The Big Secret: Transfer Partners
Here's something that surprises most beginners: 1 credit card point does not equal 1 cent.
When people say "I got 5 cents per point on that redemption," they're not exaggerating. The value of points is variable—and understanding this variability is the single most important concept in this hobby.
The secret? Transfer partners.
What Are Transfer Partners?
Transfer partners are airlines and hotels that have agreements with credit card programs to accept point transfers. When you transfer points, they convert 1:1 (or sometimes at other ratios) into airline miles or hotel points.
For example, Chase Ultimate Rewards has partnerships with United, Southwest, Hyatt, and many others. You can move your Chase points directly into any of these programs.
When you transfer points to an airline, you're no longer paying cash prices. You're paying with miles—and airlines price award seats differently than cash seats. Sometimes MUCH differently.
A Real Example
Let's say you want to fly from New York to Tokyo in business class. Here's what it might cost:
💵 Cash Price
$8,500
Round-trip business class
✈️ Points Price
70,000 miles
Via Virgin Atlantic (partner)
If you transferred 70,000 Chase points to Virgin Atlantic and booked this flight, you'd be getting:
$8,500 ÷ 70,000 = 12.1 cents per point
Compare that to using your points for a simple 1 cent per point cash redemption. Same points, twelve times the value.
Why Does This Work?
Airlines have award charts (or dynamic pricing) that determine how many miles a flight costs. These prices are set by the airline's loyalty program, not by supply and demand for cash tickets.
This creates opportunities. A business class seat that's expensive in cash might be "cheap" in miles because:
- The airline wants to fill empty premium seats
- The award pricing was set years ago and hasn't kept up with inflation
- Partner airlines offer better rates than the airline's own program
- Certain routes are simply underpriced in miles
The Transfer Process
Here's how it typically works:
- Earn points on your credit card through everyday spending
- Find an award flight you want to book (we'll teach you how later)
- Transfer points from your credit card to the airline program
- Book the award using your newly transferred miles
Transfers are usually instant or take a few minutes. Once transferred, the miles are in your airline account and can be used just like miles you earned from flying.
Transfers are one-way and irreversible. Once you transfer points to an airline or hotel, you cannot transfer them back. Always confirm award availability BEFORE transferring.
Not All Redemptions Are Created Equal
The same points can have wildly different values depending on how you use them:
This is why we recommend holding points in flexible programs and only transferring when you have a specific, high-value redemption in mind.
Key Takeaways
- Points don't have a fixed value—their worth depends on how you redeem them
- Transfer partners let you move credit card points to airline and hotel programs
- Transferring to airlines for premium cabin flights often provides the best value
- Always confirm availability before transferring (transfers are irreversible)
- Keep points flexible until you're ready to book something specific