How to use points and miles to give gifts with zero out-of-pocket cost

Editor’s note: This is a recurring post, regularly updated with new information.

Each holiday season, some consumers find that they have no extra money for gifts. If you’re in this situation, you could put your holiday purchases on a 0% interest credit card if you know you can pay the charges off during the introductory period.

However, if you have points or miles tucked away in your loyalty accounts, a better option than taking on debt may be to redeem your rewards for gifts. After all, these rewards can serve as a lifeline and help you put a little magic under the tree during difficult times.

Here at TPG, we’ve received numerous questions about using points and miles for gifts over the last few years. Many of these readers aren’t interested in giving the gift of travel. Instead, they want to give more traditional gifts like toys and gift cards.

For example, TPG’s Summer Hull got this message from one of her followers on Instagram:

Do any rewards programs allow you to use points for plain Visa gift cards… [?] I lost my job and am looking for a way to utilize rewards for Christmas giving to kids.

We typically don’t recommend redeeming points and miles for non-travel redemptions since you’ll usually get a higher value when you redeem for travel. However, that math means nothing if cashing in some points for non-travel gifts can put smiles on your loved ones’ faces at the end of a trying year.

If you need to redeem points for some presents this year, here are some of the best ways to accomplish that goal.

Redeem points for gift cards

There are two primary ways to use gift cards purchased with points and miles as holiday gifts.

One option is to redeem your points or miles for gift cards to merchants like Target or Best Buy. Then, you can use those gift cards to purchase gifts at these stores.

The other option is to give the gift card as the gift itself. However, some programs only mail physical gift cards to your home address. That means you’d need to pass the gift card to your intended recipient once it arrives at your address. Other programs only offer electronic gift cards.

As you’ll see below, some programs provide a better return for your points than others. If you want to redeem your points or miles for gift cards, here are some options to consider:

Citi ThankYou Rewards: Redeem at a rate of 1 cent per point.
Chase Ultimate Rewards: Redeem at a rate of 1 cent per point.
Capital One miles: Redeem at a rate of 0.8 cents per mile.
American Express Membership Rewards: Redeem at a rate of 0.7 to 1 cent per point for merchant-specific gift cards and 0.5 cents per point for American Express gift cards.
Southwest Rapid Rewards (only for Rapid Rewards cardholders): Redeem at a rate of 0.33 to 0.67 cents per point.
Marriott Bonvoy: Redeem at a rate of 0.4 cents per point for Marriott gift cards and 0.2 to 0.33 cents per point for other gift cards.
Wyndham Rewards: Redeem at a rate of 0.33 to 1.14 cents per point.
Choice Privileges: Redeem at a rate of 0.31 cents per point.
United MileagePlus: Redeem at a rate of 0.3 cents per mile.

Programs may occasionally offer sales that let you redeem fewer rewards for select gift cards. But, out of all the options discussed above, only American Express Membership Rewards and Choice Privileges allow you to redeem points for gift cards that aren’t merchant-specific.

The reader who wrote to Summer might consider redeeming Amex Membership Rewards points for Amex gift cards at a rate of 0.5 cents per point. However, as you’ll see in a subsequent section, redeeming for a statement credit at a rate of 0.6 cents per point would be a better option if flexibility is required. Otherwise, the reader could get up to 1 cent per point by redeeming for select retailer-specific gift cards.

Shop with points and miles

Some programs also allow you to redeem points and miles for merchandise. Here are some options to shop for holiday gifts using points and miles:

Chase Ultimate Rewards: Shop for Apple products through the Apple Ultimate Rewards Store at a rate of 1 cent per point, or pay with points at Amazon or PayPal at a rate of 0.8 cents per point.
American Express Membership Rewards: Pay with points at checkout when shopping with various merchants (including Amazon, Best Buy, Dell, Grubhub, Newegg, PayPal, Rite Aid, Saks Fifth Avenue, Seamless and Staples) at a rate of 0.7 cents per point; shop with Membership Rewards points at a rate of 0.5 cents per point.
Bilt Rewards: Pay with Bilt points on Amazon at a rate of 0.7 cents per point; redeem points for merchandise or Bilt Collection items.
Citi ThankYou Rewards: Use points for purchases at the 1-800-Flowers family of brands, Amazon, Best Buy, bp/Amaco, CVS, Dollar General, PayPal, Shell, Walgreens and Walmart by selecting “Yes” when the checkout screen asks whether you’d like to redeem points (there are purchase minimums, and some items are excluded).
Capital One miles: Redeem miles for products through the Capital One merchandise or Capital One Apple stores, or use miles for purchases at Amazon and PayPal.
Hilton Honors: Use points for purchases at Amazon.
United MileagePlus: Shop for merchandise using your miles at United MileagePlus Awards, or redeem miles for a magazine or newspaper subscription.
Southwest Rapid Rewards (only Rapid Rewards cardholders): Shop for merchandise using your points at Southwest Rapid Rewards More Rewards.
Marriott Bonvoy: Shop for merchandise using your points at Marriott Bonvoy Shop with Points.
IHG One Rewards: Shop for merchandise using your points through the IHG catalog, or use points to buy select games, software, movies, eBooks, eMagazines and eNewspapers through IHG digital rewards.
Choice Privileges: Use your points for select magazine subscriptions through MagsforPoints.
Wyndham Rewards: Shop for merchandise using your points in the Wyndham Rewards online points catalog.

Before redeeming for merchandise, check whether there will be shipping costs on your order and consider the shipping timeline. After all, you don’t want to use your points and miles for holiday purchases and not get the gift in time.

Redeem for cash rewards

Finally, you can redeem points and miles in some programs for statement credits or cash-back rewards. Here are your options with some of the most popular programs:

Chase Ultimate Rewards: 1 to 1.5 cents per point (depending on which card you hold and the purchase category) through Chase’s Pay Yourself Back feature for a statement credit to cover purchases within the last 90 days; you can also get 1 cent per point for cash-back rewards to your checking or savings account
Citi ThankYou Rewards: 1 cent per point for cash-back rewards, including a statement credit, direct deposit or check by mail
Capital One miles: 1 cent per mile for a statement credit to cover travel purchases in the last 90 days or 0.5 cents per mile for other statement credits or a check to your address
American Express Membership Rewards: 0.6 cents per point for statement credits
Bilt Rewards: 0.55 cents per point for statement credits

If you have an eligible Chase card and have charges already on your card that are eligible for Chase’s Pay Yourself Back feature, you could reimburse yourself for those purchases and use the money to buy holiday gifts.

Bottom line

On paper, redeeming points or miles for holiday gifts will provide less value than redeeming for travel. However, if you don’t have extra spending money this holiday season, cashing in your points or miles may be the best way to buy holiday gifts. If you go that route, consider which of the above methods will provide the best value for the rewards you have and the gifts you want to give.