Credit card points can be a lifesaver, but it’s important to ensure that you’re always getting value for money.
This means avoiding what personal finance expert and TikTok user Kaung Fi (@kaungfi) describes as a “rookie error.”
Indeed, in a TikTok that’s amassed 1.4 million views, Fi began with some crucial advice. “If you’re new to credit card points please do not use the travel portals,” he said. “Whether it’s through Chase, Amex, Capital One, or whoever.”
Why shouldn’t you use travel portals?
Using the hotel he’s staying in as an example, Fi explains that the cash rate for a night at this hotel is $217, which translates into 21,000 credit card points. Conversely, as he notes, booking through a travel portal such as Chase, Amex, or Capital One would cost 17,000 points. But you can do better than that.
“The danger of booking through a travel portal is it’s considered a third party,” he adds. “So something goes wrong, the hotel is going to say, ‘Tough luck. Go to who you book with. They’ll be the ones that help you out.’ And I’ve heard way too many horror stories about that happening for me to ever trust any travel portal.”
The best course of action, Fi explains, is to directly transfer credit card points to partner hotels. Transferring his points to a partner hotel, he said, would only cost 12,000 points.
“And of course, the best part is you are considered booking direct with the hotel, so if something goes wrong, they will help you,” he concluded. “If they have upgrades to give to you because of your loyalty, you will come first.”
Viewers weigh in
Commenters had mixed feelings over this life hack. Some commenters were grateful, with one claiming that they’re “spending four nights next to Central Park in Manhattan at a 4-star hotel in a few weeks with this hack.”
“The hotels I’m looking up actually cost MORE to use their points than paying or using credit card points,” another claimed.
While a third said they related to some of what Fi was saying. They wrote, “I’ve had that ‘tough luck’ situation when booking third party. NO BUENO.”
Still, on the wider internet, numerous financial advice sites like God Save the Points, Thrifty Traveler, and the Points Guy also cite the benefits of using point transfer partners for travel. So, at the very least, it’s definitely worth investigating.
@kaungfi The best way to use your credit card points on travel is to transfer them to partner programs. I show you an example of the cash rate vs. travel portal vs. transferring to a hotel partner. #pointsandmiles #creditcardtips @Hyatt Regency Cleveland ♬ original sound – K – Finance & Free Travel
Fi didn’t immediately respond to the Daily Dot’s request for comment via TikTok comment and email.
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