to redeem for a host of things: Amex Travel, statement credit, or gift cards, to name a few. These valuable points can be optimized by getting clued into your options and their redemption rates.
Here's what to know about American Express Membership Rewards and how to make the most of them.
American Express Membership Rewards at a Glance
American Express Membership Rewards is the currency for Amex points.
There's a variety of ways you can redeem your points.
To make the most of the program, keep in mind the ways you can scoop up points and also tips on redeeming them.
What Are American Express Membership Rewards?
American Express Membership Rewards is the popular points rewards program of American Express. If you have an American Express credit card, you can earn points by using your cards on eligible purchases.
Depending on the card, you can earn extra Membership Rewards with an introductory bonus or points multipliers in certain spending categories. Certain cards give you the option to scoop up points in bonus categories.
Depending on the card, you can redeem your rewards points differently. American Express also has partnered with 21 airline and hotel partners.
Redemption Options
Amex Travel: You can book flights, hotels, and car rentals through Amex's travel portal.
Statement credit: You can convert your Membership Rewards to a statement credit.
Online shopping: Through the Amex Pay with Points Program, you can use your Membership Rewards to shop online at your favorite retailers.
Gift cards: Amex has nearly 100 retailers from which you can choose.
Top Partners
Travel transfer partners: Amex has partnered with a grand sum of 21 travel transfer partners, which include 18 airline and 3 hotel partners.
Grubhub: Through American Express's partnership with Grubhub, you can use points to pay for food delivery. Statement credit will be applied within two to four business days.
How to Earn American Express Membership Rewards
Multiplier Points
You can earn multipliers of points by spending in different spending categories, such as airlines, hotels, and restaurants. American Express travel cards can feature ways to scoop up even more points on travel-related purchases, and other cards give you opportunities to enjoy, say, 4x points on restaurants and grocery spending.
You'll want to look for a cap on purchases each year. For instance, up to $500,000 yearly on 5x points on hotels. While the caps are typically high, it's good to be aware of what rewards-earning possibilities are available.
Welcome Bonus Points
Many American Express credit cards feature welcome bonus points. For example, you can earn up to 125,000 welcome points after spending $8,000 within the first six months. There is a wide range of welcome bonus offers, so look for one that fits your spending and planned purchases.
Unlimited Points
Besides the multiplier points, you can earn flat cash-back points on other categories and types of purchases. These usually have a lower value—say 1 rewards points per dollar. However, no bounds exist on how many points you can scoop up.
Points Through Amex Offers
Through Amex Offers, some cards give you the opportunity to rack up extra points for purchases at particular retailers. These might be as high as 20x points or cash back in your statement credit — so it's a good idea to keep a lookout for these lucrative points-earning opportunities.
You'll need to sign up for Amex Offers, and as the offers change, it's helpful to log into your account through your computer or app and look for offers you'll want to take advantage of. It's also a good idea to pay attention to spending minimums.
How to Use American Express Membership Rewards
Find a Card That Rewards Your Highest Spending Category
To maximize Amex Express Rewards, find a card that rewards your highest spending category, such as dining, travel, or supermarkets, explains Daniel Masuda Lehrman, a CFP® and founder of Masuda Lehrman Wealth.
Case in point: Masuda Lehrman's credit card spending is mostly on dining out and groceries, so he uses the Amex Gold card, which features 4x points and dining out, to maximize his rewards.
Make the Most of Other Benefits
Tap into any perks and benefits that can offer more valuable savings, suggests Masuda Lehrman. For example, Amex Gold provides a $10 Uber credit each month, a $10 Grubhub credit each month, a $7 Dunkin credit, and a $100 annual Resy credit. Making it a point to use your credit can save up to $120 in savings with these different retailers.
Transfer Your Points to a Travel Partner
Masuda Lehrman says some cards in the Amex family, such as the Gold and Platinum cards, allow 1:1 point transfers to travel partners like Hawaiian Airlines and All Nippon Airways.
"Transferring your Amex points to book travel directly with the airline’s rewards program can unlock incredible value," says Masuda Lehrman. "For example, I recently transferred 60,000 points to Hawaiian Airlines and was able to book a business class flight to Japan."
Avoid Overspending
Masuda Lehrman recommends not overspending in pursuit of points. Stick to your budget and prioritize responsible spending over credit card rewards." It's a dangerous cycle to get caught up in.
For example, if you have an Amex card that has points multipliers for restaurant and grocery spending, commit to spending only on restaurants and groceries and pay off the balance in full each month.
Make Sure the Perks Offset the Fees
Also, make sure the annual fee is worthwhile. Do a bit of research and planning before you choose your card, and have a plan around how you intend to use it. You'll ensure you're getting your money's worth by making the most of benefits and other valuable perks.
Promotions and limited-time offers can result in net savings and lucrative points-earning possibilities. Be sure to check regularly for these offers, says Masuda Lehrman. "For example, Amex often has promotions for point transfer bonuses, which can significantly enhance the value of your points."
Check for Promotions
Regularly check for promotions and limited-time offers, as Amex often has offers for point transfer bonuses, which can significantly enhance the value of your points, says Masuda Lehrman. You can even be nerdy about it and schedule some time each month to see what new offers are popping up.
Frequently Asked Questions
How Much Is One Amex Membership Point Worth?
It depends on how you redeem your points. Statement credit is 0.6 cents per point, booking travel through the Amex Express Travel portal is 1 cent per mile, and transfer points to a travel partner vary, but is usually a 1:1 ratio.
How Much Are 5,000 Amex Membership Points Worth in Cash?
If you're redeeming your Amex Membership points for statement credit, the points value is 0.6 cents per point, so 5,000 Amex membership points are worth $30 in statement credit.
How Many Amex Points Do I Need for a Free Flight?
It depends on the cost of the flight. If you book travel through the Amex Express Travel portal, there is usually a 1:1 redemption ratio. So, a $500 flight requires 50,000 Amex points.
