Am I Overvaluing Transferable Points
Historically Ive thought that Ive taken a conservative approach to valuing points. Others value transferable points at two or more cents each, and personally I think thats aggressive. At the same time, I havent lowered my valuation of transferable points in years, and Im wondering if its time?
On the one hand, I feel pretty comfortable with my valuations. While some points currencies have been devalued, we also see quite a few transfer bonuses, which make up for many of those devaluations.
At the same time, were now at a point where you can earn 2x transferable points per dollar spent with cards like the Citi® Double Cash Card and Amex Blue Business Plus, so it does make me wonder if suggesting youre getting a 3.4% return isnt steep?
I guess it depends if you look at points valuation from the perspective of acquisition cost, or from the perspective of realistic redemption value. Id certainly welcome some opinions on this!
Can You Redeem Credit Card Miles For Any Flight
Unfortunately, many airlines place restrictions on the number of award flights they provide on any given plane. Booking in advance is always your best betand reading the fine print on your rewards card terms and conditions can help you uncover blackout dates that may limit your ability to book the flight you want.
Is There A Limit To How Much You Can Transfer
Yes, but the limit is determined by the issuing bank and your creditworthiness. For example, Chase caps balance transfers at $15,000 within a 30-day period. But theres no guarantee that youll get approved for a limit on a new card that high. If youre only approved for, say, a $5,000 limit on a balance transfer card with any bank, then $5,000 is going to be the maximum amount of debt you can carry on the new card.
Also remember that any balance transfer fees will count toward your limit and have to be factored in when doing a transfer. So, if youre approved for a $5,000 credit limit but theres a 5% balance transfer fee, youll only be able to transfer $4,750, since youll have to include a $237.50 balance transfer fee.
Bank Of America Unlimited Cash Rewards Credit Card
Best for unlimited 1.5% cash back
- This card is best for: Those seeking unlimited, uncomplicated cash back that never expires.
- This card is not a great choice for: Cash back maximizers who dont mind keeping track of a few bonus categories to earn a higher rewards rate.
- What makes this card unique? Bank of America Preferred Rewards members earn 25 percent 75 percent more cash back . That means Preferred Rewards members could earn a maximum of up to 2.62 percent cash back on every purchase.
- Is the Bank of America® Unlimited Cash Rewards credit card worth it? If youre a Preferred Rewards member, the boosted rewards rate makes this card a no-brainer. Otherwise, a flat rate of 1.5 percent cash back is becoming less competitive in the cash back market. But its still a solid rate, especially because its paired with a good balance transfer offer.
Jump back to offer details.
What Is A Balance Transfer Fee
A balance transfer fee is the amount youll be charged to move your debt from one card to another. Typically its 3% or 5% of the amount being transferred. Before applying for a balance transfer card its important to consider any fees you may have to pay as this will add onto your existing debt. Do the math to make sure youll actually end up saving money by doing a balance transfer.
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After The Balance Transfer Promotion Period Ends
Balance transfer promotions are, by their very nature, only available for a limited period of time.;
Once the promotional period ends, the cardâs regular interest rate on balance transfers will kick in. For instance, if you transferred over a $10,000 balance but only managed to pay off $5,000 during the promotional period, the remaining half you owe will accrue interest according to the cardâs standard balance transfer rate. Hence why itâs good to have a plan in place and try to pay off all or as much of your transferred balance as possible within the set promotional period.
If youâre transferring a particularly large balance or you suspect you wonât be able to pay off the transferred balance in its entirety within the promotional period, youâll want to try and scope out a credit card that has both a low balance transfer offer as well as a low standard rate.
For example, the BMO Preferred Rate Mastercard has a 3.99% balance transfer offer for the first nine months, but its regular interest rate after the promotional period is just 12.99% – which is still considerably lower than the average 19.99% found on most credit cards. On the other hand, the BMO CashBack Mastercard has a lower 1.99% balance transfer offer for nine months, but afterward, the interest rate on any remaining amount you transferred over will spike up considerably to 22.99%.;
How Much Are Transferable Points Worth
The above is my take on the pros and cons of transferable points, but how much is each point actually worth?;People often disagree about which transferable points currency is most valuable, and that makes sense, given that we all have different redemption goals.
For example, if youre a Hyatt loyalist then youll no doubt value Ultimate Rewards points a lot, since you can transfer points 1:1.
- I value Amex, Chase, and Citi points at ~1.7 cents each
- I value Capital One miles at ~1.1 cents each
If I had to prioritize Amex, Chase, and Citi points based on my personal redemption patterns, how would I do so? The truth is that my prioritization of these currencies depends on several factors. I always try to earn as many points per dollar as possible, but whats the tiebreaker?
- I look at which points currency I have the lowest balance of, so I can rebuild that
- I look at at what my future travel plans are, and which currency would come most in handy
My general thoughts are as follows:
- Chase points put me most at ease, because I can redeem them for 1.5 cents each towards expenses; I love that World of Hyatt is a transfer partner, but thats the only partner I truly value
- Amex and Citi have the edge for offering transfer bonuses with some frequency, which can help you earn even more points
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How To Convert Credit Card Points To Frequent Flyer Miles
14 steps1.Check your current credit cards rewards program. If you already have a credit card, check your card agreement or your issuers website to see whether you 2.Find a credit card with a frequent flyer mile reward program. If your current card doesnt offer points rewards or the chance to convert points to miles 3.Take advantage of any signup bonuses. Many credit cards offer signup bonuses that immediately credit your rewards account a large number of points if you
Understanding how to earn miles versus cash back, and choosing the right rewards credit card, can help you rack up free flights that much faster. Article;
You can transfer points from a Chase Sapphire Preferred or Reserve credit card to one of Chases airline partners. You can also book a flight on any major;6 answers; · ;Top answer:;There are 13 airlines you can use with the Chase Sapphire credit cards: Aer Lingus, British
What Is A Balance Transfer Credit Card
A balance transfer involves moving debt from one credit account to a different account, typically by using a balance transfer credit card that has a lower interest rate than the original account. A balance transfer card can help you pay off debt by transferring your existing balance to a new credit card with a 0% intro APR period. During that time, you have the chance to pay off the principal without having to pay interest.
Although balance transfers are primarily used for credit card debt, each issuer has its own rules for what types of debt you can transfer. Depending on the issuer, your balance transfer options could include:
- Student loans
- Payday loans
However, most issuers will not let you transfer a balance from an existing account with that same issuer. Also, some issuers let you transfer multiple debts to one balance transfer card, a form of debt consolidation.
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Make Sure You Make At Least The Minimum Payment
If you donât make at least the minimum payment every month , you could be disqualified from the credit cardâs promotional balance transfer offer and your interest rate could increase sharply. Make sure you have the cash on hand to meet your monthly payment obligations before you jump ahead and open a new balance transfer card.
The Platinum Card From American Express
The is another premium card that earns Amexs Membership Rewards currency.
With the Platinum Card, youll earn 5 Membership Rewards per dollar spent on airfare and hotels through amextravel.com, a $200 annual airline fee credit, monthly Uber credits and more.
Youll also get complimentary Hilton and Marriott Gold statuses.
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Should You Use One Credit Card To Pay Off Another
If youre looking to pay off one credit balance using another card, this generally isnt possible. Banks dont allow you to pay your credit card balance using another credit card. Typically, payments via check, electronic bank transfer or money order are the only acceptable methods of payment.
But a balance transfer credit card is the exception to that rule. If you can transfer a balance from a high-interest credit card to one with a 0% APR offer or even a lower ongoing interest rate, you can save money.
What Is The Balance Transfer Fee
Understanding balance transfer fees is one of the most important parts of having a balance transfer credit card. A balance transfer fee will be applied to whatever balance you are transferring onto your new card, usually at 3 or 5 percent of that balance amount. For example, if you have $10,000 in credit card debt to transfer, a balance transfer fee of 3 percent is equal to $300. A balance transfer fee of 5 percent would be $500. Its very important to be fully aware of any potential fees you incur on your card, as they could hamper your goals to pay down debt in a timely or more cost-effective manner. Look for cards with lower balance transfer fees.
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Can You Transfer Your Credit Card Miles To Someone Else
If you find that blackout dates or small mileage balances are preventing you from using your miles, you may be able to transfer your miles to a friend or donate your miles to a charity. Either option should be available through your credit card’s miles redemption page, although there are sometimes limits on how many miles you can transfer and how often you can perform transfers within a given time period.
Ihg Rewards Club Premier Credit Card
IHG points can be transferred to over 30 airline partners, with a transfer ratio of 10,000 points to 2,000 miles in most cases. The IHG® Rewards Club Premier Credit Card earns 25 points total per dollar when you stay at eligible IHG hotels, 2 points at gas stations, grocery stores, and restaurants, and 1 point on other purchases. New cardholders can earn 80,000 bonus points after spending $2,000 on purchases within the first 3 months of account opening. Additional benefits include Platinum Elite status and a Global Entry or TSA Pre® Fee Credit of up to $100 every four years. The annual fee is $89.
Info about the IHG® Rewards Club Premier Credit Card has been collected independently by Wise Bread. The issuer did not provide the details, nor is it responsible for their accuracy.
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American Express Membership Rewards
American Express Membership Rewards is a favorite transferable points currency, with a value of 2 cents per point according to TPGs latest valuations. These points can get you some incredible awards. Here are the various partners to which you can transfer your points, all with ratios of 1:1 unless otherwise noted:
- Aer Lingus AerClub
- Asia Miles
- Avianca LifeMiles
Amex also has three hotel programs as 1:1 transfer partners:
- Choice Privileges
Its also worth noting that American Express offers frequent transfer bonuses to these partners; the last 12 months alone have seen offers from Aeroplan, Avianca, British Airways and Virgin Atlantic, so keep your eye on your account for these offers to pop up.
With the large variety of options to use these points, it can be simple to maximize Membership Rewards for incredible travel, though youd first need to earn them. Here are the most popular cards that earn American Express Membership Rewards points:
While many of these have lucrative welcome offers, you could be targeted for an even higher bonus through the CardMatch Tool . If you want to earn the maximum amount of points, consider the Amex Trifecta, and once you have one of these cards set up for online account management, dont forget that the Amex Offers program can earn you thousands of additional bonus points.
Amex Transfer Partners: A Complete Guide
September 22, 2021 By Michael
When you think of Amex transfer partners, its airline partners come to mind first. Thats because of the high-value cardmembers receive when transferring points to Amex airline partners. Amex also has hotel partners that you can transfer your points. However, none of these hotel partners are too exciting when compared to World of Hyatts partnership with Chase Ultimate Rewards.
There are ways that you can redeem your Amex points other than transferring your points to its travel partners. But, dont expect to receive a ton of value. Redeeming Amex points for first and business-class award flights is likely to yield the best return with your hard-earned Amex points.
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Tpg Reader Question: Can I Earn Points And Miles On A Balance Transfer To My New Credit Card
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.
Editors note: This article is part of a weekly column to answer your credit card, points and miles and general travel questions. If you would like to ask us a question, tweet us at @thepointsguyuk, message us on;;or email us at;.
Credit cards come with various offers to attract applicants. These can range from a big welcome bonus of points and miles for spending a certain amount in your first, say, 90 days of holding the card. There could also be a lower introductory interest rate.
A popular offer for new cards is a balance transfer. You might be considering a new card because of a welcome bonus but have an existing balance on an existing card. If both cards come with an annual fee you might be too keen on paying annual fees for both cards. The new card issuer may offer you a balance transfer offer where you can move the balance owing from your existing card to your new card, close your existing card and just pay off the balance on your new card, as well as enjoy the benefits of a new card like the welcome bonus or travel perks.
This brings us to this weeks TPG reader question of the week.
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How Balance Transfers Affect Your Credit Score
Your overall debt load is a key component of your credit report and accounts for roughly 30% of your three-digit score. Most credit reporting agencies and lenders prefer you carry no more than 30% of your overall credit limit as debt. Anything more than that, and it could be seen as a sign youâre over-leveraged and over-reliant on credit.
The one thing to consider is that in order to gain access to the best balance transfer offers, youâll need to apply for a new credit card and undergo a hard credit check. While that can ding your credit score, credit inquiries only have a small and temporary impact. And in the grand scheme, your credit score and your wallet will benefit from carrying a lower debt load.