Smart Travel: Upgrade Your Getaways – Episode Summary

Episode: When and How to Transfer Credit Card Rewards Points To Get The Most Value
Release Date: April 23, 2025
Hosts: Sally French & Meghan Coyle, NerdWallet Travel

Introduction to Credit Card Points Transfers

In this episode of Smart Travel: Upgrade Your Getaways, hosts Sally French and Meghan Coyle dive deep into the intricacies of transferring credit card rewards points to maximize their value for travel. The conversation begins with an engaging game that sets the stage for the episode's focus.

Credit Card Points: Truth or Myth

00:00 – 01:24

Megan Coyle kicks off by challenging Sally French with a statement: "The best way to use your credit card points is to transfer them to airline or hotel loyalty programs instead of booking travel through your credit card's travel portal." Sally responds thoughtfully, highlighting that the effectiveness of transferring points depends on selecting the right transfer partners. She emphasizes the importance of understanding which transfers yield the best value.

Transfer Bonuses: Maximizing Point Value

01:24 – 02:18

Sally introduces current transfer bonuses, such as an 80% transfer bonus from Chase Ultimate Rewards to IHG (Intercontinental Hotels Group), which includes brands like Holiday Inn and Crowne Plaza. Megan adds that American Express is offering a 20% transfer bonus to Aeromexico Club Premiere or Etihad Guest, and Capital One provides a 30% bonus to Virgin Atlantic Flying Club until mid-May 2025. These bonuses significantly enhance the value of transferred points, turning what might seem like ordinary transfers into highly lucrative opportunities.

Upcoming Travel Regulations and Airline Updates

02:18 – 06:04

The duo transitions to discussing important travel updates:

• Real ID Requirement: Effective May 7, 2025, travelers must possess a REAL ID-compliant identification or alternative approved IDs like a US passport to board domestic flights. Sally shares her recent airport experience reinforcing the urgency of this requirement.

  Sally French [02:54]: "Other approved type of IDs include a US passport or passport card. Your Global Entry card will also work if you have that."

• Free In-Flight Wi-Fi:

  • American Airlines will offer free Wi-Fi on most flights starting January 2026.
  • Delta Airlines already provides free Wi-Fi for Delta SkyMiles members on most domestic flights.
  • United Airlines is rolling out Starlink Wi-Fi, offering free service for MileagePlus members, with broader implementation expected by year's end.

  Megan Coyle [03:37]: "American Airlines is introducing free WI Fi on most of its planes starting in January 2026."

• United Airlines Adjustments: Due to weak demand for certain routes, United is reducing flights during off-peak times, which could affect travelers seeking budget-friendly options.

• Frontier Miles Elite Status: Members of Southwest Rapid Rewards can purchase Frontier Miles Elite Gold status for $40 before April 30, 2025, offering substantial savings for frequent Frontier flyers.

Understanding Points Transfers: Benefits and Best Practices

07:02 – 15:55

The core of the episode focuses on the strategic transfer of credit card points:

• Baseline Value of Points: Typically, credit card points are worth about $0.01 each when redeemed for cash back or through the issuer's travel portal. However, exceptions exist, such as:

  NerdWallet Expert [07:33]: "Most credit card points are worth about $0.01 per point as a baseline value."

  • Chase Sapphire Preferred & Reserve: Offer higher redemption rates of 1.25 cents and 1.5 cents per point, respectively, when booking through Chase's travel portal.
  • American Express: Generally offers $0.01 per point, but certain redemptions like specific hotels or rental cars may reduce this value to 0.7 cents per point.

• Transfer Partners: Transferring points to airline or hotel loyalty programs can unlock higher values, often exceeding 1.5 cents per point. Notable partners include:

  • Hyatt: Valued at over 2 cents per point when transferred from Chase Ultimate Rewards.
  • Hawaiian Airlines: Offers a 1:1 transfer ratio with American Express, which can be advantageous, especially with Alaska Airlines' acquisition area.
  • Flying Blue (Air France & KLM): Frequently runs promotions, allowing substantial savings on international flights.

  Sally French [16:11]: "Chase's best transfer partner by far is Hyatt. Hyatt points are worth more than 2 cents most of the time."

• Transfer Ratios and Bonuses: While many programs maintain a 1:1 transfer ratio, some, like Capital One's transfer to JetBlue, are less favorable (5:3 ratio). It's crucial to perform the math to ensure the transfer offers better value than redeeming points directly.

  NerdWallet Expert [11:31]: "As a rule of thumb, you want to avoid transferring your points to a partner that has less than a one to one ratio."

• Strategic Transfers: Points should only be transferred when you have a specific redemption in mind to prevent value loss and ensure availability.

  Sally French [13:21]: "Don't just speculatively transfer your Chase points. Instead, transfer them when you know exactly what you want to book."

Tools and Resources for Optimizing Points

15:55 – 19:59

The hosts recommend several tools to help travelers maximize their points:

• Points Path Plugin: Integrates with Google Flights to display point prices and suggests when using points offers better value than cash.

  Sally French [20:11]: "With Points Path, it will show points prices on Google flights and suggest if it's a better deal to use points versus cash."

• Award Search Tools: Websites like Points.com, Seats, Arrow Points, and Rome help compare point valuations across airlines and hotels.

• NerdWallet’s Own Resources: Comprehensive guides and up-to-date lists of transfer bonuses are available on their website, aiding travelers in making informed decisions.

Listener Q&A: Managing Credit Card Points and Fees

23:07 – 25:30

A listener queries advice on handling an Alaska Airlines credit card, particularly wanting to retain credit history without paying the annual fee. Sally and Megan suggest:

• Product Switching: Contacting the issuer (Bank of America) to downgrade to a no-annual-fee card while retaining the original account history.

  Sally French [24:01]: "NerdWallet's normal advice would be to downgrade cards instead of canceling them to retain your credit history."

• Retention Offers: Sometimes, issuers may offer incentives to keep the card, such as bonus miles, if the cardholder agrees to increased spending.

Hot Takeoff: Edible Points

25:30 – 27:48

In their lighthearted segment, the hosts discuss the concept of "edible points," drawing parallels between points and consumable items like croissants. They explore how some credit cards allow points to be used for dining experiences:

• Chase: Offers points redemption for dining at various establishments, including upscale culinary experiences.

• American Express Gold Card: Provides substantial rewards and statement credits for dining and supermarket purchases, alongside partnerships with Resy for exclusive dining perks.

  Sally French [27:10]: "The Amex Gold also earns four Membership Rewards points at restaurants worldwide on up to $50,000 per calendar year."

Despite the playful analogy, they underline the practical benefits of leveraging points for dining perks, enhancing the overall travel and lifestyle experience.

Conclusion and Final Tips

27:48 – End

Sally and Megan wrap up the episode by reiterating the importance of strategic points transfers and utilizing available resources to maximize value. They encourage listeners to stay informed through NerdWallet’s comprehensive guides and to engage with the NerdWallet community for personalized travel strategies.

Sally French [28:00]: "Thanks for listening. We hope you're inspired to keep your passport full and your wallet even fuller."

Key Takeaways:

1. Transfer Wisely: Only transfer points when you have a specific redemption in mind to ensure maximum value.
2. Leverage Bonuses: Keep an eye out for transfer bonuses to amplify your points’ worth.
3. Use the Right Tools: Utilize plugins and award search tools to find the best deals and value for your points.
4. Maintain Credit Health: Consider product switching over canceling cards to preserve credit history and score.
5. Explore Diverse Redemption Options: Beyond flights and hotels, explore dining and other lifestyle perks to fully utilize your points.

For more detailed strategies, transfer bonus updates, and tools to optimize your travel budget, visit NerdWallet's Travel Section.

This summary is based on the transcript provided and aims to encapsulate the episode's essential discussions and insights.