Is it a waste to use HSBC RewardCash to settle the bill? [duplicate]

Question

I usually use the accumulated reward cash towards settling the bill at the end of the month. I heard that it is better to convert it to Asia Miles rather than using it to offset the bill. Is there a better way to use HSBC Reward cash? What other benefits are there in using reward cash for other purposes. I'm from Hong Kong btw

Answer 1

If the choice is between points, cash or something else like a gift card that includes a bonus, then you have to calculate what works best for you.

Those points on an airline cost money and have a cash equivalent. Some people fly enough that the airline miles works for them. Others never generate enough usage to make them worth very much. You do have to factor in how long it takes to generate the miles to get the free ticket or upgrade. You also have to make sure the rules to block certain dates, or cities, degrade the benefit.

Cash is always good.

Some people find that they can also get a gift card from a store that comes with bonus value. They can either get a $100 statement credit or a $125 gift card. The issue for some is that it invites unnecessary spending. They buy something at store x because they have the gift card, but it would have been cheaper at store Y.

For example I have a choice with my grocery store points: 100 points gets you $1.00 or 10 cents a gallon at gas station X. When we were filling a vehicle with a 17 gallon tank, then the gas savings made sense. But when the main vehicle is a hybrid with a 10.5 gallon tank, cash was almost always better. Plus the brand wasn't the least expensive, so that had to be factored into the math.

I have found that for me and my family cash was always the best and easiest option when looking at miles vs cash. Always check the rules to make sure that points/miles don't expire or that will be wasteful.