Why do Chase and TPG list different values for Ultimate Rewards points?

Jun 17, 2021

This post contains references to products from one or more of our advertisers. We may receive compensation when you click on links to those products. Terms apply to the offers listed on this page. For an explanation of our Advertising Policy, visit this page.

Editor’s note: This is a recurring post, regularly updated with new information.


Before you start signing up for your first travel rewards credit card, it helps to know how much value you can expect to receive in exchange for your spending and credit inquiry. A big question you may have is why TPG and Chase value Ultimate Rewards points differently.

This is a great question, as it hits at the very core of what we strive to do here at TPG: Help our readers earn and redeem points at the maximum possible value. So in this article, we’ll give you a look at why we value Chase Ultimate Rewards points so high and why there’s a discrepancy between our valuation and Chase’s published valuation.

For more TPG news delivered each morning to your inbox, sign up for our daily newsletter.

Why TPG and chase value Ultimate Rewards points differently

Iberia A350 business class seat
(Photo by Christian Kramer/The Points Guy)

Let’s start by looking at the value you can get from booking travel directly through the Chase Ultimate Rewards Travel Portal. The Chase Sapphire Preferred Card is currently offering a sign-up bonus of 100,000 Ultimate Rewards points after you spend $4,000 on purchases in the first three months from account opening, making it one of the most valuable card offers available right now.

Chase Sapphire Preferred cardholders get a 25% bonus over the standard award rate (1 point = 1 cent) when redeeming through Chase’s Ultimate Rewards portal. This makes each point worth 1.25 cents, so 100,000 points is equal to $1,250 in value.

Chase uses this number for advertising because any Sapphire Preferred cardholder — with no extra effort or knowledge of points and miles — can redeem their sign-up bonus for $1,250 worth of travel. It’s impossible to get less value when redeeming through the Chase Travel portal. Note that this same rate applies to the Ink Business Preferred Credit Card.

On the other hand, the issuer’s most premium card — the Chase Sapphire Reserve — comes with a 50% bonus, making your points worth 1.5 cents each when redeemed directly through the travel portal. The Sapphire Reserve is currently offering a sign-up bonus of 60,000 Ultimate Rewards points after spending $4,000 in the first three months, which would be worth $900 if you redeem those points for travel through the Chase portal.

Related: When to book travel through Chase and when to transfer points

TPG considers transfer partners and high-value redemptions

Now let’s shift to TPG’s monthly valuation of points and miles. We currently value Chase Ultimate Rewards points at 2 cents each. This number has fluctuated over time as the program changed (especially after Chase dropped Korean Air as a transfer partner and United switched to dynamic pricing).

This number considers that you can often get a higher redemption value by transferring to travel partners instead of going through the Chase portal. This is especially true for some of Chase’s top travel partners, including Hyatt, United, British Airways Avios and more.

For example, you can redeem Ultimate Rewards points for paid stays through the travel portal at the same 1.25-cents-per-point value. A one-night weekend stay at the Andaz 5th Avenue in June costs $500.37 after taxes and fees. You can cover the stay with 40,029 Ultimate Rewards points.

Andaz 5th Avenue Chase portal booking
(Screenshot courtesy of Chase)

Alternatively, you can book the same room by transferring 25,000 Ultimate Rewards points to World of Hyatt. This saves you over 15,000 points and gives you just over 2 cents per point in value.

Andaz 5th Avenue World of Hyatt booking
(Screenshot courtesy of Hyatt)

Of course, 2 cents isn’t the ceiling either. I’ve redeemed Chase points for as much as 11 cents each by transferring them to United to book a Lufthansa first-class award.

TPG settled on the 2-cent-per-point valuation because that’s what a general reader can realistically attain by leveraging transfer partners thanks to high-value international premium-class redemptions, along with high-priced domestic travel. This is the value of transferable point currencies.

While you can generally get more value from transferring your points to a travel partner, that won’t be true in every case. You’ll ultimately need to run the numbers for yourself and see which avenue costs the least amount of points. Let’s look at this example of a one-way flight between Chicago-O’Hare (ORD) and Newark (EWR). The cash price of a standard economy ticket is  $154.40, which means you’ll need 12,352 Chase points with a Sapphire Preferred. If you have a Sapphire Reserve instead, it would be 10,293 points.

ORD to EWR award ticket on the Chase travel portal
(Screenshot courtesy of chase.com)

United, on the other hand, charges 15,000 miles and $5.60 for the same flight. When cash prices are low, you can often come out ahead by booking directly through the Chase portal. While this is a personal decision, if prices are so low, you might want to think about saving your points entirely for another trip and paying cash instead. Also, note that you’ll earn airline miles when you book through the portal since your ticket is coded as a cash fare.

ORD to EWR United award ticket
(Screenshot courtesy of united.com)

If you’re still learning how to leverage transfer partners to redeem your Ultimate Rewards points, make sure to check out these guides:

Related: The best Chase credit cards of 2021

Bottom line

When Chase values Ultimate Rewards, it’s speaking to a broad audience and offering the minimum amount you’re guaranteed to receive when redeeming your card sign-up bonus for travel. For legal reasons, Chase can’t promise that you’ll get anything more than that even though it’s entirely possible to do so by leveraging the right transfer partners.

That’s where TPG comes in. Our valuation requires a bit more time and effort to achieve but often results in a higher payoff. It’s one of the most important shifts that an award enthusiast can take: moving beyond simple, fixed-value redemptions. And while TPG’s valuation is by no means the maximum, it’s a better reflection of what savvy travelers can aim for with just a little bit of additional work.

With all this in mind, always check and see if the Chase Ultimate Rewards portal or a transfer partner is your best bet for booking awards. This has the potential to save you thousands of points per booking, letting you stretch your points even further.

Featured photo by Wyatt Smith/The Points Guy

Additional reporting by Andrew Kunesh

Editorial Disclaimer: Opinions expressed here are the author’s alone, not those of any bank, credit card issuer, airlines or hotel chain, and have not been reviewed, approved or otherwise endorsed by any of these entities.

Disclaimer: The responses below are not provided or commissioned by the bank advertiser. Responses have not been reviewed, approved or otherwise endorsed by the bank advertiser. It is not the bank advertiser’s responsibility to ensure all posts and/or questions are answered.