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A friend of mine has been sitting on over 200,000 Chase Ultimate Rewards® points for nearly nine years. I don’t know what he’s saving them for… But I do know this: those points are worth way less today than they were a decade ago.
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Credit card rewards aren’t like fine wine. They’re more like Halloween candy. You can hang onto them for a little while, but leave them too long and most of your stash will be stale by the time you want to enjoy it.
If you’re sitting on a mountain of rewards, it’s time to use them! Here’s how to get good value.
Why points lose value the longer you wait
Just like cash, points get hit by inflation. Over time, the purchasing power shrinks and your redemptions can’t buy as much.
Airlines and hotels also regularly devalue their loyalty programs — meaning the same flight that cost 40,000 miles last year might now cost 65,000 or more. And the longer you wait, the more likely those sweet spots disappear.
Some programs give notice when they change their redemption charts, but others just pull the rug out overnight. That’s why hoarding isn’t a winning strategy.
Travel is usually the best way to redeem your points
If you’re aiming for maximum value, travel rewards usually beat cash back or gift cards. Especially when you’re willing to transfer points to airline or hotel partners.
For example, let’s say you have 100,000 Chase Ultimate Rewards® points.
You could redeem them for $1,000 cash back, statement credits, or most gift card redemptions.
Or for bookings via Chase travel, those same points could easily get you $1,500 to $2,000 in value for flights, hotels, or rental cars.
But even better, you could transfer those points to a hotel partner like Hyatt Hotels at a 1:1 transfer ratio. Then using those 100,000 World of Hyatt points for reward stays might get you between $2,500 and $3,000 in hotel stay value.
Sure, booking travel and finding transfer deals takes some effort. But it can be worth it for double or triple the points value.
Want to turn your points into plane tickets or five-star hotel stays? Browse the best travel credit cards and start earning smarter today.
How credit card point transfers work
Transferring points sounds complicated. But honestly, my mother-in-law figured it out and she still calls YouTube “The Google.”
Here’s the short version on how the transfer process works:
- First, log into your credit card rewards portal or mobile app.
- In the redemptions section you’ll see an option to “transfer points to partners,” where you’ll find the available transfer programs.
- Transfers usually happen at a 1:1 ratio, meaning 10,000 credit card points = 10,000 airline miles.
- Pick your transfer partner, and enter your account number with the rewards program you are transferring to (you’ll need to already have a rewards account set up with the transfer partner).
- Most transfers happen instantly, but sometimes they can take a couple days. Once points are transferred, they live in that new loyalty program (and can’t go back).
Each issuer has a unique list of transfer partners, and that’s where the value lies. Some of my favorite transfer combos include:
- Chase → Hyatt
- Amex → ANA
- Citi → American Airlines
- Capital One → Air Canada Aeroplan
Pro tip: Keep an eye out for limited-time transfer bonuses. These promos can boost your rewards by 20%-50%, adding even more value.
Best cards to unlock travel redemptions
If you’re already sitting on a pile of points (especially airline miles), use them! The longer you wait, the less valuable they become.
And if you’re interested in earning more rewards, check out these best credit cards for transferring points. Personally, I’m a huge fan of Capital One travel cards, but Chase and Amex have excellent transfer opportunities also.
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Motley Fool Money does not cover all offers on the market. Editorial content from Motley Fool Money is separate from The Motley Fool editorial content and is created by a different analyst team.Citigroup is an advertising partner of Motley Fool Money. JPMorgan Chase is an advertising partner of Motley Fool Money. American Express is an advertising partner of Motley Fool Money. Joel O’Leary has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Alphabet and JPMorgan Chase. The Motley Fool recommends Capital One Financial and Hyatt Hotels. The Motley Fool has a disclosure policy.
