In the world of travel rewards, flexibility is king. That’s where transferable points and miles come in by offering savvy travelers a powerful way to maximize their hard-earned rewards. But what exactly are transferable points, and why should you prioritize earning them? Let’s dive in.
Transferable points are rewards currencies issued by credit card companies that you can transfer to multiple airline and hotel loyalty programs.
The major players in this space include:
These programs allow you to accumulate points through credit card spending and bonuses, which you can then transfer to a variety of travel partners when you’re ready to book.
Some of our favorite credit cards that earn transferable points and miles include:
You can earn transferable points with American Express Membership Rewards Cards.
You can earn transferable points with Chase Ultimate Rewards Cards.
You can earn transferable points with Capital One credit cards.
You can earn transferable points with the Bilt Rewards card.
Transferable points give you ultimate flexibility when it comes to redeeming your travel rewards. Unlike cobranded airline- or hotel-specific points, which limit you to one loyalty program and its partners, transferable points allow you to choose the best redemption option at the time you book.
For example, let’s say you’ve accumulated a stash of United MileagePlus miles. You’re restricted to redeeming them with United Airlines and its partners. But if you have a balance of Chase Ultimate Rewards points, your options expand significantly. You can:
Simply put, with transferable points, you’re in control. You can keep your rewards until you find the perfect trip to book.
Loyalty programs frequently change their award charts, often with little or no notice. These changes, known as devaluations, can significantly reduce the value of your points.
For example, in May 2023, United Airlines implemented a worldwide devaluation. Economy-class saver awards to Europe were increased from 30,000 to 40,000 miles, while business-class saver awards were increased from 60,000 to 80,000 miles. That massively decreased the value of United miles overnight.
Transferable points offer a hedge against these devaluations:
Credit card issuers occasionally offer bonuses when transferring to specific partners. For example, American Express might offer a 30% bonus when transferring to British Airways. These bonuses effectively increase the value of your points.
Each loyalty program has its own price bands with unique high-value redemptions also known as sweet spots. You can take advantage of sweet spots across multiple programs with transferable points.
Before booking, you can compare redemption rates across several programs to find the best deal. For example, let’s look at pricing for a given Delta flight from Hartsfield-Jackson Atlanta International Airport (ATL) to Antigua’s V.C. Bird International Airport (ANU):
This is a perfect example of how transferable points often result in significant savings compared to being locked into a single program.
With transferable points, you can grow your existing loyalty points balances. For example, if your flight costs 50,000 Flying Blue miles but you only have 20,000 miles in your account, you can transfer an additional 30,000 miles to reach the required amount. This feature can help you accumulate the necessary points for a specific redemption more quickly.
Earning transferable points is one of the most innovative ways to maximize your travel rewards strategy. With flexibility, protection from devaluations, transfer bonuses, and access to high-value redemptions, these points give you the freedom to book travel in the most cost-effective way possible.
If you’re serious about making your points work for you, prioritizing transferable currencies is the way to go.
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