Transferable points and Miles are more valuable than other rewards
These rewards are valuable because they can be transferred to various airline and hotel programs. But what makes these rewards particularly valuable is the ability to transfer them to various airline and hotel programs — hence why we refer to them as transferable rewards.
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If you look at TPG’s valuations, you’ll notice you almost always “lose” value when transferring these rewards. You can transfer Chase Ultimate Reward points to World of Hyatt in a 1:1 ratio. However, because of our valuations for October 2024, Chase points are valued at 2.05 cents and Hyatt Points at 1.7 cents, this would result in a “loss” of 0.35 cents. In this story, I’ll discuss what makes transferable points valuable and why you should earn transferable points.
Diversify your exposure
With so many devaluations, it’s no secret that points and miles are a poor long-term investment. We don’t advise hoarding miles and points. But if you want to build a stash of rewards for an upcoming trip, one of the best ways to protect yourself against devaluations is by earning transferable rewards.
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If you have a chunk of your points and miles in a single loyalty program, you will lose significantly if a devaluation occurs. But with transferable rewards, you can transfer to the program with the most appealing award rates once you’re ready to book.
Related: Credit card transfer partners: Guide to transferring points and miles to airlines and hotels
Access to many hotel and airline programs
Transferable rewards also give you more flexibility than any single airline or hotel loyalty program.
For instance, if you’ve been accruing Delta SkyMiles on the
Delta SkyMiles(r) Gold American Express Card
, you’re limited to redeeming your miles within the SkyMiles program. If you need to fly from New York City to London on a specific date and the flight is 100,000 Delta miles, that’s your only redemption option.
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On the other hand, if you’ve been earning Ultimate Rewards points with the Chase Sapphire Preferred(r) Card, you could transfer your points to various programs — including Air France-KLM Flying Blue, British Airways Executive Club and Virgin Atlantic Flying Club — if you find a better award option. Likewise, if you found a one-way flight for $450, you could redeem 36,000 Chase points to book this flight through the Chase Travel(sm) portal.
TPG’s valuations give transferable rewards higher valuations than the currencies of the airline and hotel programs you could transfer to since transferable points allow for more flexibility.
Related: The best ways to travel to Europe using points and miles
Transfer bonuses
The major credit card rewards currencies routinely offer transfer bonuses. Transfer bonuses allow you to transfer your rewards for a higher ratio. Normally, these range between 15% and 40%.
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Depending on what’s available when you’re ready to book, a favorable transfer bonus may boost the value you can get from your transferable rewards. You might even get enough points or miles for premium economy seats if you transfer the rewards you’d typically need for economy seats during a transfer bonus.
Related: A complete list of transfer bonuses over the past decade — which issuer is the most generous?
Transferable points and miles
Now you know why transferable rewards are more valuable than airline miles and hotel points. Here’s some information to consider about each of the major transferable rewards programs.
American Express Membership Rewards
Top cards to consider
:
Capital One miles
Top cards to consider:
Chase Ultimate Rewards
Top cards to consider:
Citi ThankYou Rewards
Top card to consider:
Related: The best credit card welcome bonuses this month
Bottom lineWith transferable credit card rewards, you can convert your hard-earned rewards into points and miles with various hotel and airline loyalty programs. You can prevent losing value if a hotel or airline program lowers the value of its rewards. You can also choose from a wide range of partners to find the best value and benefit for your redemption, rather than being restricted to one airline or hotel program.
