Best Time to Sell Loyalty Points: When Should You Cash Out?
Timing matters when selling loyalty points—but probably not in the way you think. This guide covers when to sell, what signals to watch for, and why waiting might cost you money.
Many Canadians sit on their loyalty points waiting for the "perfect time" to sell. But here's the truth: the best time to sell is often sooner than you think. While there are some timing considerations, the biggest risk is waiting too long.
The Key Insight:
Loyalty points are a depreciating asset. Programs regularly devalue their currencies, and points can expire. Unlike wine, points don't get better with age. If you've decided you want to sell, acting sooner protects you from these risks.
Do Selling Rates Change Throughout the Year?
Yes, but the fluctuations are relatively modest compared to other factors. Here's what affects rates:
Seasonal Demand Patterns
Point brokers resell to travelers and businesses who use them for bookings. Demand tends to be higher during:
- • January-February: People planning summer vacations
- • September-October: Holiday travel booking season
- • Corporate fiscal year-end: Businesses using travel budgets
Rate Stability
Unlike stock markets, point selling rates don't swing wildly day-to-day. Established brokers maintain relatively stable rates, adjusting gradually based on market conditions. You won't see 20% swings between Monday and Friday.
Reality Check:
Seasonal rate differences are typically 5-10% at most. Waiting months for a "better rate" often costs you more in devaluation risk than you'd gain from timing.
Program Devaluations: The Biggest Timing Factor
The most important timing consideration isn't seasonal—it's watching for program devaluations. Here's why this matters:
What Is a Devaluation?
Loyalty programs regularly increase the number of points needed for redemptions while keeping earning rates the same. This makes your existing points worth less. Major devaluations can reduce point value by 10-30% overnight.
Aeroplan History
Aeroplan moved to dynamic pricing in 2020, generally increasing costs for premium redemptions. The program continues adjusting award prices, usually upward.
Amex MR Transfers
American Express occasionally changes transfer ratios to partners. A 1:1 ratio becoming 1:0.75 instantly devalues your points by 25%.
Marriott Bonvoy
Marriott has devalued multiple times since the SPG merger, moving properties to higher categories and removing the award chart entirely in favor of dynamic pricing.
The Takeaway:
If you hear about an upcoming devaluation, sell BEFORE it takes effect. The selling rate is based on what brokers can do with the points—once redemptions become more expensive, your points are worth less to everyone.
Signs It's Time to Sell Now
Beyond devaluations, certain personal circumstances make selling the right choice:
Your Points Are Approaching Expiration
If expiration is within 60-90 days and you won't use them, sell immediately. The process takes 3-5 days, and you don't want to cut it close.
You're Closing Your Credit Card
For Amex MR, you have limited time after card closure. Don't wait—start the selling process before you cancel, or immediately after if you forgot.
A Program Announced Changes
Devaluation announcements, removed partners, or new award pricing means points will be worth less. Sell before changes take effect.
You Need Cash Now
If you have financial obligations, points are an asset you can liquidate. Waiting for a "better time" doesn't help if you need money today.
Your Travel Lifestyle Changed
New job, family changes, health issues, or simply lost interest in travel? If you won't use points for their intended purpose, convert them to cash.
The Hidden Cost of Waiting
Many people delay selling hoping for better rates. Here's what that waiting actually costs:
Opportunity Cost
Cash in hand can be invested, pay down debt, or cover expenses. Points sitting in an account earn zero return.
Devaluation Risk
Every day you hold points is a day closer to the next devaluation. Programs don't announce these far in advance.
Expiration Risk
Life gets busy. Points can expire while you're distracted. Selling eliminates this risk entirely.
Mental Load
Tracking points, watching for deals, remembering expiration dates—that's cognitive overhead. Selling simplifies your life.
The Truth About "Perfect Timing":
There's no perfect time to sell, just like there's no perfect time to buy a house or change jobs. If you've decided selling makes sense for your situation, the best time is now—before something changes that costs you value.
How to Lock In Your Rate
When you request a quote from a reputable broker, that rate is typically guaranteed for a period (often 7 days). This gives you time to decide without worrying about rate changes.
Request a Quote
Get a formal quote with the rate and total payment. This starts your rate guarantee period.
Review at Your Pace
You have time to think, compare options, or discuss with family. No rush, no pressure.
Accept When Ready
When you decide to proceed, accept the quote and begin the transfer process.
Ready to See What Your Points Are Worth?
Stop wondering and start knowing. Get a free quote from Mega Miles Broker and find out exactly how much cash your points can become.
- No obligation: Getting a quote doesn't commit you to anything
- Rate guarantee: Quoted rates held for 7 days
- Fast quotes: Response within 24 hours
- Quick payment: Interac e-Transfer within 48 hours of transfer
Frequently Asked Questions
Do loyalty point selling rates change throughout the year?
Yes, rates can fluctuate based on market demand. Rates tend to be slightly higher during peak travel booking seasons (January-February, September) when brokers need more inventory. However, fluctuations are typically modest—timing your personal situation is more important than seasonal timing.
Should I sell before a program devaluation?
Yes. When a loyalty program announces upcoming changes that reduce point value (higher redemption costs, removed benefits), it's generally wise to sell before those changes take effect. The announcement itself doesn't affect selling rates, but your points become less valuable for redemption afterward.
Is it better to sell a large balance all at once or in batches?
For most sellers, selling all at once is simpler and gets you paid faster. Selling in batches only makes sense if you want to keep some points for potential future use, or if you're trying to spread transactions over time for tax planning purposes.
How quickly can I sell if I need cash urgently?
The typical process takes 3-5 days from quote to payment. If you have an urgent need, communicate this to the broker—many can expedite the process for time-sensitive situations, getting you paid within 24-48 hours of point transfer.
Will waiting longer get me a better rate?
Not necessarily. Point values trend downward over time due to program devaluations. While day-to-day rates are stable, the longer you hold points, the more risk you carry from potential devaluations, expiration, or program changes.