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What You Have To Know To MAXIMIZE Travel Rewards (Point Value vs. Cash Back)


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00:00:00.000 | You don't actually even need to have a points balance right now to take
00:00:04.480 | advantage of the arbitrage you can get booking a flight with points.
00:00:07.960 | In fact, transferring 63,000 points to LifeMiles when you could otherwise
00:00:13.640 | buy them for $825 means you're only getting 1.3 cents of value, which is
00:00:19.120 | nothing like the 8 cents you might be thinking when you go through this process.
00:00:23.960 | Let's assume you earned those 63,000 points on a 2X points card after you
00:00:29.220 | spent $31,500 to get the $825 you'd need to buy those same number of points
00:00:36.200 | with the same $31,500 of spend on a cash back card, you'd need to be earning
00:00:41.800 | at least 2.62%, which is really actually a funny number because it is almost
00:00:47.560 | the exact percent cash back you can get on all purchases with the Bank of
00:00:51.880 | America Premium Rewards card, assuming you have $100,000 at a Bank of
00:00:57.040 | America or Merrill Lynch account.