What are points & miles?
5 minute read
The basic idea
When you pay for something with a rewards credit card, your bank gives you a small portion of that spending back — not as cash, but as points or miles. Those points can later be redeemed for travel, cash back, gift cards, or other rewards.
Think of it like a store loyalty card — except instead of coffee stamps, you're earning currency that can pay for flights, hotel stays, and upgrades.
The three types of rewards
Not all rewards cards work the same way. There are three main types:
1. Cash back
Simple and predictable. Earn 1–2% back as a statement credit or direct deposit. A $2,000 monthly spend at 2% = $40 back. Value is always exactly 1¢ per point. Great if you want simplicity, but you leave most of the value on the table.
2. Airline & hotel co-brand miles
Cards like the Delta SkyMiles Reserve or United Quest earn miles for a specific airline. The points are locked to that one program — you can only redeem them there. Good if you fly that airline constantly, but inflexible if you don't.
3. Transferable points Most powerful
Chase Ultimate Rewards, Amex Membership Rewards, Citi ThankYou Points, Capital One Miles, and Bilt Points can all be transferred to multiple airline and hotel programs. One pool of points, many redemption options — use whichever partner has the best availability and value for your specific trip.
Why transferable points matter: a real example
Imagine you want to fly from Houston to London in business class. A cash ticket costs around $4,500.
With Chase Ultimate Rewards, you could transfer 70,000 points to British Airways Avios and book a business class seat on American Airlines for that same route for about $350 in taxes. The 70,000 points cost you maybe $700 worth of everyday spending to earn (at ~1¢ each in earning terms).
The math
Cash ticket
$4,500
Award ticket
70k pts + $350
Your 70,000 points just saved you ~$4,150 — that's almost 6¢ per point, vs. 1¢ for cash back.
What are points actually worth?
Points don't have a fixed value — it depends entirely on how you use them. Here's a rough guide:
| Redemption type | Value per point |
|---|---|
| Cash back / statement credit | ~1¢ |
| Chase Travel portal (pay with points) | 1.25–1.5¢ |
| Transfer to airline (economy) | 1.5–3¢ |
| Transfer to Hyatt (luxury hotel) | 2–8¢ |
| Transfer to airline (business/first class) | 5–16¢ |
The five transferable currencies
These are the programs you'll hear about most. Each has a different set of transfer partners:
Chase Ultimate Rewards (UR)
Cards: Sapphire Preferred, Sapphire Reserve, Ink Business Preferred
Transfer partners include: United, Hyatt, British Airways, Air France/KLM, Southwest, Singapore, and more
Amex Membership Rewards (MR)
Cards: Amex Gold, Amex Platinum, Amex Business Platinum
Transfer partners include: Air France/KLM Flying Blue, ANA, British Airways, Delta, Hilton, Marriott, and more
Citi ThankYou Points (TYP)
Cards: Citi Strata Premier
Transfer partners include: Turkish Airlines, Air France, Singapore, Qatar, Cathay Pacific, and more
Capital One Miles
Cards: Venture X, Venture
Transfer partners include: Air Canada, Turkish Airlines, Avianca, Wyndham, Singapore, and more
Bilt Points
Cards: Bilt Mastercard (earns points on rent!)
Transfer partners include: United, Hyatt, Alaska, American, Air France/KLM, and more