With the prevalence of credit card and airline reward programs, paying for flights with reward points has become a common option for consumers, especially for the travel hackers who search for the best possible deals. One of the trickiest aspects of reward programs is knowing when to use your reward points and when to pay in cash. There are a few ways to make the decision easier.

1. Cash or Credit Card Points: The
Best Way to Pay for Your Flight
With the prevalence of credit card and airline reward programs,
paying for flights with reward points has become a common
option for consumers, especially for the travel hackers who search
for the best possible deals. One of the trickiest aspects of reward
programs is knowing when to use your reward points and when to
pay in cash. There are a few ways to make the decision easier.

3. The Availability of Award Tickets
Paying for a flight with reward points isn’t always an option, as
many airlines have blackout dates where award tickets aren’t
available. Before doing the math on whether it makes more sense
to pay in cash or reward points, make sure paying in reward points
is even an option for the flight you want.
The Value of Reward Points
The easiest way to decide how you should pay for your flight is by
setting a value for your reward points. As of 2012, a standard value
for reward points was 1.4 cents, based on the average cost of a
domestic flight at the time ($361) compared to the minimum
number of points for a domestic ticket (25,000). Neither of those
numbers has changed much since 2012, so this is still an accurate
point value. That also means that it’s best to avoid using your
reward points for fares lower than $361, as you’ll probably overpay
in points.
While 1.4 cents is a good baseline value, you may value your
reward points differently. Those who know how to get maximum
value from their points, or those in travel-friendly reward
programs, may attach a higher value to each reward point.
Elite Status Tiers
One situation where it makes sense to pay in cash instead of points
is when you’re approaching an elite status tier with the airline.
These tiers offer significant perks, but you have to pay for a certain
amount of fares annually to stay in them. If you’re close to moving
up, pay in cash.

4. Reward Points — The Superior Option for Business
Class and First Class
As a general rule, you get more value out of your reward points
when you put them towards higher-priced tickets, especially
business class or first class tickets. It makes sense to use your
points for those type of tickets whenever possible. However, on
flights that are only a couple hours long, economy is usually the
best value because the flight isn’t long enough to maximize the
benefits of an upgraded seat.
Consider your future travel plans before booking a ticket with
reward points. If you plan to take a cross-country or international
trip soon, you may want to save your points for that.
Final Thoughts
There’s no right or wrong when it comes to using cash or reward
points. If you are short on cash, use your reward points. That
being said, it’s typically best to save your reward points for the
more costly flights and pay cash for cheaper or shorter flights.
Eugene Schneur is a real estate mogul and the co-founder of
Omni New York.