WorldPoints have received quite a bit of press (like most rewards points and bonuses) but I think that there is a lot of old information out there and wanted to publish some current information.
The Truth about Bank of America WorldPoints:
Here's the essential information you should know about BofA Worldpoints.
Earning Points Basics
Different cards earn different rewards rates:
· Bank of America Rewards American Express: 1 point per dollar
· Bank of America Rewards Gold Amex: 1.25 points per dollar
· Bank of America Accelerated Rewards Amex: 1.25 points per dollar
· Bank of America Rewards Platinum American Express: 1.5 points per dollar
What WorldPoints are worth:
WorldPoints can be worth 1.5 cents or more if you use them wisely. We don’t recommend using your points for cash or small dollar amount gift cards because you’ll be surrendering your points for less than 1 cent. (1 cent per point is our benchmark for knowing if you’re getting good value for your points)
|
Cash |
0.5 – 0.8 cents |
|
Retail Gift Cards |
0.7 – 1 cent (for $250 gift cards) |
|
Car Rentals |
1 cent |
|
Hotel Stays |
1 cent |
|
Airfare |
1-1.6 cents (no residual fees or taxes!) |
As you can see the very best deal is to use them for airfare, and like Chase Ultimate Rewards and Discover Miles, WorldPoints can be applied towards the entire cost of your travel expense. This is huge compared to some other airline specific programs. A good friend of mine took advantage of the 100,000 British Airways Miles offer this year so he could take his wife to Europe only to find out that the taxes and fees totaled almost $500 per ticket… so much for free rewards travel! With WorldPoints you won’t have to worry because your points go towards the entire expense including any peripheral charges like fuel surcharges.
No more misinformation:
Those are the basics, but there has also been a lot of bad information about Worldpoints. Here’s the truth:
Truth #1: Points can be redeemed in small amounts.
It used to be that WorldPoints could only be redeemed in large 25,000 increments. It was a huge inconvenience and luckily BofA figured out that it was a glaring weakness compared to other rewards programs. You can redeem points
Truth #2: Points do expire, but not for 5 years.
A lot of rewards programs tout that their points don’t expire, but sometimes the fine print says otherwise. BofA gives you 5 years before the points expire, which isn’t bad, but we’d definitely prefer that they don’t expire ever. It’s standard for most rewards cards, but your points will (temporarily) disappear if your account is not in good standing or if your payment is late.
Truth #3: Dare
While pretty standard with rewards programs, Bank of America reserves the right to change their program anytime they want to or even switch out whatever reward you choose with something else of equal value. A bit of a risk, but it’s no secret that rewards programs change occasionally. Compared to programs like Amex Membership Rewards which are quite stable and only change slightly over time, you might be running a slightly higher risk with WorldPoints.
Truth #4: Point value isn’t everything
I love quickly calculating the value of rewards points, but after looking at hundreds of card offers I can tell you with certainty that point value isn’t everything. Since certain cards can earn as high as 1.5 cents per dollar spent, the fact that you only get .8 cents per point isn’t bad at all considering that most rewards credit cards only give you 1 point per dollar spent. You can also earn points in large multiples using the WorldPoints Rewards Mall. For example you can earn 4 points per dollar spent at Barnes and Noble, or 4 points per dollar spent at Macy’s.
Verdict
BofA WorldPoints is a pretty good program. It may not be the best for cash back or buying gift cards in denominations under $250, but If you’re looking for a good program that will help you earn free flights, the WorldPoints program is one of the best. With the possibility of earning 1.5 points per dollar spent, and the opportunity to earn real free flights (instead of getting stuck with nasty fees and taxes), the BofA WorldPoints card may be worth your while.