Editor’s note: This is a recurring post, regularly updated with new information.
If you’re familiar with TPG’s valuations, you’ll notice transferable rewards currencies such as 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 particularly valuable is the ability to transfer them to various airline and hotel programs — hence why we refer to them as transferable rewards.
If you look at TPG’s valuations, 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 because our October 2024 valuations value Chase points at 2.05 cents each and Hyatt points at 1.7 cents each, you’d “lose” 0.35 cents per point with this transfer.
You might wonder why we value transferable rewards more than airline miles and hotel points. 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. That’s why we don’t recommend hoarding points and miles. 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.
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® 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.
On the other hand, if you’ve been earning Ultimate Rewards points with the Chase Sapphire Preferred® 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℠ 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. You can transfer your rewards at a better ratio with a transfer bonus. Normally, these range between 15% and 40%.
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
- The complete guide to American Express Membership Rewards
- How to redeem American Express Membership Rewards for maximum value
- American Express Membership Rewards transfer partners: Maximize your points
Top cards to consider:
- The Platinum Card® from American Express
- American Express® Gold Card
- The Business Platinum Card® from American Express
- American Express® Business Gold Card
- The Blue Business® Plus Credit Card from American Express
Capital One miles
- Capital One miles: How to earn, redeem and transfer rewards
- Cashing in Capital One miles? How to get the maximum value when redeeming miles
- Ultimate guide to Capital One airline and hotel transfer partners: How to maximize your miles
Top cards to consider:
- Capital One Venture X Rewards Credit Card
- Capital One Venture Rewards Credit Card
- Capital One Venture X Business
- Capital One Spark Miles for Business
Chase Ultimate Rewards
- The complete guide to Chase Ultimate Rewards
- How to redeem Chase Ultimate Rewards points for maximum value
- Who are the Chase transfer partners? Everything to know
Top cards to consider:
Citi ThankYou Rewards
- Citi ThankYou Rewards: The ultimate guide
- Best ways to redeem Citi ThankYou points
- Citi transfer partners: Maximize your ThankYou points with these loyalty programs
Top card to consider:
Related: The best credit card welcome bonuses this month
Bottom line
With transferable credit card rewards, you can convert your hard-earned rewards into points and miles with various hotel and airline loyalty programs. By doing so, you can avoid losing value when one hotel or airline program devalues its rewards. Plus, you can explore a vast 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.
