I started this post in December, 2014 asking a question if you would buy United Airline Miles at 1.8 cents a piece. It’s pricey, I know. You would need to value 1 United mile at least $.018 in order to make that kind of purchase. So I looked around what everyone else’s valuation were:
Since then, things changed a bit and I have been able to buy it for nearly a penny a piece. Traditionally, I like to buy my miles under a penny each. This means I’ve made some money if the points were worth at least a penny. I’ve bought a ton of American Airlines miles for a penny. I’ve also generated a stash of Ultimate Rewards points just shy of a penny so I can redeem the points at Hyatt.
So here’s how to do it.
MyPoints is another portal where you collect their proprietary points. What you can do is redeem them for various gift cards, generally speaking the value of each point if you do that is less than $.007/point. However, MyPoints offers you the option to redeem for United miles. 1 MyPoints point is worth .42 United miles.
Now, for regular readers, you already know my modus operandi is gift card churning. And as luck would have it, MyPoints sells gift cards! Each gift card you purchase, will allow you to earn MyPoints points. Remember how I tell you to use a certain credit card to determine the MCC? If you do your homework, you will find out that MyPoints store is categorized as an electronics store. Guess what? US Bank Cash+ has a 5% cash back category for electronics! This is why I was happy that the Club Carlson card devalued. I was hemming and hawing if I should sign up for it, but after it devalued, I am going to try and sign up for another Cash+ card. This would open the opportunity for me to spend $4000/quarter. I’m looking at manufacturing at least 120,000 United Miles per year doing the 2 cards.
I’ve spelled out a lot of the tougher parts to buying cheaper United miles in this post, which I haven’t been doing lately. You’ll need to figure out which gift card exchange, Cardpool, Giftcard Zen, or Raise to sell on. In addition, you’ll also need to figure out which cards to buy. That piece will be the easiest, just do some value engineering and you’ll be able to figure out the average cost per mile.