Reader mail: Is it worth $20 to get 1000 bonus miles?
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Reader Joanna writes:
Is it worth paying an extra $20 to get an extra 1000 miles? United has a deal where you pay the fee and get bonus miles. My husband and I are hoping to fly to France next year, and we could use the extra miles. What do you think?
$20 for 1000 miles means two cents per mile… that’s about what miles should be worth. That’s my minimum-value target for cashing in miles, though I try for higher. Most folks get a lot less per mile than that, if they cash in their miles at all.
(See here for a breakdown of how miles are valued.)
United’s offer is a discount to their normal “miles-for-sale” offer, so it’s an upgrade from that. But it’s not really a steal.
A year ago, Northwest Airlines started an identical offer. (They called it “supersizing.”)
My advice: Only pay up for this offer if you KNOW you are about to cash in miles for something, and you’re just shy of the “free” ticket. And use it only — only! — as a last ditch effort to bump up the account. Don’t use it to hoard. It’s not always easy to cash in your points, so you don’t want to just pay money willy-nilly to an airline. And if you’re effectively pre-paying for that “free” ticket. For most people, the offer isn’t worth it.
(gratuitous image of Three Mile Island lamp… Three MILE… get it… har har har…)


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August 31st, 2007 at 12:10 am |
You can get 2000 Northwest miles for $20 if using your NWA World Perks Visa to pay at the time of “super sizing” making the cost 1 cent per mile. Credit card sign up bonuses generally get you more miles even if paying an annual fee.
August 31st, 2007 at 3:34 pm |
1 cent per mile is solid. If I were a Northwest flyer, I might take them up on that.
August 6th, 2008 at 5:54 am |
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