Why Do Chase and TPG List Different Values for Ultimate Rewards Points?

Sep 3, 2019

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Reader Questions are answered twice a week by TPG Senior Points & Miles Contributor Ethan Steinberg.

Before you start signing up for your first travel rewards credit cards, it’s important to have some idea of what you plan to do with those points and how much value you can expect to receive in exchange for your spending and credit inquiry. TPG reader Jeanette wants to know why TPG and Chase value Ultimate Rewards points differently …

Often times when I’m reading your articles it says we receive more value by transferring our points. I have Chase Ultimate Rewards points and I am able to book flights and hotels via their portal. Should I be transferring them instead to get more value?


This is a great question, as it hits at the very core of what we strive to do every day here at TPG: Help our readers earn and redeem points at the maximum possible value.

Let’s start by looking at the value you can get from booking travel directly through the Chase portal. The Chase Sapphire Preferred Card is currently offering a welcome bonus of 60,000 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 describes this offer as follows:

“That’s worth $750 toward travel when redeemed through Chase Ultimate Rewards.”

This is because the Sapphire Preferred gets a 25% bonus over the standard award rate (1 point = 1 cent) when you redeem through Chase’s Ultimate Rewards portal. This makes each point worth 1.25 cents, so 60,000 points * 1.25 cents/point = $750 in value.

Note that this same rate applies to the Ink Business Preferred Credit Card. The issuer’s premium card — the Chase Sapphire Reserve — comes with a 50% bonus, making your points worth 1.5 cents each when redeemed directly through Chase Ultimate Rewards.

Chase uses this number to advertise because any Sapphire Preferred cardholder — with no extra effort or knowledge of points and miles — could redeem their sign-up bonus for $750 worth of travel. In fact, if you’re going through the Chase portal, it’s impossible to get lower than this. But you can do better.

Now let’s shift to TPG’s valuations. In the most recent version, Chase Ultimate Rewards points are pegged at 2 cents each. That number has fluctuated over time as the program has changed (especially after Chase dropped Korean Air as a transfer partner and United switched to dynamic pricing), but this number reflects the fact 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 and more.

That 2 cents isn’t a ceiling either; I’ve been able to redeem my 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.

So 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 take a look at this example of a one-way flight between Washington-Dulles (IAD) and Boston (BOS). The cash price of this ticket is only $80, which means Chase wants 5,354 points for it since I have a Sapphire Reserve. If you have a Sapphire Preferred instead, it would be ~6,400 points.

United, on the other hand, wants 10,000 miles for the exact same flight. When cash prices are incredibly low, you can often come out ahead booking directly through the Chase portal. While this is obviously 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.

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

Bottom Line

The different rates at which TPG and Chase value Ultimate Rewards points is simple. Chase is speaking to a very broad audience and offering the minimum amount you’re guaranteed to receive when redeeming your card sign-up bonus for travel. TPG’s requires a bit more time and effort 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.

Thanks for the question, Jeanette, and if you’re a TPG reader who’d like us to answer a question of your own, tweet us at @thepointsguy, message us on Facebook or email us at info@thepointsguy.com.

Featured photo by Benji Stawski/The Points Guy.

2019 TPG Award Winner: Premium Card of the Year
Chase Sapphire Reserve®

SIGN-UP BONUS: 50,000 Points


CARD HIGHLIGHTS: 3X points on all travel and dining, $300 annual travel credit, points transferrable to over a dozen travel partners

*Bonus value is an estimated value calculated by TPG and not the card issuer. View our latest valuations here.

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More Things to Know
  • Earn 50,000 bonus points after you spend $4,000 on purchases in the first 3 months from account opening. That's $750 toward travel when you redeem through Chase Ultimate Rewards®
  • $300 Annual Travel Credit as reimbursement for travel purchases charged to your card each account anniversary year
  • 3X points on travel immediately after earning your $300 travel credit. 3X points on dining at restaurants & 1 point per $1 spent on all other purchases. $0 foreign transaction fees.
  • Get 50% more value when you redeem your points for travel through Chase Ultimate Rewards. For example, 50,000 points are worth $750 toward travel
  • 1:1 point transfer to leading airline and hotel loyalty programs
  • Access to 1,000+ airport lounges worldwide after an easy, one-time enrollment in Priority Pass™ Select
  • Up to $100 application fee credit for Global Entry or TSA Pre✓®
  • One Year Complimentary Lyft Pink ($199 minimum value). Complimentary DashPass subscription from DoorDash after activating by 12/31/21.
Intro APR on Purchases
Regular APR
16.99%-23.99% Variable
Annual Fee
Balance Transfer Fee
Either $5 or 5% of the amount of each balance transfer, whichever is greater
Recommended Credit
Excellent Credit

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