In the event you’re conversant in TPG’s valuations, you will discover transferable rewards currencies comparable to American Categorical Membership Rewards factors and Chase Final Rewards factors constantly rank as a number of the most dear rewards.
You may earn these rewards with a number of the best travel credit cards. However what makes these rewards notably beneficial is the flexibility to switch them to varied airline and lodge packages — therefore why we discuss with them as transferable rewards.
In the event you have a look at TPG’s valuations, you will discover you virtually at all times “lose” worth when transferring these rewards. For instance, you’ll be able to transfer Chase Ultimate Rewards points to World of Hyatt at a 1:1 ratio, however as a result of our October 2024 valuations worth Chase factors at 2.05 cents every and Hyatt factors at 1.7 cents every, you’d “lose” 0.35 cents per level with this switch.
You may marvel why we worth transferable rewards greater than airline miles and lodge factors. On this story, I am going to talk about what makes transferable points valuable and why you must earn transferable factors.
Diversify your publicity
With so many devaluations, it is no secret that points and miles are a poor long-term investment. That is why we do not advocate hoarding factors and miles. However if you wish to construct a stash of rewards for an upcoming journey, among the finest methods to guard your self in opposition to devaluations is by incomes transferable rewards.
You probably have a bit of your factors and miles in a single loyalty program, you’ll lose considerably if a devaluation happens. However with transferable rewards, you’ll be able to switch to this system with probably the most interesting award charges when you’re able to e book.
Associated: Credit card transfer partners: Guide to transferring points and miles to airlines and hotels
Entry to many lodge and airline packages
Transferable rewards additionally provide you with extra flexibility than any single airline or lodge loyalty program.
As an example, in the event you’ve been accruing Delta SkyMiles on the Delta SkyMiles® Gold American Express Card, you are restricted to redeeming your miles throughout the SkyMiles program. If you’ll want to fly from New York Metropolis to London on a selected date and the flight is 100,000 Delta miles, that is your solely redemption choice.
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However, in the event you’ve been incomes Final Rewards factors with the Chase Sapphire Preferred® Card, you possibly can switch your factors to varied packages — together with Air France-KLM Flying Blue, British Airways Executive Club and Virgin Atlantic Flying Club — in the event you discover a higher award choice. Likewise, in the event you discovered a one-way flight for $450, you possibly can redeem 36,000 Chase factors to e book this flight by way of the Chase Travel℠ portal.
TPG’s valuations give transferable rewards increased valuations than the currencies of the airline and lodge packages you possibly can switch to since transferable factors enable for extra flexibility.
Associated: The best ways to travel to Europe using points and miles
Switch bonuses
The foremost bank card rewards currencies routinely provide transfer bonuses. You may switch your rewards at a greater ratio with a switch bonus. Usually, these vary between 15% and 40%.
Relying on what’s accessible whenever you’re able to e book, a good switch bonus could increase the worth you may get out of your transferable rewards. You may even get sufficient factors or miles for premium financial system seats in the event you switch the rewards you’d sometimes want for financial system seats throughout a switch bonus.
Associated: A complete list of transfer bonuses over the past decade — which issuer is the most generous?
Transferable factors and miles
Now you realize why transferable rewards are extra beneficial than airline miles and lodge factors. This is some data to think about about every of the main transferable rewards packages.
American Categorical Membership Rewards
Prime playing cards to think about:
Capital One miles
Prime playing cards to think about:
Chase Final Rewards
Prime playing cards to think about:
Citi ThankYou Rewards
Prime card to think about:
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Backside line
With transferable bank card rewards, you’ll be able to convert your hard-earned rewards into factors and miles with varied lodge and airline loyalty packages. By doing so, you’ll be able to keep away from shedding worth when one lodge or airline program devalues its rewards. Plus, you’ll be able to discover an unlimited community of companions and select the one that provides probably the most worth and advantages for every redemption as a substitute of being restricted to a single airline or lodge program.