Cash for Airline Miles: Is Selling United Miles for Cash Worth It?

 

Are you one of the millions of travelers who collect airline miles? If so, you may be wondering if it's possible to convert your miles into cash. The good news is that it is possible to redeem United MileagePlus and American Airlines AAdvantage miles for cash, but is it worth it? In this article, we'll explore the pros and cons of selling United miles for cash.

 

Selling Miles for Cash: How It Works

First, let's discuss how selling airline miles for cash works. There are several third-party companies that specialize in buying airline miles from travelers. These companies then resell the miles to other travelers or businesses looking to book flights or upgrades.

 

To sell your United MileagePlus or AAdvantage miles, you'll need to create an account with a reputable mileage broker, such as Points.com or AwardWallet. Once you've registered, you can list the number of miles you want to sell and the price you're willing to accept.

 

When a buyer is found, the broker will transfer the miles from your account to the buyer's account, and you'll receive payment in cash or by check, depending on the broker.

 

The Pros of Selling United Miles and AAdvantage Miles for Cash

The most obvious benefit of selling your United MileagePlus or AAdvantage miles for cash is that you'll have money in your pocket. Depending on the number of miles you have and the current market value, you could potentially earn hundreds or even thousands of dollars.

 

Selling your miles can also be a good option if you don't have any immediate plans to travel, or if you have more miles than you can realistically use before they expire. By selling your miles, you can avoid the risk of them expiring unused.

 

The Cons of Selling United Miles and AAdvantage Miles for Cash

 

While selling your miles for cash may seem like a great idea, there are several drawbacks to consider.

 

First and foremost, you'll likely receive less value for your miles than if you were to redeem them for flights or upgrades. In general, you can expect to receive around 1-2 cents per mile when selling to a broker, while the value of a mile when redeemed for flights can be as high as 4-5 cents per mile.

 

Additionally, selling your miles can be risky. There is always the chance that the buyer will back out of the deal, leaving you with fewer miles and no payment. It's essential to use a reputable broker with a good track record of successful transactions to minimize this risk.

 

Finally, selling your miles can have tax implications. In the eyes of the IRS, selling miles is considered taxable income, which means you'll need to report the proceeds on your tax return.

 

Is It Worth Selling United Miles and AAdvantage Miles for Cash?

In the end, whether selling your United MileagePlus or AAdvantage miles for cash is worth it comes down to your individual circumstances. If you have a large number of miles that you're unlikely to use before they expire, selling them can be a good way to get some extra cash. However, if you plan to use your miles for flights or upgrades in the future, it's generally more beneficial to redeem them directly with the airline.

 

If you do decide to sell your miles, be sure to do your research and use a reputable broker to minimize your risk. And don't forget to factor in the tax implications of selling miles when deciding whether it's worth it for you.