Why the only thing better than transferable points is INSTANTLY transferable points

One of the key ideas I push on Head for Points is that transferable, or convertible, points are better than non-transferable points.

The best way to explain this is via American Express Membership Rewards points, earned from Amex Gold, Amex Platinum and the Amex Rewards Credit Card.

You can transfer 1 American Express Membership Rewards point into 1 Avios.  You might think, therefore, that 1 Amex point is worth the same as 1 Avios.  IT ISN’T.

1 American Express Membership Rewards points is worth MORE than 1 Avios.  This is because, as well as converting to 1 Avios, it will also convert into 1 Virgin Point, 1 Etihad mile, 1 Flying Blue mile, 2 Hilton points, 1.5 Marriott points, 3 Radisson points, 0.5p of shopping vouchers, 0.45p of statement credit etc etc.

As well as giving you more choice, transferable points are also defensive.  Even if you intend to convert your Amex points to Avios, it makes sense to keep them with Amex until the last minute.  If you move them to Avios and BA moves the goal posts in terms of points needed or availability then you’re stuffed.

Other convertible points currencies include:

• HSBC Premier credit card points (four airline partners plus shopping vouchers)
• Tesco Clubcard points (Virgin Points plus many non-travel partners)
• Heathrow Rewards (various airline partners as well as shopping discounts)

You could, arguably, include Marriott Bonvoy points in this list too.  It is the only hotel scheme where you get genuine good value if you convert your points to airline miles.  This article looks at the 41 Marriott Bonvoy airline partners.

I do NOT include Nectar on this list, because transfers between Nectar and Avios are 2-way.  It doesn’t matter where your points sit, because you can move them in either direction.

So …. convertible points are worth more than non-convertible points.

That is stage one.  There is a second stage however ….. INSTANTLY convertible points are worth more than all other convertible points.

One – sensible – argument against not converting your points until you need them is that the transfer takes time.  Even transfers which are quick, such as American Express transfers to Avios, still require you to wait overnight.  It is possible that the redemption seat you wanted may have gone when they arrive.

Some American Express Membership Rewards partners have INSTANT transfers, however.  The only caveat is that you need to have already linked your accounts.

This is your dream result.  You can look for the seat you want and, when you find it, move the points and immediately book without any risk of losing the seat.

There are no HSBC Premier, Tesco Clubcard or Heathrow Rewards miles partners which allow instant transfers.  This is a unique Amex feature.

There is one other UK Avios partner which allows instant transfers – Capital On Tap, via their Business Rewards Visa card for SMEs.  You can learn more about Capital On Tap’s Avios earning credit card here.  There is a bonus worth 10,500 Avios for signing up.

Which American Express partners offer INSTANT transfers?

As far as I know, the list of Membership Rewards partners which transfer instantly is:

• Delta SkyMiles
• Emirates Skywards
• Virgin Atlantic Flying Club
• Marriott Bonvoy

The most common reason for me to take advantage of instant transfers is when some new VIP packages for Arsenal appear for redemption on the Emirates Skywards website.  I accept that this is not for everyone, however.

Conclusion

Transferable points, such as American Express Membership Rewards and HSBC Premier points, are more valuable than non-transferable points such as Avios.

The most valuable transferable points of all are those that transfer instantly.

Want to earn more points from credit cards? – December 2021 update

If you are looking to apply for a new credit or charge card, here are our November 2021 recommendations based on the current sign-up bonus. 

You can see our full directory of all UK cards which earn airline or hotel points here. Here are the top current deals:

British Airways American Express

5,000 Avios for signing up, no annual fee and an Economy 2-4-1 voucher for spending ….. Read our full review

British Airways American Express Premium Plus

25,000 Avios and the UK’s most valuable credit card perk – the 2-4-1 companion voucher Read our full review

American Express Preferred Rewards Gold

Your best beginner’s card – 20,000 points, FREE for a year & two airport lounge passes Read our full review

The Platinum Card from American Express

30,000 points and an unbeatable set of travel benefits – for a fee Read our full review

Earning miles and points from small business cards

If you are a sole trader or run a small company, you may also want to check out these offers.

American Express Business Gold

20,000 points sign-up bonus and free for a year Read our full review

American Express Business Platinum

40,000 points sign-up bonus and a long list of travel benefits Read our full review

British Airways Accelerating Business American Express

30,000 Avios sign-up bonus – plus annual bonuses of up to 30,000 Avios Read our full review

Capital On Tap Business Rewards Visa

The most generous Avios Visa or Mastercard for a limited company Read our full review

For a non-American Express option, we also recommend the Barclaycard Select Cashback card for sole traders and small businesses. It is FREE and you receive 1% cashback on your spending:

Barclaycard Select Cashback Credit Card

1% cashback and no annual fee Read our full review