Choice Privileges, the rewards program for brands like Comfort Inn and Radisson (Americas), is currently running a promotion that allows members to purchase points at a discounted rate. While the prospect of snagging hotel stays on the cheap is enticing, it's crucial to analyze whether this offer truly benefits your wallet and aligns with your credit card reward strategy.

Decoding the Discount: Is 0.72 Cents a Good Deal?

The current promotion offers tiered discounts, with the highest 30% discount kicking in when you purchase 18,000 or more points. This translates to a cost of 0.72 cents per point. Whether this is a good deal depends entirely on how you intend to redeem those points.

Before buying, research the cash value of rooms at hotels where you would realistically stay. If a room typically costing $100 requires 12,000 points, you're effectively redeeming points at a value of 0.83 cents per point ($100 / 12,000 points). In this scenario, buying points at 0.72 cents each could be worthwhile. However, if you find redemptions that give you less than 0.72 cents of value, then buying points at this rate doesn't make sense.

Strategic Credit Card Use for Point Purchases

If you decide to purchase Choice points, maximize your credit card rewards by using a card that offers bonus points on travel or everyday spending. Here are a few options to consider:

  • Travel Rewards Cards: Many travel credit cards offer bonus points on hotel purchases. Check your card's rewards structure to see if Choice point purchases qualify.
  • Cards with Broad Spending Categories: Cards that offer bonus points on everyday spending, like grocery stores or gas stations, can be a good alternative if your travel card doesn't offer a bonus for hotel-related transactions. This will help you earn additional rewards on the purchase.
  • Consider a New Card Bonus: If you're close to meeting the minimum spending requirement on a new credit card, purchasing Choice points could help you reach that threshold and unlock a valuable welcome bonus. Just be sure the purchase aligns with your budget and travel plans.

Remember to avoid using a card with a high APR if you can't pay off the balance immediately. The interest charges could negate any savings from the discounted points.

Important Considerations Before Buying

  • Expiration Policies: Choice Privileges points expire after 18 months of inactivity. Make sure you have a plan to earn or redeem points within that timeframe to avoid losing your investment.
  • Dynamic Pricing: Hotel reward programs often use dynamic pricing, meaning the number of points required for a stay can fluctuate based on demand. The redemption value you calculate today might not be the same tomorrow.
  • Limited Availability: Award availability can be limited, especially during peak travel seasons. Don't buy points with the expectation of booking a specific hotel on a specific date.

RewardSmart's Recommendation

Buying Choice points at a discount can be a smart move, but only if you've done your homework. Calculate the potential redemption value for your specific travel plans, factor in the cost of financing the purchase, and ensure you can use the points before they expire. Use a rewards credit card to maximize your earnings on the purchase, and always prioritize paying off your balance in full. If all these factors align, then this could be a rewarding opportunity.