Beginners Guide To Credit Card Rewards: Transferable vs Fixed-Value Points

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The fundamentals of award travel are simple. Earn points and miles – redeem those points and miles for amazing travel experiences. Anyone can do it. Right? In theory, yes. But when first starting out, it can be a confusing hobby to be involved in.

There are hundreds of different rewards-earning credit cards on the market, each advertising its unique advantage over the competition, and it can be hard to weigh the value of different options without a firm understanding of each rewards currency.

Singapore Airlines A380 First Class Suites
Redeem transferable rewards points for luxury travel experiences like Singapore Airlines A380 First Class Suites

As an example, let's look at the term ‘points.'. You want a credit card that earns points, but what kind of points? Rewards points can refer to retail points, hotel points, fixed-value points, flexible or transferable points, points you can only redeem as cash back, or airline points for revenue-based programs like TrueBlue and Rapid Rewards (and occasionally distance-based programs – we're looking at you Qantas…). For someone new to the game it’s information overload.

In this post, we want to clarify the difference between fixed-value points and transferable or ‘flexible’ points.

What's the Difference Between Transferable and Fixed-Value Points?

Transferable rewards currencies like Ultimate Rewards and Membership Rewards transfer to a variety of airline and hotel partners. It’s easy to earn them in bulk using category bonuses, regular promos, and point bonuses, and, while you can redeem them for a fixed value through their respective travel portals, you’ll get exponentially higher value transferring to partners for premium cabin award flights, and luxury hotel stays.

You can typically redeem fixed-value points against any expense that codes as travel, from taxi fares to campground fees, hostels, hotels, Airbnb, flights you can’t redeem points or miles for, or even the taxes and fees attached to your flights. There is no such thing as a ‘good' or ‘bad' redemption value for fixed-value points like Barclaycard Arrival Miles; you get a penny value for every point.

  • Fixed-Value Points – Have an assigned value (typically 1-2¢ per point), redeem points against the cash price of ticket/service you purchase (i.e. $1,000 airfare = 100,000 points), earn points and miles for airline & hotel bookings, cannot transfer to airline or hotel partners, ideal for miscellaneous travel expenses, when there is no available award space, cheap domestic airfares, rental cars, cheap hotels, and accommodation not part of a traditional rewards program such as Airbnb.
  • Transferable or Flexible Points – Transfer to a variety of airline and hotel partners to take advantage of award chart sweet spots, or redeem for fixed value through a travel portal, best for premium cabin international awards traveling in first or business-class and luxury hotel stays.

Fixed-value points are the workhorses of the award travel world, wiping out expenses we would otherwise need to pay with cash. Think award fees and taxes or an Airbnb hundreds of miles from the nearest chain hotel. Flexible points, on the other hand, can be leveraged for the kind of luxury travel most of us couldn't usually afford. Flying in business and first-class where cash prices warrant thousands of dollars per ticket and staying in $800+ per night hotels. Very different uses but both essential to a successful award travel strategy. That isn't to say you can't use transferable points for economy class and lower-priced hotels where you'll still receive excellent value; we're covering the extreme.

Credit Cards That Earn Fixed-Value Points

There are three primary fixed-value rewards currencies:

  • Barclaycard Arrival Miles
  • US Bank Altitude Rewards
  • Capital One Venture Miles

Both Barclays and Capital One label their rewards ‘miles,’ but in reality, when used for travel, they are points with a fixed-value of 1¢ per point, and cannot be transferred to airline frequent flyer programs. Venture Miles are the exception in this group. You can redeem Venture Miles for a fixed-value of 1¢ per mile towards any travel expense, or, transfer them to 15 different airline partners.

  • U.S. Bank Altitude® Go Visa Signature® Card – Earn 20,000 bonus points when you spend $1,000 in eligible purchases within the first 90 days of account opening. That's a $200 value redeemable towards merchandise, gift cards, cash back, travel and more. 4X points on dining, takeout, and restaurant delivery. 2X points on streaming services. Plus, a $15 credit for annual streaming purchases like Netflix, Hulu, Spotify®, Apple Music, Disney+, HBO Max and more! 2X points at grocery stores, grocery delivery, gas stations, and EV charging stations. 1X point on all other eligible purchases. $0 annual fee.
  • Capital One Venture Rewards Credit Card – Enjoy a one-time bonus of 75,000 Miles once you spend $4,000 on purchases within 3 months from account opening Plus, you'll earn 2x Venture Miles per dollar on every purchase which you can redeem as a statement credit against any travel purchase. This card has no foreign-transaction fees and an annual fee of $95.

Capital One Venture Rewards Credit Card
Capital One Venture Rewards Credit Card
Annual Fee$95
Welcome Offer Enjoy a one-time bonus of 75,000 Miles once you spend $4,000 on purchases within 3 months from account opening.
Following the revamp of Capital One's rewards program and the addition of airline transfer partners, the Capital One Venture has catapulted into our list of top travel rewards cards. The ability to earn 2X miles on every purchase provides a decent return on spending. Plus the card offers some great perks.
  • Earn 75,000 Miles once you spend $4,000 on purchases within 3 months from account opening; worth $750 in travel if redeemed for a fixed-value, or potentially much more when transferred to airline partners
  • 2 Miles on every purchase
  • Fee credit for Global Entry or TSA Pre✔® (up to $100)
  • No foreign transaction fees
  • $95 annual fee
  • 2 Miles per dollar on every purchase, every day. 5 Miles on hotels and rental cars booked through Capital One Travel. 5 Miles per dollar when you book on Turo, the world’s largest car sharing marketplace, through May 16, 2023.

Credit Cards That Earn Transferable Points

Again, there are four bank-issued transferable rewards currencies, plus Marriott courtesy of its stellar list of 3:1 airline transfer partners.

We consider Ultimate Rewards the most valuable of the four bank rewards currencies due to the quality of airline and hotel transfer partners, and the Chase Sapphire Preferred® Card to be the best beginners travel rewards card currently available.

Chase Sapphire Preferred® Card
Chase Sapphire Preferred® Card
Annual Fee$95
Welcome Bonus Earn 80,000 bonus points after you spend $4,000 on purchases in the first 3 months from account opening. That's $1,000 when you redeem through Chase Ultimate Rewards®.
Our #1 recommended beginners rewards card featuring an 80,000-point signup bonus after you spend $4,000 on purchases in the first 3 months from account opening. This card comes with great benefits and earns valuable Ultimate Rewards points.
  • Earn 80,000 bonus points after you spend $4,000 on purchases in the first 3 months from account opening. That's $1,000 when you redeem through Chase Ultimate Rewards®.
  • Enjoy benefits such as a $50 annual Ultimate Rewards Hotel Credit, 5x on travel purchased through Chase Ultimate Rewards®, 3x on dining and 2x on all other travel purchases, plus more.
  • Get 25% more value when you redeem for airfare, hotels, car rentals and cruises through Chase Ultimate Rewards®. For example, 80,000 points are worth $1,000 toward travel.
  • With Pay Yourself Back℠, your points are worth 25% more during the current offer when you redeem them for statement credits against existing purchases in select, rotating categories
  • Count on Trip Cancellation/Interruption Insurance, Auto Rental Collision Damage Waiver, Lost Luggage Insurance and more.
  • 5X points on Lyft rides through March 2022
  • 5X points on travel purchased through Chase
  • 3X points on dining at restaurants worldwide
  • 3X points on eligible streaming services
  • 3X points on online grocery purchases (excluding Target, Walmart, and wholesale clubs)
  • 2X points on all other travel
  • 1X point per dollar spent on all other purchases

Get 5X points on travel purchased through Chase Ultimate Rewards (2X on other travel); 3X points on dining at restaurants including eligible delivery services, takeout and dining out; 3X points on streaming services; 3X points on online grocery purchases (excluding Target, Walmart, and wholesale clubs); and 1X on all other purchases, transfer points to BA, Singapore, United, JetBlue, and Hyatt, or redeem for 1.25¢ per point in the Chase Travel Portal, no foreign transaction fees, and great travel insurance benefits.

The Blue Business® Plus Credit Card from American Express
The Blue Business® Plus Credit Card from American Express
Apply Now
Rates & Fees
(Terms Apply)
The Blue Business® Plus Credit Card from American Express
Annual FeeNo annual fee
Welcome Offer Earn 15,000 Membership Rewards® points after you spend $3,000 in eligible purchases on the Card within your first 3 months of Card Membership.
The best credit card available for non-bonus business expenses. You'll receive 2X Membership Rewards points for every $1 spent up to the first $50,000 per year, then 1x. Points transfer to travel partners without the need to hold other cards. The introductory APR offer also makes the card a great option if you're looking for a low-cost method of financing capital purchases you intend to pay down in less than 12 months.
  • Earn 15,000 Membership Rewards® points after you spend $3,000 in eligible purchases on the Card within your first 3 months of Card Membership.
  • Earn 2X Membership Rewards® points on everyday business purchases such as office supplies or client dinners. 2X applies to the first $50,000 in purchases per year, 1 point per dollar thereafter.
  • You've got the power to use your Card beyond its credit limit* with Expanded Buying Power.
  • *The amount you can spend above your credit limit is not unlimited. It adjusts with your use of the Card, your payment history, credit record, financial resources known to American Express, and other factors.
  • 0.0% intro APR on purchases for 12 months from the date of account opening, then a variable rate, 13.99% - 21.99%, based on your creditworthiness and other factors at account opening.
  • No Annual Fee
  • Terms Apply
  • Rates & Fees
  • Earn 2X Membership Rewards® points on everyday business purchases such as office supplies or client dinners. 2X applies to the first $50,000 in purchases per year, 1 point per dollar thereafter.

Earn Earn 2X Membership Rewards® points on everyday business purchases such as office supplies or client dinners. 2X applies to the first $50,000 in purchases per year, 1 point per dollar thereafter., access the Amex Do More Business savings program.

Citi® Double Cash Card
Citi® Double Cash Card
Annual Fee$0
Welcome Offer 0% intro APR on balance transfers for 18 months. (After that, the (Variable) APR will be 14.74% - 24.74% based on your creditworthiness.)
The Citi Double Cash is a dynamic, no-annual-fee cash-back rewards card that allows you to earn 2% traditional cash back, or convert your rewards to ThankYou Rewards points at a 1:1 ratio (2x ThankYou points per $1). When paired with a premium ThankYou Rewards earning card, the Citi Double Cash is now the best card available for everyday, non-bonus purchases.

If you're looking to pay down debt or finance a larger purchase, this card also comes with one of the best available introductory APR offers on balance transfers.
  • 2% cash back on every purchase - 1% when you buy + 1% when you pay
  • 0% intro APR on balance transfers for 18 months. After that, the (Variable) APR will be 14.74% - 24.74% based on your creditworthiness
  • No annual fee
This card makes earning rewards simple with no need to worry about keeping track of bonus categories for purchases with specific types of merchants. You'll earn 2% cash back on every purchase—1% when you buy and 1% when you pay. Citi cash rewards now also convert to ThankYou points at 1:1 ($10 = 100 ThankYou points).

Earn 2% cashback on every purchase—1% when you buy and 1% when you pay. Citi cash rewards now also convert to ThankYou points at 1:1 ($10 = 1,000 ThankYou points).

Final Thoughts

One of the foundational keys of successful award travel is understanding the different types of reward points and miles, and how best to use them to maximize value.

Achieve your travel goals without spending thousands of dollars by pursuing a diverse and balanced portfolio of rewards-earning credit cards. Earn transferable points like Ultimate Rewards and transfer to airline partners for premium cabin awards, and fixed-value points like Arrival Miles to pick up fees, taxes, and incidental travel charges, reducing your out-of-pocket expenses as much as possible.

If you have any questions on the difference between fixed-value and flexible rewards points, please reach out in the comments.

For rates and fees of the cards mentioned in this post, please visit the following links: The Blue Business® Plus Credit Card from American Express (Rates & Fees)

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  • Well put together article. Lots of good info. Everyone has diff travel goals. Have to know which direction is best to steer the coarse toward redemption

  • I have both airline co-branded credit cards and Chase. I love the all the points! However, I will be possibly be canceling one if it doesn’t get used very often but only the ones that have an annual fee. I see the benefits of both my Chase cards more than any other one. I absolutely LOVE that I can redeem my Chase points and still get credit on AA or AS or UA, etc! My Chase card let me take a recent trip to see my family I wouldn’t have been able to pay for. Plus, soon it’ll help me with another family trip to travel with my brother’s family.

    Finding out about the different the cards and bonuses has really helped my family travel! My husband may not be happy with me opening cards, but he doesn’t complain when I don’t have to use the credit card to book travel. Yes often we have to to pay everything out right but mostly not. Plus, I’m trying to be smart about the cards I open that they have a high chance to remain with me, so I don’t have to constantly close cards and effect my credit score.

    All the comments and blogs here really help. I do not know why more people do not have AwardWallet memberships!

  • Every time I read articles like this one, I wonder — am I a schmuck for sticking with the same United Airlines Chase Card that I’ve had for 15+ years? I earn a ton of miles with it, but have not spent the time to research whether I could get a better deal with something else. Anyone out there switched away from a United Chase card to one of these cards and have any comments on their experience? Any regrets?

    • I tend to personally not stick with any airline co-branded credit card. I’d rather earn flexible rewards, such as Ultimate Rewards which transfer to United + other partners at no cost at a 1:1 rate.

  • Weird that some banks don’t allow transfer of points, as that is part of the value for many point systems.

  • I don’t even want to think about life without transferable points. 🙂

  • I would say that transferable points are always better unless you are getting a sign-up bonus

  • Transferable points ftw! This is a good post to share with beginners.

  • I need to look at getting the Barclaycard Arrival Plus card. Barclays in general looks more enticing because they don’t have Chase’s 5/24 rule or Citi’s 1/24.

  • When redeeming fixed value rewards for airfare, do the tickets issued qualify for mileage accrual on the airline?

  • Thanks for the info – looking at getting my first UR card when I am back under 5/24

  • Very useful post – thanks a lot

  • Transferable!

  • Another very interesting article. Thank you!

  • I like membership rewards for the characteristic of transferring points to several programmes when I need.
    This avoid buying some few amount of points/miles, which cost a lot actually.

  • excellent information

  • When buying an airline ticket with cash through the Chase Ultimate Rewards portal do you receive extra Ultimate Rewards Points? This is something that I really like about the Amex Travel — 5x the points when I’m booking through them and paying with my Platinum Card.

    I’d rather pay with points of course , but I don’t always have enough.

    Flexible points are the way to go…easy to book and you gain airline status!

  • Jacqueline parsons says:

    Great article, I have learnt a few things I didn’t know!

  • I wonder how much longer the game can continue. Billions of miles being issued, but airlines not providing the saver space to use those miles. (so devaluing instead) Shame we’ve all been trained to dream of First Class, instead of just collecting statement credits and buying travel the usual way.

  • great guide and I love AMEX points!

  • Some great information contained in this article, invaluable information for many starters in this game and others who may of glossed over the details.

  • I find that reservations made on the case redemption site are always more expensive than Expedia or other travel sites, which reduces the value of the 25% bonus to almost zero. Is there a way to get Chase to price match?

    • No, however, I don’t seem to find this being the case. Keep in mind you get an effective 50% bonus with the Sapphire Reserve card that offers a 1.5 cents/point in value when redeeming Ultimate Rewards for travel.

  • I’d like to see a trip review of someone who redeemed miles for singapore a380 first class please.

    • There are some great trip reports already published about those that have flown first class or suites with Singapore – I’d suggest a quick google search where you’ll find several reports.

  • I love UR and SPG points, and have given up collecting fixed reward points. I find that its no use to gather fixed reward points as transferable points would always provide superior value (as long as you use those on travel and know how to utilize them properly)

  • good introduction

  • those Singapore air seats look unbelievable!

  • Great post! Thanks.

  • I collect multiple airline miles and hotel points, my favorite is Chase UR points. My least favorite are AA miles, no saver award availability.

  • good introductory piece but as usual the devil is in the detail.

  • I love Chase UR points, and I have definitely gotten some great redemptions out of them.

  • angelo fonseca says:

    The most complete tutorial I have ever seen on the subject. Congratulations. Thank you for the informations.

  • thanks for the info

  • Bertrand Say says:

    I go for flexibility everytime.

    • +1. I certainly understand that folks have different travel priorities, but if one is looking for premium cabin flights and/or stays at aspirational hotel properties, then MR/UR/SPG &TY points are definitely the way to go, rather than any fixed-value currency.