Transferable Points Programs

What are Transferable Points Programs

Transferable points programs permit customers to earn credit card points while utilizing certain credit cards, and those points can be transferred to any of their participating programs. So rather than just having points with one airline or inn, you can transfer points to several distinct ones.

BREAKING DOWN Transferable Points Programs

Transferable points programs offer options for customers, where one program could have four distinct airlines included. In that case, you could transfer your credit card rewards to any of those four airlines' loyalty programs. We should expect, for instance, you've been a lifelong United Airlines flyer. You conclude you need to go on an outing to Europe. Tragically, utilizing your United miles probably won't be the cheapest option for you. Fortunately you have points with a transferable points program that incorporates both United Airlines and British Airways. Since traveling to Europe with British Airways' partner, American Airlines, is less expensive than United, you've just saved yourself miles for a future trip.

Flexible Transferable Points Program

It's important to know how much flexibility a certain program gives, and how much flexibility you want. For instance, American Express might permit you to transfer points to 17 unique airlines, while Chase may just offer six distinct options. Keep as a primary concern, you will no doubt wind up paying for greater flexibility somehow. You might get more modest rewards for your purchases from additional flexible programs, or you might pay a higher annual fee than if you pick a less flexible one.

Transferable points can be beneficial when a points partner changes its program in a manner that decreases the value of the points you have earned. Airlines and inns reserve the option to change their rewards programs at whatever point they pick, which can be hindering to points holders. One more benefit of transferable points is the ability to exploit transfer bonuses. Credit card companies frequently offer discounts on transferring points to certain partners. For instance, a credit card company might offer a 25% discount to rewards individuals that transfer points to a specific airline during a certain month.

Other Credit Card Factors

While transferable points are a great benefit for some, it's not by any means the only factor to consider while choosing a credit card. Assuming that you fly on a similar airline the majority of the time, you might have the option to help better rewards through a credit card that is co-branded with that specific airline. Or on the other hand on the off chance that you travel rarely at best, a card that offers cash back might be a better decision for you.