Why Earning Transferable Points on Your Credit Card is a Smart Move
With endless options for travel credit cards available today, it can be daunting to choose the right one.
However, seasoned travelers and financial experts alike tend to sing the praises of prominent cards such as the Chase Sapphire Preferred Card and the Capital One Venture X Rewards Credit Card.
These cards come with exceptional benefits that cater to a diverse range of travel preferences, but their standout feature is the transferable travel rewards points they offer.
What Are Transferable Rewards?
Transferable rewards are points that can be converted into airline miles and hotel points across a variety of brands that partner with your credit card issuer.
Examples of such points systems include Chase Ultimate Rewards and American Express Membership Rewards.
Transferable points provide a flexible currency that can be used across multiple travel loyalty programs, enhancing their value and utility.
Cards that offer transferable rewards include:
- The Platinum Card® from American Express: Comes with an offer for 80,000 bonus points after spending $8,000 within the first six months, however, it carries an annual fee of $695.
- Bilt Mastercard®: This card does not offer a welcome bonus, but it accumulates transferable points.
- Chase Sapphire Reserve: Offers 60,000 bonus points after spending $4,000 in the first three months.
- Capital One Venture Rewards Credit Card: Offers 75,000 bonus miles after spending $4,000 in the first three months.
- Citi Strata Premier℠ Card: Offers 70,000 bonus ThankYou® Points after spending $4,000 in the first three months.
These cards convert the points you earn into multiple loyalty programs.
This means you’re not limited to any single airline or hotel chain, which is a significant advantage compared to cobranded credit cards.
For instance, a Delta SkyMiles® Gold American Express Card earns only Delta miles.
Why Transferable Rewards Offer the Ultimate Flexibility
Access to More Award Seats
A key benefit of transferable rewards is the access they provide to a broader range of award seats.
Airlines and hotels maintain finite “award inventory” — seats and rooms available for booking through loyalty programs.
Even if a flight or hotel has availability for cash bookings, that doesn’t guarantee you can redeem points for it.
With transferable points, you have the flexibility to transfer to any partner program offering availability.
For example, if you collect Bilt Rewards and plan to fly from Chicago O’Hare (ORD) to Seattle (SEA), you can use your points with Alaska Airlines, Virgin Atlantic, or United Airlines.
If United Airlines doesn’t have availability, Alaska Airlines or Virgin Atlantic might.
This flexibility can save you from paying cash for what could have been nearly free.
Finding Better Award Prices
The ability to use transferable points across multiple airline programs means that you can search for the best award prices.
Award prices for the same flights often vary significantly between airlines.
For instance, a Delta flight from Cincinnati (CVG) to San Juan, Puerto Rico (SJU) might cost 20,500 Flying Blue miles when booked through Air France-KLM’s Flying Blue program.
However, booking directly through Delta could start at just 7,500 miles for basic economy or 12,000 miles for standard economy.
By being able to book through different programs, you can ensure you get the best possible price for your points.
This flexibility can result in substantial savings, making transferable points more valuable than those tied to a single airline or hotel brand.
Mitigating the Impact of Points Devaluation
Loyalty program devaluations are not uncommon.
Airlines or hotels may increase the points required for awards, terminate partnerships, or devalue the benefits of their programs.
With transferable points, you are insulated against such devaluations to some extent.
If one airline or hotel program becomes less competitive, you can simply transfer your points to a different, more favorable program.
For instance, if an airline doubles its award prices, your fixed airline miles lose half their value.
However, with transferable rewards, you can avoid this devaluation by transferring to another airline that offers better rates, thus preserving the value of your points.
The Option to Use Points for Cash Fares
When all else fails in terms of award availability, transferable points can also be redeemed for cash fares.
Each transferable rewards program usually includes an online travel portal where you can redeem points for flights, lodging, car rentals, and other options.
While the return rate for such redemptions may be around 1 cent per point, it provides a crucial backup plan.
Unlike fixed airline miles or hotel points, transferable points always hold some redeemable value, ensuring you can use them even when specific awards are unavailable.
Conclusion
Transferable points maximize your travel flexibility, enabling you to get the most out of your rewards.
By collecting points that can be used across multiple airlines and hotels, you guarantee yourself a greater variety of options, protect against loyalty program changes, and maintain the ability to find the best award deals.
Ultimately, for travelers seeking to optimize their rewards, focusing on earning transferable points could be the smartest move.
