• Skip to primary navigation
  • Skip to main content
  • Skip to primary sidebar
  • Skip to footer

The Globetrotting Teacher

Experience the World Point by Point

  • Destinations
  • Miles and Points
    • Miles & Points Guides
    • Travel Hacking Basics
    • Student Course Log-In
  • Credit Cards
    • Travel Rewards Credit Cards
    • Airline Credit Cards
    • Hotel Credit Cards
    • Business Credit Cards
  • New York City
  • Travel Tips
    • Travel Resources
    • Travel Gear
  • About
    • Work With Us
    • Blogging Tools I Use

Updated on January 14, 2020 By Jackie Sills-Dellegrazie 2 Comments
This post contains affiliate links which earn a small commission at no extra cost to you. Please read my Disclosure and Privacy pages for more info. Additionally, The Globetrotting Teacher has partnered with CardRatings for our coverage of credit card products. The Globetrotting Teacher and CardRatings may receive a commission from card issuers.

dollar cash money

What are Miles and Points?

Disclosure: This post contains affiliate links that earn a small commission at no extra cost to you. The Globetrotting Teacher has also partnered with CardRatings for our coverage of credit card products. The Globetrotting Teacher and CardRatings may receive a commission from card issuers. Please read my Disclosure to learn more.

Updated on January 14, 2020

Miles and points are at the very core of travel hacking. Clearly, the goal is to earn miles and points and use them to redeem for award travel.

However, not all miles and points are equal. So, it’s important to understand the different types of miles and points and the value each can return.

What are Miles and Points
Save this post for later on your Pinterest Travel Hacking board!

What are miles and points?

Miles and points earned from travel rewards credit cards, airlines, and hotels are a form of currency in the same way the Dollar or Euro is. The difference is miles and points can be used to redeem for travel costs like flights, hotel nights, transportation, cruises, activities, and tours.

miles and points, cash back rewards

What are the different kinds of miles and points?

There are 3 different types of miles and points, transferable, branded, and cash back. Let’s look at each one individually to make sure you understand the differences between each type.

chase sapphire preferred miles and points

Transferable Points are earned with a bank credit card attached to a travel rewards program. Examples include credit cards like the Chase Sapphire Reserve or the American Express Platinum.

These points are flexible and can be transferred to multiple airline and hotel partners connected with the bank’s travel rewards program. Transferable points don’t expire as long as you have an active transferable points-earning credit card with that particular bank.

In addition, these points offer a degree of protection against negative airline and hotel award chart changes. If one particular transfer partner devalues their awards program, you still have the option to use your transferable points with a different transfer partner.

United Airplane miles and points

Brand-Specific Miles and Points are specific to a particular airline or hotel loyalty program. They’re earned from paid travel and by using a co-branded credit card like the Citi Hilton or the Chase Southwest Premier.

Examples of brand-specific miles and points are IHG points for Intercontinental and Holiday Inn Express stays or United miles for flights on United and its airline alliance partners.

This type of travel rewards currency does not change. American Airline miles are always American Airline miles. Hyatt points are always Hyatt points.

Airline alliances and partners can add tremendous value, though. For example, American Airlines miles can be used to redeem for flights with their Oneworld partners.

The downside is, if an airline or hotel rewards program devalues, so does your currency. In addition, inactive loyalty program accounts can expire after a set period of time. For this reason, it’s better to use these miles or points sooner rather than later.

Cash Back Travel Rewards miles and points

Cash Back Points are just that. The money you spend on a cashback credit card earns points that can be redeemed for a statement credit or cash awards. Cashback points have a set value of 1 cent per point. In this case, 50,000 points would give a $500 return value.

Cashback rewards are simple to use, removing the need to understand airline and hotel loyalty program rules and award charts.

Which type of miles and points offers the best value?

Transferable, Brand-Specific and Cash Back miles and points vary greatly depending on a range of factors from the strength of a bank’s travel transfer partners to loyalty program perks to your own unique travel goals.

Italy trip with miles and points

Here are 5 things to keep in mind as a travel hacking beginner.

  1. Successful travel hackers have a diverse portfolio with a combination of all 3 types of miles and points. But this takes time to build.
  2. Transferable points return an excellent value for international travelers, frequently much more than 1 cent per point as cashback points do.
  3. Brand-Specific and Transferable miles and points can be a powerful duo. For example, Chase Ultimate Rewards Points transfer to United. Paired with the co-branded United Explorer card, it’s possible to earn enough points for an aspirational redemption.
  4. Luxury travelers preferring to fly and stay in premium classes and hotels should focus on transferable and brand-specific currencies.
  5. Cashback rewards are best for expenses that cannot be covered by traditional airline or hotel loyalty programs, like car rentals and cruises.

As you get started with travel hacking, it’s important to know the different types of miles and points and how each one can help you reach your travel goals.

Which type of miles and points do you earn? How do you redeem them for award travel?

Like this post? Please share it on social media using the social media share buttons below!

Other Posts You're Sure to Love

  • Travel Hacking 101Travel Hacking 101
  • Which Travel Rewards Credit Cards to Look at Right Now (January 2021)Which Travel Rewards Credit Cards to Look at Right Now (January 2021)
  • 15 Mistakes You Don’t Want to Make as a Points and Miles Beginner15 Mistakes You Don’t Want to Make as a Points and Miles Beginner
  • United Basic Economy: How to Overcome It (and Even Benefit!)United Basic Economy: How to Overcome It (and Even Benefit!)
  • 9shares
  • Facebook0
  • Twitter0
  • Pinterest9
  • LinkedIn0
  • Reddit0
  • Flipboard

Filed Under: Miles and Points Tagged With: miles, points, travel hacking

Affiliate Disclosure

The Globetrotting Teacher is a participant in the Amazon Services LLC Associates Program. As an Amazon Associate I earn from qualifying purchases.

Additionally, The Globetrotting Teacher has partnered with CardRatings for our coverage of credit card products. The Globetrotting Teacher and CardRatings may receive a commission from card issuers.

Comments & responses below are not provided or commissioned by the bank advertiser. Responses have not been reviewed, approved or otherwise endorsed by the bank advertiser. It is not the bank advertiser’s responsibility to ensure all posts and/or questions are answered.

Reader Interactions

Comments

  1. Marry walker says

    September 25, 2020 at 6:33 am

    Amazing article. Thanks for sharing this informative blog!

    Reply
    • Jackie Sills-Dellegrazie says

      September 25, 2020 at 11:48 am

      Thanks so much for reading. 🙂

Leave a Reply Cancel reply

Your email address will not be published. Required fields are marked *

This site uses Akismet to reduce spam. Learn how your comment data is processed.

Primary Sidebar

About Me

Hi, I'm Jackie, the Globetrotting Teacher. Travel has been life-changing for me whether I'm traveling solo or with my favorite travel partner, Peter my husband! Learn more about my travels and how I use miles and points to travel around the globe. About Me

  • Facebook
  • Instagram
  • Pinterest
  • RSS
  • Twitter

TGT Holiday Deals!

12-must-have-gifts-sidebar

Search the Site

Get Started with Points and Miles!

12-must-have-gifts-sidebar

New Chase Freedom Flex!

Earn $200 after spending $500 in 3 months!
Earn 5% on groceries up to $12k in the 1st year, quarterly bonus categories (up to $1,500 each quarter), & for travel booked in the Chase Travel Portal
Earn 3% on drug stores & dining
Earn 1% on all other purchases

This is an excellent offer(!)
for anyone wanting to earn cashback and/or travel rewards points from their everyday spending!

Learn more about the
Freedom Flex!

Footer

Disclosure

As an Amazon Associate, The Globetrotting Teacher earns from qualifying purchases.

The Globetrotting Teacher has partnered with CardRatings for our coverage of credit card products. The Globetrotting Teacher and CardRatings may receive a commission from card issuers.

[Disclosure]

[Privacy Policy]

Copyright

All photos & content are copyrighted & belong to Jackie Sills-Dellegrazie at The Globetrotting Teacher unless otherwise cited and may not be reproduced or used elsewhere without permission. DMCA.com Protection Status
  • Facebook
  • Instagram
  • Twitter
  • Pinterest

Like every website with social media buttons, commenting, affiliates, and analytics embedded, The Globetrotting Teacher uses cookies. Please click ok to accept and/or visit my Privacy Policy to learn more. OK Privacy Policy
Privacy & Cookies Policy

Privacy Overview

This website uses cookies to improve your experience while you navigate through the website. Out of these cookies, the cookies that are categorized as necessary are stored on your browser as they are essential for the working of basic functionalities of the website. We also use third-party cookies that help us analyze and understand how you use this website. These cookies will be stored in your browser only with your consent. You also have the option to opt-out of these cookies. But opting out of some of these cookies may have an effect on your browsing experience.
Necessary
Always Enabled

Necessary cookies are absolutely essential for the website to function properly. This category only includes cookies that ensures basic functionalities and security features of the website. These cookies do not store any personal information.

Non-necessary

Any cookies that may not be particularly necessary for the website to function and is used specifically to collect user personal data via analytics, ads, other embedded contents are termed as non-necessary cookies. It is mandatory to procure user consent prior to running these cookies on your website.