In case you have considered one of Chase’s cobranded credit cards, such because the Chase Sapphire Preferred Card, Chase Sapphire Reserve, Ink Business Preferred Credit Card or Chase Freedom Flex, it is possible for you to to earn Chase Ultimate Rewards points, which you’ll redeem via the Chase journey portal or by transferring them to airline and lodge accomplice applications. Chase factors can sometimes be transferred at a 1:1 ratio for many companions.
Nevertheless, taking advantage of transfer bonuses is among the greatest methods to stretch your stash of factors and miles for extra journeys and larger financial savings. However one factor it is best to know is that not all switch bonuses are deal.
Actually, some are offensively rotten. Do not be drawn into using a switch bonus simply because the switch ratio seems beneficiant.
Working example: You will obtain a 60% bonus whenever you switch Chase Ultimate Rewards factors to IHG One Rewards. The supply is at present legitimate till March 1. Whereas that will sound like a no brainer, we’ll present you why it is not the perfect worth in your factors.
Get a 60% bonus whenever you switch Chase Final Rewards factors to IHG
This is the easy motive switch bonuses are generally a nasty thought: All factors aren’t created equal.
For instance, TPG valuations discover that Chase Final Rewards factors are value 2.05 cents every — whereas IHG One Rewards factors are value simply 0.5 cents every.
Associated: What are points and miles worth?
Chase is at present providing a 60% bonus when transferring Final Rewards factors to IHG. You possibly can switch factors in increments of 1,000. Due to this fact, 1,000 Final Rewards factors would equal 1,600 IHG factors. However based mostly on TPG valuations, that is like buying and selling $20.50 value of Final Rewards factors for $8 value of IHG factors.
General, it is fairly a nasty deal except you want just some thousand extra factors for a specific award keep.
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Take the Holiday Inn Express Columbus — Ohio Expo Center. You possibly can reserve the lodge for twenty-four,000 IHG factors (or by transferring 15,000 Chase factors to IHG throughout this switch bonus).
TPG valuations estimate 16,000 Chase factors to be value $328. However the money fee for this identical room is simply $164 (not together with taxes and charges). In different phrases, even with this 60% bonus, the worth you may get in your Chase factors is under common.
Associated: When to transfer Ultimate Rewards and when to book directly
On this situation, you may save 2,139 Chase factors by forgoing the switch bonus and easily reserving the stick with factors via the Chase journey portal. Chase points are worth a fixed rate of about 1.25 cents apiece when redeemed this fashion.
Even cashing out your factors at a fee of 1 cent every would prevent 1000’s of factors over utilizing the present switch bonus.
Associated: Best Chase Ultimate Rewards sweet spots
Backside line
There are a number of Chase Ultimate Rewards partners which can be hardly ever switch choice — even with a wholesome switch bonus. IHG One Rewards is a kind of companions.
To determine if a switch bonus is a good suggestion, seek the advice of TPG’s monthly valuations and do the maths to see if the worth you are getting is above or under the worth of our common factors.
That stated, some switch bonuses are glorious offers. You’ll want to bookmark our transfer bonus page, which is up to date frequently. We’ll let you already know when a showstopper pops up.
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