How I got 21% back towards travel (Really)

I signed up for the Chase Sapphire Preferred (referral link) card this past year to take advantage of the 50,000-point sign-up bonus, plus an additional 5,000 for adding an authorized user ($1155 at 2.1 cents per point !). It’s a good card that I use on a daily basis for most purchases, and it gives you 2x Chase Ultimate Rewards points on dining and travel, plus a host of other benefits, like no foreign transaction fees, rental car damage waiver and extended warranty protection, all of which I’ve used successfully. It has a $95 annual fee which is waived the first year.

Meanwhile, my old Amtrak Guest Rewards MasterCard was discontinued and converted into a Chase Freedom card, which is free. This card offers 5x point bonuses on rotating quarterly categories and 15,000 points ($150) for signing up. Currently (Q1 2016) the bonus category is local travel, including subways and taxis. Last quarter (Q4 2015) it was 10x (double the usual) on Amazon and Zappos, which was perfect for the Christmas season.

chase_bonus.png
Chase Freedom bonus categories for 2016 (Source: chase.com)

These both being Chase cards, they accrue Chase Ultimate Rewards points. Points can be combined between accounts and can even be pooled between you and your spouse. Now here’s the good part:

While the Freedom card only lets you redeem points for cash, the Sapphire card allows redemption at 1.25 cents for travel (cash value through Ultimate Rewards portal), as well as a 1:1 transfer to United Airlines (valued at 1.5 cents), British Airways, Singapore Airlines, and more. Having the Sapphire card lets you in on the benefits for all your Chase Ultimate Rewards cards (Freedom, Ink, Sapphire, etc.)

Thus with the 10x points earned during the Christmas season from Amazon mentioned earlier, each dollar spent gave us 21 cents (21%) back towards redemptions via Chase Sapphire and 15 cents (15%) on United Airlines in particular.

We’ll definitely be planning some flights this year. Happy travels!

Leave a Reply