When starting your journey with travel credit cards, it’s common to gravitate toward co-branded cards from your favorite airline or hotel loyalty programs—think American Airlines, Delta, Hilton, or Marriott. While these cards can be valuable, especially if you’re loyal to these brands, you may miss out on a more powerful strategy. To truly optimize your points-earning potential and travel experiences, it’s essential to consider flexible point programs, such as our favorite personal travel card, premium travel card, or top business cards.
What Are Co-branded Cards vs. Flexible Points Cards?
Co-branded credit cards are those issued in partnership with a specific airline or hotel brand. The points you earn from these cards are tied directly to that brand’s loyalty program. While this can be great if you’re very loyal to one brand, the value of your points is limited to that brand’s redemption options.
On the other hand, flexible points cards, issued by major banks like the Blue Bank (due to compliance, earn points that can be transferred to multiple travel partners, including airlines and hotels. These points offer far more versatility, allowing you to choose the best transfer partner based on your travel needs. For example, our favorite personal travel card will enable you to transfer points to partners like World of Hyatt, United Airlines, Virgin Atlantic, and more—offering far more value than a co-branded card limited to one brand.
(Compliance Disclaimer: Throughout this blog, I refer to certain issuers, like “Blue Bank,” due to compliance requirements. Specific bank and card names have been omitted to ensure adherence to the latest guidelines.)
I recently used 89,000 of our favorite flexible points to cover a Central Sea Terrace (balcony) cabin on the Virgin Voyages Celebration Cruise. The cash price would have been over $4,500, making the redemption worth over 4.6 cents per point. In contrast, 89,000 Marriott Bonvoy points might only cover one to two nights at a Marriott property, worth around $534—showing how much more value you can unlock with flexible points compared to a co-branded card limited to one brand’s loyalty program.
Why Start with Flexible Points Cards?
One of the biggest reasons to start with flexible points cards is the 5/24 rule. This is a well-known policy from the Blue Bank, which states that if you’ve opened more than five personal credit cards across any issuer in the last 24 months, you won’t be approved for most of their cards. Starting with flexible points cards early ensures you’re building a foundation that will help you maximize future rewards.
Beyond that, flexibility is key. For instance, if you hold a co-branded Marriott card, your points can only be used for Marriott Bonvoy stays. While Marriott does have transfer partners, the transfer ratios are typically poor—often 3:1, meaning for every 3 Marriott points you transfer, you get just 1 airline mile. Marriott Bonvoy points themselves are valued at around 0.6 to 0.8 cents per point, so transfers to airline partners rarely make sense due to the low value.
On the other hand, with flexible points from some of our favorite travel programs, you can transfer them to Marriott Bonvoy at a 1:1 ratio, but you also have the flexibility to transfer to over 10 other partners, including World of Hyatt, United Airlines, and Virgin Atlantic, Delta Airlines, Hilton, etc. These programs often provide much better value per point, making flexible points significantly more valuable. For instance, points from the Blue Bank’s flexible program are typically valued around 1.5 to 2 cents per point—giving you a much higher return on your travel redemptions.
All Points Are Not Created Equal
It’s important to note that not all points are created equal. Each hotel and airline program values points differently, affecting the value of your redemptions. For instance, Hilton points are often worth less than Hyatt points. I recently used 5,000 Hyatt points to cover a $170 room in Dallas for a friend’s wedding, while similar hotels in the area, particularly Hilton properties, would have required around 35,000 points for the same level of stay. Understanding the value of points within each program can make a huge difference in your overall travel strategy.
When Should I Consider a Co-branded Card?
Co-branded cards can still be beneficial, especially for frequent travelers who are loyal to one brand. If you consistently fly with one airline or stay at one hotel chain, the perks from co-branded cards can be substantial. Think of complimentary elite status, free checked bags, room upgrades, and other brand-specific perks.
For example, a frequent traveler with Delta or a regular guest at Hilton properties might find value in earning points directly tied to those programs. Co-branded cards also often come with unique perks like annual free night certificates, companion passes, or airline fee credits that flexible points cards might not offer.
Ultimately, it comes down to your travel style. If you value flexibility and the ability to transfer points to multiple partners, start with flexible points cards. However, adding a co-branded card to your wallet could make sense if you’re a brand loyalist who travels frequently with a specific airline or stays exclusively with a particular hotel chain.
Conclusion
Both co-branded and flexible points cards have their place in your travel rewards strategy. Starting with flexible points cards can help you build a more versatile points portfolio, giving you access to a wider range of travel options. Once you’ve secured those cards, consider adding co-branded cards that align with your travel habits to take advantage of brand-specific perks. By balancing and understanding the pros and cons of both, you can maximize your rewards and enjoy more travel for less.
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