Points and miles are usually shown next to a cash value — "50,000 points, worth $500" — but that number is only true for one specific redemption. Redeem the same points differently and the real value can be half that, or occasionally double it.
Why the same points balance has different values
Most travel rewards programs offer several ways to redeem: a flat statement credit rate (typically the worst value), transferring to airline or hotel partners (often the best value, if you can use it), or booking directly through the issuer's travel portal (usually in between). The advertised "cents per point" figure is almost always the best-case transfer value, not what you'll get from the easiest option.
Divide the cash price of what you booked by the number of points it cost. If that comes out meaningfully below the card's advertised value per point, you redeemed at a discount — worth knowing before assuming every redemption is equal.
The annual fee has to be justified every year
A card with an annual fee needs to be evaluated on whether the perks and earn rate you'll actually use exceed that fee — not on the card's full list of benefits, many of which go unused. A travel credit you never redeem or a lounge pass for an airport you rarely fly through don't count toward justifying the fee.
Sign-up bonuses: read the spending requirement realistically
A large sign-up bonus tied to a spending requirement is only "free" if that spending is money you'd have spent anyway. Adjusting normal spending upward just to hit a bonus threshold usually costs more in interest or impulse purchases than the bonus is worth.
The bottom line
Treat the advertised point value as a ceiling, not a guarantee, and evaluate any annual fee against benefits you'll genuinely use — not the full list on the card's landing page. A simpler flat-rate cash-back card frequently beats a travel card in practice for someone who doesn't have the specific travel pattern the rewards program is built around.