Source: Fortune
Summary
Nick Ewen, editor-in-chief of The Points Guy, emphasizes the importance of diversifying credit card points to maximize their value. He compares it to an investor strategy, where putting all eggs in one basket can lead to losses. Ewen suggests starting with a flexible points currency, such as Chase Ultimate Rewards or Amex Membership Rewards, rather than a co-branded airline or hotel card. This allows for more flexibility and better redemption rates. He also advises against spreading points too thinly across multiple programs.
Our Reading
The numbers tell one story.
Nick Ewen’s advice on diversifying credit card points is a hedge against devaluations. Airline loyalty programs are now valued in the tens of billions of dollars, and changes to their pricing can have ripple effects on millions of point balances. Ewen recommends starting with a flexible points currency and avoiding co-branded cards. Richard Kerr, GM of Travel at Bilt, agrees that the co-branded landscape has become crowded, leading to decision fatigue for consumers. The antidote is to spread risk, know what you own, and don’t chase performance.
In a world where airline loyalty programs are worth more than the airlines themselves, diversification is key to maximizing point value.
Author: Evan Null
