Let’s say you only have the Chase Freedom Unlimited and Citi Double Cash or Wells Fargo Active Cash.
And let’s say you only take a trip once a year, but you don’t want to feel pressured to travel every year.
Is it worth putting all your spending on the 1.5% card, knowing that if you transfer your points to Hyatt or other partners, you might end up with 3% or more back for your one-off trip? Or is it better to just use the 2% card so you don’t feel forced into trips or hotel stays you might not take?
If you don’t want to feel pressured to travel every year, honestly it sounds like you don’t need a travel card at all. Just go for a 2% cash back card.
70,000 points can get you a one-way business class ticket to Europe that would cost $5,000, but that doesn’t mean the points are worth 7 cents each because it doesn’t apply to smaller amounts. You can’t exchange 100 points for $7.
If you value the time spent keeping up with loyalty program rules and award searches, you can really only come out ahead if you earn multiple six figures of points each year.
@MarkLee
Thanks for this insight! I was trying to figure this out when someone said points with transfer partners have the highest cash value, but that didn’t seem right. Your point helps clarify this.
@MarkLee
I’m new to the points game, but I hear people talk about needing 60-70K points for business class to Europe and Japan. Where do you find those cheap flights? I see prices for economy at that level.
Airlines want to fill empty seats, so they offer deals to loyalty program members. Flights that are cheap with points tend to be on routes that others may not want to pay for.
You need to be flexible with your destination and look for deals to maximize your points.
@MarkLee
This is really interesting! I guess you can’t be picky about routes or destinations for those good redemptions. My company books my travel, but if I could get business or first class, I wouldn’t mind using my points instead.
You can usually get value from any of these systems. I’d stick with a 2% card unless you need more Chase points for something specific. The CFU isn’t a great earner, but most catch-all cards aren’t unless you have a lot of spending.
@Westin
Am I the only one who sees decent value in CFU? To me, it’s effectively 2.25% catch-all if you’re getting 1.5x points on spending and then transferring to CSR with a 1.5 CPP floor.
Edit: I guess the original post suggests they don’t want a higher annual fee travel card, so this might not apply.
All these cards require a travel card from their banks to earn travel points. I assume you’re talking about Chase Sapphire Preferred, Citi Strata Premier, and Wells Fargo Autograph.
I’d rank them: Double Cash > Active Cash > CFU.
Citi has more transfer partners than Wells Fargo, so Citi wins unless you want a no annual fee option. Wells Fargo has the best no fee travel setup.
Chase has the best transfer partners, but I don’t think that makes up for the points difference. If you’re a Hyatt loyalist, transferring points to Hyatt is great, but it’s not the only hotel I use, nor the only way I spend points. Citi and Wells Fargo have nice options too, and Citi is strong with international airlines.
Check out the credit card transfer matrix below, as it depends on what you want to do with the points.
For instance, Choice Hotels transfer 1:2 from Citi and Wells Fargo but only 1:1 from Amex and Capital One. Amex points are often considered the most valuable, but in this case, Amex points are worth half of Citi’s or Wells Fargo’s while Chase doesn’t transfer there.
I value UR points at 2 cents each because it’s easy to get that with Hyatt. So I consider CFU at least 3%. I’m currently saving up for a Hyatt trip in Hawaii.
Ellington said:
I value UR points at 2 cents each because it’s easy to get that with Hyatt. So I consider CFU at least 3%. I’m currently saving up for a Hyatt trip in Hawaii.
Aren’t Hyatt properties usually a bit pricier than others? I’ve heard that enough on these forums, though I personally don’t know. This could mean that while you get a good redemption value, it might not be a good value overall since you’re paying more for something cheaper elsewhere.
@Parrish
I’ve only stayed at one in Salt Lake City, and I found it comparable to other hotels in the area. For the cash price I was effectively paying ($80 / 8,000 points), it was well worth it.
There will be times when the travel cost exceeds what you’re willing to pay in cash. In those cases, a travel card with a new cardmember bonus is a good idea. Since you only travel once a year, you could use your 2% cash back card for everyday purchases. Then, each year before your trip, open a travel card, put $4,000 of your spending on it to earn the new cardmember bonus, and use those bonus points for travel. After a year, you could close the travel card and repeat the process with a different travel card before your next trip.