We all know that FlexPoints (FP) can be used to pay off annual fee. If you want to pay off $49 AF on FlexPerks Travel Rewards Visa Signature card then you can do so with 3,500 FlexPoints thus yielding you 1.4 cpp. Likewise, if you want to pay off $85 AF on the FlexPerks Gold American Express card then 5,000 FlexPoints will suffice thus yielding you a whooping 1.7 cpp. Because of this valuation it is possible to cash out 3.5k FP into $49 and/or 5k into $85 one time. This one time trick is a good way to use up small amount of leftover FP that you may have. If you’ve a 20k+ FP to burn then I suggest reading FlexPoints: guaranteed 2 cpp with Southwest.
This one time trick goes as follows:
- Wait for your renewal annual fee to hit
- Pay it off with FlexPoints. It will take 2-3 days to reflect “FlexPoints Redeemed for Annual Fee” in your card activity.
- Cancel the card and wait for your check. It may take up to 30 days for the check to arrive at your address.
The interesting part is that US Bank is fully aware of this trick. When I called to cancel the card I had inquired about refund of the annual fee. The rep noted that I had used 5k FP to pay off the annual fee and then he proceeded to state that I will receive a $85 check over the mail.