We all know traveling can be expensive, but many credit cards offer rewards programs that allow you to earn points or miles that can then be transferred to airline and hotel loyalty programs. This allows you to redeem your credit card points for free flights, hotel stays, and other travel perks.
So when it comes time to redeem your hard-earned travel rewards, transferable points reign supreme. At least, they’re the most versatile currency in the points and miles world. Here’s how to transfer points to airline and hotel loyalty programs, and why this strategy is often the best way to get the most value from your rewards.
Why transfer your points?
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Let’s first take a look at why transferable points are a savvy move on your end.
More redemption options
Every travel program offers different awards and partner redemptions. Say you hoard a bunch of American Airlines AAdvantage miles. That’s great! But those rewards are limited to American and its partners. The beauty of transferable points is in the name. Instead of being tied to one airline or one hotel program, you can transfer your rewards to book the best available option for the lowest possible price. Transferring opens up more ways to use your points like international business class flights, luxury hotel stays, cruises, car rentals, and more.
Increased redemption value
Points are usually worth more when transferred to a travel partner’s program compared to just cashing them in for statement credits or gift cards. For example, Chase Ultimate Rewards are worth one cent per point towards cash back, but could be worth 1.5 cents or more per point when transferred to airlines.
Avoiding blackout dates
Booking award travel directly through an airline or hotel program allows access to more availability with fewer blackout dates compared to using points in your credit card’s travel portal.
How to transfer points
- Find out your credit card program’s travel partners. To keep using Chase Ultimate Rewards as an example, you’d have the ability to transfer to 13 different airlines and three hotel programs. Check which ones match your travel preferences.
- Log in to your credit card account online and locate the transfer points section, usually under the rewards dashboard.
- Select an airline/hotel program and input how many points you want to transfer and the applicable loyalty program account number you want to transfer to.
- Double-check details and submit the transfer request. Transfers can take a few days to process but are typically pretty fast.
- Once the transfer is complete, the points will show up in your selected loyalty program account and are ready to be redeemed for award travel based on that program’s redemption rates and rules.
It takes a bit of research but can really pay off, especially for expensive international trips in business or first class.
Consider a travel rewards card
If you’re a consistent traveler who is serious about getting the best points value for your lifestyle, then you should look into travel rewards cards. Two of the top examples are the Chase Ultimate Rewards and American Express Membership Rewards programs. Just make sure you’re earning enough points—and redeeming them regularly—to justify the card’s annual fee.
And as we’ve previously covered, our rule of thumb is to only bank points for what you plan to use in the next year or so. Otherwise, you might be throwing away their value.