Why transferable points and miles are worth more than other rewards
Editor's Note
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 (see rates and fees), 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:
- Chase Sapphire Reserve® (see rates and fees)
- Chase Sapphire Preferred® Card
- Ink Business Preferred® Credit Card
The information for the Ink Business Preferred has been collected independently by The Points Guy. The card details on this page have not been reviewed or provided by the card issuer.
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.
TPG featured card
Rewards
| 4X | Earn 4X Membership Rewards® points per dollar spent on purchases at restaurants worldwide, on up to $50,000 in purchases per calendar year, then 1X points for the rest of the year. |
| 4X | Earn 4X Membership Rewards® points per dollar spent at US supermarkets, on up to $25,000 in purchases per calendar year, then 1X points for the rest of the year. |
| 3X | Earn 3X Membership Rewards® points per dollar spent on flights booked directly with airlines or on AmexTravel.com. |
| 2X | Earn 2X Membership Rewards® points per dollar spent on prepaid hotels and other eligible purchases booked on AmexTravel.com. |
| 1X | Earn 1X Membership Rewards® point per dollar spent on all other eligible purchases. |
Intro offer
Annual Fee
Recommended Credit
Why We Chose It
There’s a lot to love about the Amex Gold. It’s a fan favorite thanks to its fantastic bonus-earning rates at restaurants worldwide and at U.S. supermarkets. If you’re hitting the skies soon, you’ll also earn bonus Membership Rewards points on travel. Paired with up to $120 in Uber Cash annually (for U.S. Uber rides or Uber Eats orders, card must be added to Uber app and you can redeem with any Amex card), up to $120 in annual dining statement credits to be used with eligible partners, an up to $84 Dunkin’ credit each year at U.S. Dunkin Donuts and an up to $100 Resy credit annually, there’s no reason that foodies shouldn’t add the Amex Gold to their wallet. These benefits alone are worth more than $400, which offsets the $325 annual fee on the Amex Gold card. Enrollment is required for select benefits.Pros
- 4 points per dollar spent on dining at restaurants worldwide and U.S. supermarkets (on the first $50,000 in purchases per calendar year; then 1 point per dollar spent thereafter and $25,000 in purchases per calendar year; then 1 point per dollar spent thereafter, respectively)
- 3 points per dollar spent on flights booked directly with the airline or with amextravel.com
- Packed with credits foodies will enjoy
- Solid welcome bonus
Cons
- Not as useful for those living outside the U.S.
- Some may have trouble using Uber and other dining credits
- You may be eligible for as high as 100,000 Membership Rewards® Points after you spend $6,000 in eligible purchases on your new Card in your first 6 months of Card Membership. Welcome offers vary and you may not be eligible for an offer. Apply to know if you’re approved and find out your exact welcome offer amount – all with no credit score impact. If you’re approved and choose to accept the Card, your score may be impacted.
- Earn 4X Membership Rewards® points per dollar spent on purchases at restaurants worldwide, on up to $50,000 in purchases per calendar year, then 1X points for the rest of the year.
- Earn 4X Membership Rewards® points per dollar spent at US supermarkets, on up to $25,000 in purchases per calendar year, then 1X points for the rest of the year.
- Earn 3X Membership Rewards® points per dollar spent on flights booked directly with airlines or on AmexTravel.com.
- Earn 2X Membership Rewards® points per dollar spent on prepaid hotels and other eligible purchases booked on AmexTravel.com.
- Earn 1X Membership Rewards® point per dollar spent on all other eligible purchases.
- $120 Uber Cash on Gold: Add your Gold Card to your Uber account and get $10 in Uber Cash each month to use on orders and rides in the U.S. when you select an American Express Card for your transaction. That’s up to $120 Uber Cash annually. Plus, after using your Uber Cash, use your Card to earn 4X Membership Rewards® points for Uber Eats purchases made with restaurants or U.S. supermarkets. Point caps and terms apply.
- $84 Dunkin' Credit: With the $84 Dunkin' Credit, you can earn up to $7 in monthly statement credits after you enroll and pay with the American Express® Gold Card at U.S. Dunkin' locations. Enrollment is required to receive this benefit.
- $100 Resy Credit: Get up to $100 in statement credits each calendar year after you pay with the American Express® Gold Card to dine at U.S. Resy restaurants or make other eligible Resy purchases. That's up to $50 in statement credits semi-annually. Enrollment required.
- $120 Dining Credit: Satisfy your cravings, sweet or savory, with the $120 Dining Credit. Earn up to $10 in statement credits monthly when you pay with the American Express® Gold Card at Grubhub, The Cheesecake Factory, Goldbelly, Wine.com, and Five Guys. Enrollment required.
- Explore over 1,000 upscale hotels worldwide with The Hotel Collection and receive a $100 credit towards eligible charges* with every booking of two nights or more through AmexTravel.com. *Eligible charges vary by property.
- No Foreign Transaction Fees.
- Annual Fee is $325.
- Terms Apply.
Rewards Rate
| 4X | Earn 4X Membership Rewards® points per dollar spent on purchases at restaurants worldwide, on up to $50,000 in purchases per calendar year, then 1X points for the rest of the year. |
| 4X | Earn 4X Membership Rewards® points per dollar spent at US supermarkets, on up to $25,000 in purchases per calendar year, then 1X points for the rest of the year. |
| 3X | Earn 3X Membership Rewards® points per dollar spent on flights booked directly with airlines or on AmexTravel.com. |
| 2X | Earn 2X Membership Rewards® points per dollar spent on prepaid hotels and other eligible purchases booked on AmexTravel.com. |
| 1X | Earn 1X Membership Rewards® point per dollar spent on all other eligible purchases. |
Intro Offer
You may be eligible for as high as 100,000 Membership Rewards® Points after spending $6,000 in eligible purchases on your new Card in your first 6 months of Membership. Welcome offers vary and you may not be eligible for an offer.As High As 100,000 points. Find Out Your Offer.Annual Fee
$325Recommended Credit
Credit ranges are a variation of FICO® Score 8, one of many types of credit scores lenders may use when considering your credit card application.Excellent to Good
Why We Chose It
There’s a lot to love about the Amex Gold. It’s a fan favorite thanks to its fantastic bonus-earning rates at restaurants worldwide and at U.S. supermarkets. If you’re hitting the skies soon, you’ll also earn bonus Membership Rewards points on travel. Paired with up to $120 in Uber Cash annually (for U.S. Uber rides or Uber Eats orders, card must be added to Uber app and you can redeem with any Amex card), up to $120 in annual dining statement credits to be used with eligible partners, an up to $84 Dunkin’ credit each year at U.S. Dunkin Donuts and an up to $100 Resy credit annually, there’s no reason that foodies shouldn’t add the Amex Gold to their wallet. These benefits alone are worth more than $400, which offsets the $325 annual fee on the Amex Gold card. Enrollment is required for select benefits.Pros
- 4 points per dollar spent on dining at restaurants worldwide and U.S. supermarkets (on the first $50,000 in purchases per calendar year; then 1 point per dollar spent thereafter and $25,000 in purchases per calendar year; then 1 point per dollar spent thereafter, respectively)
- 3 points per dollar spent on flights booked directly with the airline or with amextravel.com
- Packed with credits foodies will enjoy
- Solid welcome bonus
Cons
- Not as useful for those living outside the U.S.
- Some may have trouble using Uber and other dining credits
- You may be eligible for as high as 100,000 Membership Rewards® Points after you spend $6,000 in eligible purchases on your new Card in your first 6 months of Card Membership. Welcome offers vary and you may not be eligible for an offer. Apply to know if you’re approved and find out your exact welcome offer amount – all with no credit score impact. If you’re approved and choose to accept the Card, your score may be impacted.
- Earn 4X Membership Rewards® points per dollar spent on purchases at restaurants worldwide, on up to $50,000 in purchases per calendar year, then 1X points for the rest of the year.
- Earn 4X Membership Rewards® points per dollar spent at US supermarkets, on up to $25,000 in purchases per calendar year, then 1X points for the rest of the year.
- Earn 3X Membership Rewards® points per dollar spent on flights booked directly with airlines or on AmexTravel.com.
- Earn 2X Membership Rewards® points per dollar spent on prepaid hotels and other eligible purchases booked on AmexTravel.com.
- Earn 1X Membership Rewards® point per dollar spent on all other eligible purchases.
- $120 Uber Cash on Gold: Add your Gold Card to your Uber account and get $10 in Uber Cash each month to use on orders and rides in the U.S. when you select an American Express Card for your transaction. That’s up to $120 Uber Cash annually. Plus, after using your Uber Cash, use your Card to earn 4X Membership Rewards® points for Uber Eats purchases made with restaurants or U.S. supermarkets. Point caps and terms apply.
- $84 Dunkin' Credit: With the $84 Dunkin' Credit, you can earn up to $7 in monthly statement credits after you enroll and pay with the American Express® Gold Card at U.S. Dunkin' locations. Enrollment is required to receive this benefit.
- $100 Resy Credit: Get up to $100 in statement credits each calendar year after you pay with the American Express® Gold Card to dine at U.S. Resy restaurants or make other eligible Resy purchases. That's up to $50 in statement credits semi-annually. Enrollment required.
- $120 Dining Credit: Satisfy your cravings, sweet or savory, with the $120 Dining Credit. Earn up to $10 in statement credits monthly when you pay with the American Express® Gold Card at Grubhub, The Cheesecake Factory, Goldbelly, Wine.com, and Five Guys. Enrollment required.
- Explore over 1,000 upscale hotels worldwide with The Hotel Collection and receive a $100 credit towards eligible charges* with every booking of two nights or more through AmexTravel.com. *Eligible charges vary by property.
- No Foreign Transaction Fees.
- Annual Fee is $325.
- Terms Apply.