Amex Welcome Bonus Strategy: Keep Points for Travel or Sell for Cash?
You just earned 70,000 to 100,000 Amex Membership Rewards points from your welcome bonus. Now comes the critical decision: keep them for premium travel or convert to $840-$1,550 cash immediately. This guide gives you the complete decision framework.
Quick Answer:
Keep your welcome bonus if you have confirmed travel plans in the next 12 months and understand transfer partner sweet spots. Sell your welcome bonus if you want guaranteed cash value now, need to offset the annual fee, or don't have specific travel plans. Most Canadians without firm travel bookings choose cash—it's guaranteed value versus speculative redemptions.
Welcome Bonus Reality Check
Earning an Amex welcome bonus feels like winning the lottery—70,000 to 100,000 points appearing in your account after meeting minimum spend. Credit card blogs promise these points are "worth $1,000-$2,500 in travel," but that valuation requires perfect redemptions most cardholders never achieve.
The reality: your welcome bonus has two distinct values—its theoretical travel value (variable, requires expertise) and its immediate cash value (guaranteed, requires no skill). This guide helps you choose which path aligns with your actual travel habits and financial priorities.
By the Numbers: 2025 Welcome Bonuses
*Cobalt earns MR Select, which must transfer to Aeroplan before selling at $0.012-0.014/point
Option 1: Keep Your Welcome Bonus for Travel
Amex Membership Rewards shine when transferred to airline and hotel partners at 1:1 ratios. Your 70,000-point welcome bonus becomes 70,000 Aeroplan miles, 70,000 Marriott Bonvoy points, or 70,000 British Airways Avios.
Best Redemption Scenarios for Welcome Bonuses
Aeroplan Business Class to Europe
70,000 MR → 70,000 Aeroplan miles
Books roundtrip business class Toronto to Europe (60K-70K miles + $200-400 taxes). Comparable cash price: $3,500-5,000.
Value: ~5-7¢ per point
British Airways Short-Haul Flights
70,000 MR → 70,000 Avios
Books 5-7 short-haul flights in Europe, Asia, or North America (9K-13K Avios each). Perfect for multi-city trips.
Value: ~2-4¢ per point
Marriott 5-Night Hotel Package
70,000 MR → 70,000 Marriott Bonvoy points
Covers 1-2 nights at premium Marriott properties (35K-50K points/night) or 5-7 nights at mid-tier hotels (10K-15K/night).
Value: ~1-2¢ per point
When Travel Makes Sense
- You have confirmed travel plans in the next 6-12 months
- You're comfortable researching award availability and transfer partners
- You can be flexible with travel dates to find award availability
- You're targeting premium cabin flights (business/first class)
- You're willing to pay positioning costs and fuel surcharges
The Award Travel Reality
Even optimal redemptions require time, flexibility, and expertise. If you don't have firm travel dates or struggle to find award availability, your points sit idle while their value potentially decreases through program devaluations.
Option 2: Sell Your Welcome Bonus for Immediate Cash
Selling your Amex welcome bonus converts speculative travel value into guaranteed cash within 24-48 hours. Current market rates: $0.012-0.0155 per point depending on your total balance and market conditions.
Cash Value Calculator: Your Welcome Bonus
70,000 Points (Typical Platinum)
Standard welcome bonus
100,000 Points (Enhanced Offer)
Premium welcome bonus
50,000 Points (Gold Card)
Gold welcome bonus
Note: Premium rates ($0.014-0.0155/pt) apply to balances of 150K+ points. Lower balances typically receive $0.012-0.013/pt.
When Cash Makes More Sense
- You want to offset the annual fee. A 70,000-point bonus covers 100%+ of Platinum's $799 fee.
- You have no confirmed travel plans in the next 12 months.
- You value guaranteed returns over speculative redemptions.
- You're concerned about program devaluations reducing future point value.
- You prefer cash flexibility for any expense, not just travel.
- You're testing the card and unsure about keeping it long-term.
Annual Fee Offset Strategy
This is the most popular welcome bonus strategy among first-time Amex cardholders: sell your bonus to completely offset the annual fee, effectively getting your first year free while testing the card benefits.
Example: Platinum Card Holder
You profit $111 while accessing Platinum benefits (lounge access, hotel status, credits) for a full year. Cancel before year two if the fee isn't worth it.
Decision Framework: 4 Questions to Answer
Use this framework to decide whether your welcome bonus should become cash or travel currency:
Do you have specific travel plans in the next 6-12 months?
Yes: Keep points if you know your destination, dates (flexible within 2-3 weeks), and preferred cabin class. Research award availability before deciding.
No: Sell now. Vague "maybe we'll travel next year" plans rarely convert to actual bookings, leaving points idle.
Is the annual fee a financial concern?
Yes: Sell your bonus to offset the fee. This converts your first-year cost from $250-$800 to break-even or profit.
No: If you can comfortably afford the annual fee regardless, base your decision solely on travel value vs cash value.
Are you comfortable with points and miles research?
Yes: If you understand transfer ratios, award charts, and availability searching, you can extract 2-5¢/point value from premium redemptions.
No: If award travel feels overwhelming, you'll likely redeem poorly (1-1.5¢/point) or never use the points. Selling guarantees better value.
Do you value flexibility or maximum theoretical value?
Flexibility: Cash lets you spend on anything—emergency fund, investments, bills, or paying for travel directly. Sell your bonus.
Maximum value: If you're willing to invest time for optimal redemptions and can handle travel restrictions, keep points for premium cabin flights.
Real Scenarios: What Other Canadians Are Doing
Scenario 1: The Annual Fee Offset
Situation: Sarah got the Platinum Card with a 70,000-point bonus. She's interested in lounge access but concerned about the $799 annual fee.
Decision: Sell the welcome bonus
70,000 points × $0.013/point = $910 cash
Outcome: Sarah pockets $111 after covering the annual fee. She uses the card for a year to test lounge access and hotel status. If she doesn't use those benefits enough to justify $799/year, she cancels before year two with zero net cost.
Scenario 2: The Confirmed Travel Plan
Situation: Marcus earned 100,000 points and has a September honeymoon to Italy booked. He needs Toronto to Rome in business class.
Decision: Keep points, transfer to Aeroplan
100,000 MR → 100,000 Aeroplan → Business class for two to Europe
Outcome: Marcus books two business class seats (70,000 Aeroplan + $400 taxes), saving 30,000 points for positioning flights. Comparable cash price: $7,000. He extracted ~7¢/point value because he had specific plans and award availability.
Scenario 3: The "Maybe Travel" Holder
Situation: Jennifer earned 70,000 points and thinks she "might visit family in Vancouver sometime next year."
Decision: Sell the bonus now
70,000 points × $0.013/point = $910 cash
Outcome: Jennifer converts vague travel plans into guaranteed cash. If she does book Vancouver, she uses the $910 toward a paid ticket with full schedule flexibility. No points wasted on redemptions that never happened.
Scenario 4: The Card Churner
Situation: David applies for Amex cards specifically for welcome bonuses every 12-18 months. He earned 100,000 Business Platinum points.
Decision: Sell immediately after 90-day waiting period
100,000 points × $0.014/point = $1,400 cash
Outcome: David nets $1,400 minus the $499 annual fee = $901 profit. He cancels the card before year two and repeats the strategy with a different Amex product next year. His "hobby" generates $900-1,500 annually.
Important Timing Considerations
When you sell your welcome bonus matters almost as much as the decision itself:
Wait 90 Days After Earning Your Bonus
Selling immediately after meeting minimum spend signals bonus abuse to Amex. Wait at least 90 days to make the transaction look like normal point usage. This dramatically reduces account closure risk.
Monitor Rate Fluctuations (Minor Impact)
Amex MR rates fluctuate 0.1-0.2¢ per point monthly based on supply/demand. Waiting for "perfect" rates rarely justifies the delay—a $100-200 difference on 100K points. If you're selling, do it within your 90-180 day window.
Sell Before Cancelling Your Card
Critical: Amex MR points expire when you close your card account (unlike Aeroplan, which persists independently). If you're cancelling before year two to avoid the annual fee, sell your points at least 2 weeks before closing the card.
Best Selling Window: 90-180 Days After Bonus
This window balances account safety (past the 90-day minimum), rate stability, and decision-making time. If you haven't booked specific travel by day 180, your points are unlikely to ever get used optimally.
Frequently Asked Questions
Is it legal to sell my Amex welcome bonus points?
Yes, selling Amex Membership Rewards points is legal in Canada. While it technically violates Amex's terms of service, it's a civil contract issue, not a criminal matter. Thousands of Canadians sell their welcome bonuses annually. The primary risk is account closure by Amex, though this is rare when selling through Family Sharing or partner transfers. You won't face legal consequences, but understand the terms violation.
How soon after earning my welcome bonus can I sell?
Wait at least 90 days after earning your welcome bonus before selling. This waiting period reduces Amex's suspicion of bonus abuse (applying solely to cash out). Selling immediately after meeting minimum spend can flag your account. After 90 days, the transaction looks like normal point redemption activity.
Will selling my welcome bonus affect my credit score?
No, selling points has zero impact on your credit score. Your credit report tracks payment history, credit utilization, and account age—not loyalty point transactions. Even if Amex closes your account for selling points, closure itself doesn't hurt your score (though losing the credit limit could increase your overall utilization slightly).
Should I sell my welcome bonus to offset the annual fee?
This is one of the smartest strategies. A 70,000-point Platinum bonus sells for $840-$1,085—enough to cover the $799 annual fee in your first year. If you're unsure about keeping the card long-term, selling the bonus converts the fee into essentially a break-even proposition while you test the card benefits.
Can I earn another welcome bonus after selling my points?
Yes, but Amex has strict welcome bonus rules. You can't receive the same card's bonus twice if you've had the card in the past 6-12 months (varies by card). Selling your bonus doesn't affect future bonus eligibility—closing the card, waiting the required period, and reapplying does. Many Canadians cycle through Amex cards every 12-18 months to maximize bonuses.
Final Recommendation
If you're reading this guide, you're already uncertain about keeping your welcome bonus for travel—and that uncertainty is your answer. Confident travelers with firm plans don't need decision frameworks; they book immediately.
Default to selling unless you have confirmed travel plans within 180 days. Convert speculative value into guaranteed cash, offset your annual fee, and eliminate the risk of points expiring unused. You can always apply for another Amex card in 12-18 months and make a different choice with that bonus.
Related Resources
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