Why transferable points and miles are more valuable than other rewards
If you are familiar with TPG’s valuationYou’ll find transferable bonuses like American Express Membership Rewards points and Chase Ultimate Rewards points consistently rank as some of the most valuable rewards.
You can earn these rewards in a number best travel credit cards. But what makes these rewards especially valuable is the ability to transfer them to different airline and hotel programs—that’s why we call them transferable rewards.
If you look at TPG’s valuation, you’ll notice you almost always “lose” value when transferring these rewards. For example, you can Transfer Chase Ultimate Rewards points to World of Hyatt at a 1:1 ratio, but since our October 2024 valuation values Chase points at 2.05 cents each and Hyatt points at 1.7 cents each, you would “lose” 0, 35 cents per point on this transfer.
You may wonder why we value transferable rewards more than airline miles and hotel points. In this story, I will discuss what causes Points have transfer value and why you should earn transferable points.
Diversify your exposure
With so much devaluation, it’s no secret that Points and miles are a poor long-term investment. That’s why we don’t recommend hoarding points and miles. But if you want to stack up rewards for your next trip, one of the best ways to protect yourself against devaluation is to earn transferable rewards.
If you have a large amount of points and miles in a loyalty program, you stand to lose significantly if depreciation occurs. But with transferable rewards, you can switch to the program with the best rewards rate as soon as you’re ready to book.
Related: Credit card transfer partners: Instructions for transferring points and miles to airlines and hotels
Get access to a variety of hotel and airline programs
Transferable rewards also give you more flexibility than any airline or hotel loyalty program.
For example, if you are accumulating Delta SkyMiles above Delta SkyMiles® Gold American Express CardYou are limited to redeeming your miles in 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 are earning Ultimate Rewards Points with Chase Sapphire Preferred® CardYou can transfer your points to a variety of programs—incl Air France-KLM Fly Green, British Airways Executive Club And Virgin Atlantic Flying Club – if you find a better prize selection. Similarly, if you find a one-way flight for $450, you can redeem 36,000 Chase points to book this flight through Chase Travel Portal℠.
TPG’s pricing offers transferable rewards that are worth more than the currency of the airline and hotel programs you can transfer to because transferable points allow for more flexibility.
Related: The best ways to travel to Europe using points and miles
Transfer bonus
Major credit card rewards currencies regularly offer transfer bonus. You can transfer your rewards at a better rate with transfer rewards. Typically, these numbers range from 15% to 40%.
Depending on what’s available when you’re ready to book, beneficial transferable rewards can increase the value you can get from your transferable rewards. You can even get enough points or miles for premium economy seats if you transfer the award you would normally need to an economy seat during the transfer bonus period.
Related: Full list of transfer bonuses over the past decade – which issuers were the most generous?
Points and miles are transferable
Now you know why transferable rewards are more valuable than airline miles and hotel points. Below is some information to consider about each of the major transferable rewards programs.
American Express Membership Rewards
Top cards to consider:
Capital One Mile
Top cards to consider:
Chasing the ultimate reward
Top cards to consider:
Citi ThankYou Rewards
Top cards to consider:
Related: The best credit card welcome bonuses this month
Bottom line
With transferable rewards credit cards, you can convert your hard-earned rewards into points and miles with a variety of hotel and airline loyalty programs. That way, you can avoid losing value when a hotel or airline program reduces the value of its rewards. Plus, you can explore a broad network of partners and choose the one that offers the most value and benefits for each redemption instead of being limited to a single airline or hotel program.
