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There is a “rule” that I've heard on many occasions: You should never speculatively transfer points. This applies especially to flexible bank points like American Express Membership Rewards and Chase Ultimate Rewards. For most points aficionados, the reason is obvious. “Flexible points” are just that: flexible. You don't want to lock them into a specific program without an immediate use.
But I am here to tell you why, on occasion, I deliberately depart from this community wisdom.
A Common Refrain: Don't Speculatively Transfer Points
As long as you keep your points as bank points, you retain all of their flexibility. This goes away the instant you complete a transfer to any travel partner. You can't reverse a points transfer, turning them back into bank points. It's a one-way street. Now, you can only redeem them with this one hotel/airline program.
I'll be honest that I've found myself with stranded points more than once. For example, I once transferred points during an Asia Miles transfer bonus and used them to book Cathay Pacific first class. It's not the most ideal use of miles, but I wanted to fly this top-notch product.
Then, COVID-19 hit. The trip was canceled. I didn't re-book it. Since my points were already converted to Asia Miles, I was now stuck with a stash of them. I ended up burning them — at least those about to expire — to fly American Airlines Flagship First from coast to coast. I'm glad that Asia Miles has since changed their expiration policy. I finally just used the last of my stash book an upcoming trip.
In this case, I didn't speculatively transfer my points, but it was still a lesson in dealing with a stranded balance. You'd think I'd want to avoid this. Yet, there are still reasons why I transfer points speculatively.
Why I Occasionally Break This “Rule”
The need to position for international flights is an unfortunate reality for me. I live in a rural area, about five hours by car from the closest major airport. In order to save the time and hassle, I do my utmost to position to San Francisco (SFO) when needed, rather than drive.
This means I fly the same little United Express hop a handful of times per year, if not more. Rather than use United MileagePlus miles, which I prefer to save for partner business class awards when flexibility is important, Avianca LifeMiles is my currency of choice. LifeMiles is the absolute cheapest as well. I can fly this short hop for just 7,500 LifeMiles. Cash prices can easily hit $200 each way, so this provides an excellent use of my Membership Rewards, Citi ThankYou Points, and Bilt Rewards. I often clear around 3 cents per point for these economy flights, which is the average value AwardWallet users get from the currency for business class.
Related: 511 United Award Routes That You Can Book for Just 6,500 Miles
Thus, I've found holding a small stash of LifeMiles to be extremely convenient. Sure, I could transfer points anytime I need them. I always have Membership Rewards on hand. But why not get the extra value by converting them to LifeMiles during a transfer bonus?
Sure, the program could kill this shorthaul sweet spot at any point. We've seen yet another no-notice devaluation. But I tend to use the miles quickly, so I'm happy to speculatively transfer points. I generally keep a balance of around 25,000 LifeMiles on hand.
It comes down to this: I have high confidence that I'll use the miles in the coming 6-12 months. Given this near-certainty, transferring points during a transfer bonus makes sense. As a recent example, I just transferred 5,000 Bilt points to LifeMiles during a recent Bilt Rent Day bonus.
Keeping LifeMiles in My Pocket: Some Real-Life Examples
Here are a few situations where having LifeMiles on hand was extremely useful for me:
- Booking a one-way positioning flight home after an international return to SFO
- Booking tickets for a long weekend in Arizona with my sons
- Scoring a same-day award ticket when returning home from visiting family at the hospital in San Francisco
- Multiple other one-way positioning flights to either SFO or LAX to complete an international itinerary
These are all very standard uses of points. However, I typically don't keep a balance with many international airline programs (e.g., Aeroplan, Emirates Skywards, or Etihad Guest), only transferring what I need when I need to use them. LifeMiles is my one exception, as I take advantage of transfer bonuses when they come up.
Final Thoughts
Sure, I am taking on some risk each time I speculatively transfer points to LifeMiles. The program could roll out a no-notice devaluation that reduces their value. It would be unfortunate, but I am willing take that risk.
If this sounds interesting, you can bookmark our page for Citi-LifeMiles transfer bonuses and Amex-LifeMiles transfer bonuses to check what's available and see updates when future bonuses roll around. Bilt Rewards may also roll out another transfer bonus. I know this decision isn't for everyone, but I wanted to highlight it since it is an unusual choice that diverges from conventional advice. It's definitely worked out for me over the past several years.
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