If you’re familiar with TPG ratings, you’ll notice transferable reward currencies 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 with some of the best travel credit cards. But what makes these rewards especially valuable is the ability to transfer them to various airline and hotel programs – that’s why we refer to them as transferable rewards.
If you look at TPG’s ratings, you’ll notice that you almost always “lose” value when you transfer these rewards. For example, you can transfer Chase Ultimate Rewards points to World of Hyatt at a 1:1 ratio, but because our estimate for October 2024 costs Chase points at 2.05 cents each and Hyatt points at 1.7 cents each , you will “lose” 0.35 cents. per point with this transfer.
You may be wondering why we value transferable rewards over airline miles and hotel points. In this article, I will discuss what makes transferable points worthwhile and why you should earn transferable points.
Diversify your exposure
With such a drop in value, it’s no secret that points and miles are a bad long-term investment. This is why we do not recommend accumulating points and miles. But if you’re looking to build up a stack of rewards for future trips, one of the best ways to protect yourself against the squeeze is to earn transferable rewards.
If you have a chunk of your points and miles in one loyalty program, you stand to lose a lot in the event of a downturn. But with transferable rewards, you can transfer to the program at a more attractive rate of rewards when you’re ready to book.
Related: Credit card transfer partners: A 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 example, if you’ve been earning Delta SkyMiles on Delta SkyMiles® Gold American Express Cardyou are limited in using your miles within the SkyMiles program. If you need to fly from New York City to London on a certain date and the flight is 100,000 Delta miles, that’s your only recourse.
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On the other hand, if you’ve been earning high points with the Chase Sapphire Preferred® card, you can 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 reward option. Similarly, if you found a one-way flight for $450, you can use 36,000 Chase points to book this flight through the Chase Travel℠ portal.
TPG’s rating gives transferable rewards higher values than airline currencies and hotel programs you can transfer to since transferable points allow for more flexibility.
Related: The best ways to travel to Europe using points and miles
Transfer bonuses
Major rewards credit card brands often offer transfer bonuses. You can transfer your rewards at a better rate with a transfer bonus. Generally, these vary between 15% and 40%.
Depending on what’s available when you’re ready to book, a positive transfer bonus may increase the value you can get from your transfer awards. You may earn enough points or miles for premium economy seats if you transfer awards that you would normally need for economy seats during the bonus transfer period.
Related: Complete list of referral bonuses from the last 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 is some information to consider about each major transferable rewards program.
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
A top card to consider:
Related: The best credit card acceptance bonuses this month
Bottom line
With transferable credit card rewards, you can convert your hard-earned rewards into points and miles through various hotel and airline loyalty programs. By doing so, you can avoid losing value when one hotel or airline lowers the value of its rewards. Also, you can explore a large network of partners and choose the one that offers the most value and benefits for each use instead of being limited to a single flight or hotel plan.
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