Guide: Credit Card Flexible Points
If you are looking to maximize the value of your credit card rewards and take your travels to the next level, flexible points (also known as transferable points) are the key.
Unlike cashback or airline miles, flexible points offer unparalleled versatility when it comes to redeeming them. In this guide, we will explain what they are, how they work, and which programs offer this type of points so that you can make the most of them.
What Are Flexible Points?
Flexible points are a type of reward that you can earn through credit cards and that offer multiple redemption options, the most important being the ability to transfer them to airlines and hotels' loyalty programs.
The main advantage of these points is that they are not limited to a single airline or hotel chain, which gives us flexibility and allows us to choose the best option according to our travel plans.
Main Flexible Points Programs
There are 6 credit card reward programs that offer flexible points. However, it is important to highlight that not all credit cards issued by these banks earn flexible points. These are:
1️⃣ Chase Ultimate Rewards (UR)
Main cards:
💳 Chase Sapphire Preferred® Card
Redemption options:
✔︎ Transfer to airlines such as United, Southwest, British Airways, and Singapore Airlines
✔︎ Transfer to hotels such as Hyatt and Marriott
✔︎ Redemption through the Chase Travel℠ portal (with 25-50% bonuses depending on the card) and as cashback at 1 CPP
2️⃣ American Express Membership Rewards (MR)
Main cards:
💳 The Platinum Card® by American Express
💳 The American Express® Gold Card
💳 Blue Business Plus Credit Card
Redemption options:
✔︎ Transfer to airlines such as Delta, Air Canada, ANA, and Avianca
✔︎ Transfer to hotels such as Hilton and Marriott
✔︎ Redemption through Amex Travel (usually at 1 CPP or less)
3️⃣ Citi ThankYou Points (TY)
Main cards:
💳 Citi Prestige (discontinued)
Redemption options:
✔︎ Transfer to airlines such as JetBlue, Air France/KLM, Eva Air, and Turkish Airlines
✔︎ Transfer to hotels such as Choice Hotels and Wyndham
✔︎ Redemption in the Citi Travel portal and as cashback at 1 CPP
4️⃣ Capital One Miles (C1)
Main cards:
💳 Capital One Spark Miles for Business
Redemption options:
✔︎ Transfer to airlines such as Air France/KLM, Air Canada, Virgin Atlantic, and Emirates
✔︎ Transfer to hotels such as Choice Hotels and Wyndham
✔︎ Redemption through the Capital One Travel portal at 1 CPP
5️⃣ Bilt Rewards
Main cards:
💳 Bilt Mastercard (the only one at the moment)
Redemption options:
✔︎ Transfer to airlines such as Alaska, Iberia, United, and Virgin Atlantic
✔︎ Transfer to hotels such as IHG and Hyatt
✔︎ Apply points to the payment of residential rent or down payment on a property
6️⃣ Wells Fargo
Main cards:
💳 Wells Fargo Autograph Journey® Card
Redemption options:
✔︎ Transfer to airlines such as Air France/KLM, Avianca, British Airways, and Virgin Atlantic.
✔︎ Transfer to hotels such as Choice Hotels
✔︎ Redemption in the Wells Fargo travel portal and as cashback at 1 CPP
Why Are They Better Than Other Rewards?
Unlike cashback, which has a fixed value, or airline miles that are limited to a single airline and its partners, flexible points allow access to different loyalty programs, providing greater flexibility and thus achieving greater value depending on how they are used.
For example, 60,000 Chase Ultimate Rewards points from the Chase Sapphire Preferred® Card can be worth:
$600 in cashback (1 CPP).
$750 in travel booked through the Chase portal (1.25 CPP).
$1,200 or more in flights or hotel stays if transferred to a partner program and redeemed strategically (2 CPP or more). Important: when transferring points, the value is variable; we will not always get 2 CPP or more. Transferring points is not always going to be the best option.
In contrast, if we earn $600 in cashback or non-flexible points, we will simply have $600, no more, no less.
CPP Metric
How to determine the value of points
The value we get for credit card points is measured using the Cent Per Point (CPP) metric. Generally, the higher the CPP, the better value we are getting and it is considered a “better redemption.” Let’s see how it is calculated with an example:
An airline ticket costs $500 or 25,000 points.
CPP: ($500 ÷ 25,000 points) x 100 = 2 CPP.
This means that each point had a value of 2 cents for this particular redemption.
Is 2 CPP a good value? Generally, yes. But this metric can vary drastically depending on the redemption. It is possible to get values below 1 CPP, which is terrible, or over 10 CPP, which is considered exceptional.
The goal is to maximize this figure, especially considering that international flights in premium cabins and stays in luxury hotels tend to offer a higher CPP.
1 CPP: Low-value redemptions (cashback, gift cards).
1.25 to 1.5 CPP: Redemptions on bank portals.
2-4 CPP: Strategic transfers to airlines and hotels.
4+ CPP: High-value redemptions (first class, premium hotel suites).
As a general rule, the higher the CPP, the greater the value you will receive from your points. The goal is to avoid redemptions of less than 1.25 CPP and seek opportunities that give you 2 CPP or more, especially on luxury flights and hotels.
How To Maximize The Value of Flexible Points?
Prioritize transfers to airlines and hotels
Direct redemptions in travel portals usually offer a value of 1.25 cents per point or less. However, by transferring your points to airlines and hotels, you can achieve significantly higher values, often above 2 CPP, especially for luxury travel.
Familiarize yourself with major loyalty programs
Not all airlines and hotels will offer regular redemptions at exceptional rates. It is essential to familiarize yourself with the major loyalty programs to identify redemption opportunities that provide good value for your points.
Take advantage of transfer bonuses
Frequently, credit card programs offer transfer bonuses of 20% or more to certain partners. This can significantly increase the value of your points.
Combine cards to maximize points
Using our credit cards strategically, based on our spending categories, will help us accumulate the most flexible points possible. For example:
Use The American Express® Gold Card for restaurants and supermarkets (4X points)
Use the Chase Sapphire Reserve® for travel (3X points)
Use the Bilt Mastercard to pay rent without fees
Use the Capital One Venture for other everyday purchases
To The Point
Flexible points are the best tool to maximize the value of credit card rewards and are the key to traveling with points and miles. Thanks to their versatility and the ability to transfer them to airlines and hotels, you can book trips that would otherwise be nearly unattainable.
Choose your cards wisely and use the points strategically. You will not only save thousands of dollars on travel but also experience amazing things without spending a fortune.
