Cash back VS Travel Rewards: How to Maximize Your Credit Card Points

Did you know that there are credit cards that are advertised as offering cash back, but you can actually use them as travel points? Yes, it is possible, and you can get a ton of value out of those points!

Why not just use the cash back and then put it towards your trip?

You can actually get a ton more value if you were to transfer your points and instead of using cash back, you use it for travel. In this post, I will show you how my family turned a $750 cash back bonus into $2,200 in free travel, but using it for travel instead.

Cash Back VS Travel Rewards- Which Saves More?

When you redeem points on your credit card for cash, typically, you are locking in a low value. This is usually 1 cent per point. Instead, if you choose to transfer those points to a travel reward program, your point value can stretch further.

Example:

Cash back option: Spend $6,000- Earn 75,000 points- Redeem for $750
Travel transfer option: Spend $6,000- Earn 75,000 points- Redeem for a hotel stay valued at over $2,000.

That is the power of travel rewards. So let’s break down how to get that value on cash back cards and turn them into travel rewards.

How To Turn Cash Back Cards into Travel Rewards

Turning cash back cards into travel points is not complicated, but it does take an extra step.

Step 1: Earn the bonus on the cash back card. (CHECK OUT ELEVATED OFFERS)

This card is advertised as a cash back card. The offer says if you spend $6,000 in 3 months, then you get $750 cash back or 75,000 points. When you earn this bonus, it does show up as points in your account. (CURRENTLY ELEVATED)

Step 2: Transfer points to a premium Chase travel card.

To unlock the ability to use those points for travel, you need to transfer the points from one card to another, which is done easily in your Chase app. Once you move the points to one of these cards, you can use those points in the Chase Travel Portal, whether it is booking through the portal or transferring those points to one of their airline or hotel partners. 4 travel credit cards allow you to use these points for travel with Chase.

TIP: If you don’t have one of these cards yet, don’t fret. If there is an elevated offer on a cash back card, I would still grab that elevated offer and get as many points as I can. Then next, you can open one of the premium cards listed above and then transfer your points over.

Step 3: Use points for hotels, airlines, or travel in the portal

Once your points are transferred to one of the cards listed above that has access to the Chase Travel Portal, you can book your award travel with points. Whether you decide to book directly in the Chase Travel Portal or transfer to one of the travel partners, you can use those points for travel. My personal favorite way to use these points is to transfer them to my World of Hyatt account to book my hotel resort stays.

The Best Chase Credit Cards for Travel Rewards

Cash Back Cards with No Annual Fees

These cards are great for stacking up more points and not having to pay another annual fee. Remember: The business cards will not add to your 5/24, but the personal cards will. I track my 5/24 status in my Travel Freely app.

Check Out Current Offers on This Page

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How I saved over $2,000 with Travel Points

Here is an example of how my family used the cash back bonus to get us travel awards with our points, saving us over $2,000.

I earned the bonus from the Chase Ink Business Cash credit card. My bonus was 75,000 points.
Transferred the points to my Chase Sapphire Preferred.
From there, I transferred my points to my World of Hyatt
I was able to use those points to book 3 nights at the Grand Hyatt Kauai

Now the same exact room on the same exact nights would cost me $828 a night. Meaning 3 nights would cost me $2,284!

Here you can see that when they say the card offer is 75,000 points with a value of $750, it can actually be much more when done this way!

Redemption Method	Value	Nights	Cash Price
Cash Back	$750	0
Hyatt Points	$2,484	3	$828 a night

This example turns 75,000 points into over $2,484 of SAVINGS! Cash back wouldn’t be able to get me a single night at this hotel.

Why Families Should Choose Travel Rewards Over Cash Back

Travel rewards stretch your points even farther, giving you more savings and allowing you to save more money.

Free Hotel Stays (You can book larger rooms or multiple rooms with big families)
BOGO flights with airline partners like Southwest
Lots of family-friendly hotel brands with Hyatt, Marriott, and IHG
Options to book in the Chase Travel Portal as well

How to Get Started with Points and Miles

If you are just getting started, don’t forget to grab my FREE beginner guide, where I walk you through the basic foundations of how to earn thousands of points to put towards nearly free travel. Our family has saved over $23,000 this year alone!

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FAQs: Cash Back vs Travel Rewards

Can you use cash back credit cards for travel?

Yes, with Chase cash back cards, you actually earn Ultimate Reward points. If you use the cash back option, those points turn into cash back. To use your cash back points for travel, you will need to transfer them to one of the Chase Travel Portal credit cards.

What Chase credit cards let you transfer points for travel?

There are four cards that allow you to access to the Chase Travel Portal and also give you access to transferring points to their travel partners. The credit cards that offer this ability are the Chase Sapphire Preferred, Chase Sapphire Reserve, Chase Sapphire Reserve Business, and the Ink Business Preferred.

Is It better to use cash back or travel rewards for family travel?

For families wanting to stretch those points and get more value using the points for travel rewards is going to be the better option. The cash back option is simple and easy to do but does limit the amount you are able to save. Using those points through the Chase Travel Portal or transferring points to one of their partners is going to give you better value and more money savings for your points.

How do I keep all my business cards and personal cards organized?

Use the free app by Travel Freely to keep all your cards organized in one place. User can make a profile for their personal cards and business cards. You can easily add your player 2 as well and add their card profile making it easy to stay organized. Download your free Travel Freely app.