How to Redeem Credit Card Points using Transfer Partners
I often get the question on how to redeem points collected with credit cards and if it’s a good deal. I’ve always stuck with my rationale of making sure you get at least $0.02 per point in value when making an award redemption otherwise you’d be better off with the 2% cash back Fidelity card. When I received a text from a friend asking if redeeming 42,880 Chase Ultimate Reward points for a $536 airline ticket was worth it I immediately replied and mentioned don’t do it. I’d hate to see those points go to waste. Of course if you obtained them with a signup bonus it’s still better than the 2% cash back on the minimum spend to earn the bonus but you mine as well maximize your redemption if possible.
Most credit card companies offer to redeem points for any flight, hotel, gift card, account credit or merchandise. These are always a horrible deal! I hope none of my readers will ever do this after reading this post. When using this method they assign a flat rate value of around $0.0075 to $.0125 per point value which isn’t good. You should just get the 2% cash back card if you are going to do this…
For the best value, always transfer your valuable points from your credit card company to an airline or hotel partner. Partner transfers are sometimes hard to find on their website but I’ll show you how to find them for AMEX, Citi & Chase below. Note, be careful and make sure the transfer ratio is 1:1.
AMEX Membership Reward Points
Airlines- AeroMexico, Air Canada, Alitalia, ANA (excellent values to be had to Japan), Asia Miles, British Airways (excellent values to be had), Delta, El Al, Emirates, Etihad, Flying Blue, Hawaiian Airlines, Iberia, JetBlue, Singapore Airlines (excellent values to be had), Virgin America, Virgin Atlantic (poor transfer ratio)
Hotels: Choice Hotels, Hilton HHonors, Starwood (poor transfer ratio)
Citi ThankYou Points (https://www.thankyou.com/partnerProgramsListing.jspx?cmp=nav&lid=sub-nav%7Cmore-ways-to-redeem%7Cpoints-transfer)
Airlines- Asia Miles, EVA, Etihad, Flying Blue, Garuda Indonesia, Malaysia Airlines, Qantas, Qatar, Singapore Airlines (excellent values to be had), Thai Airways, Virgin America, Virgin Atlantic
Hotels: Hilton HHonors
Chase Ultimate Rewards Points (https://ultimaterewardspoints.chase.com/transfer-points/list-programs?jp_ltg=UR2GlobalNav)
Airlines- British Airways (excellent values to be had), Flying Blue, Korean Air, Singapore Airlines (excellent values to be had), Southwest, United (excellent values to be had), Virgin Atlantic
Hotels: Hyatt (excellent values to be had), IHG, Marriott, Ritz-Carlton
Not sure which partner is best for your flight redemption? Check out www.awardace.com. You might be surprised!