Many travelers balk at or even look down on the idea of redeeming points and miles for just 1 cent apiece. Not us, though.
A big reason we're so bullish on Capital One miles – well … there are a lot of reasons, really – is because of how easy they are to use: Charge any travel expense to your Capital One card, wait a day or two, then go back and erase it with your miles. Every Capital One mile gets you 1 cent apiece toward travel.
But I'll do you one better: You can also redeem Chase Ultimate Rewards points at a rate of 1 cent each … for anything.
That means the limited-time offer of 100,000 points after spending $5,000 in the first three months on the *csp* isn't just 100,000 airline miles or hotel points, it's $1,000 in real money you can use for anything – not just travel. Groceries, gas, tuition, medical bills … you name it – with the ability to easily redeem Ultimate Rewards points as a statement credit or transfer to an eligible Chase bank account at 1 cent each, the sky is the limit for what you can do with this big bonus.
While you can (and perhaps should) get more value out of your Chase points by transferring them to airline or hotel partners or even booking a Points Boost redemption, more flexibility is invaluable. Sometimes, life happens.
If you could use an extra $1,000 in your life (who couldn't?), read on to see why this option is simply too good to ignore.
Learn more about the *csp*
A Can't-Miss, 100,000-Point Welcome Offer
Before we get into the nitty-gritty of using Chase points for pretty much anything, here's why this is on my mind.
Friends and family often ask me which credit card is best. That's a loaded question: It depends on your goals and spending patterns – but as the resident “credit-card guy” among my family and friends, I've gotten pretty good at making tailored recommendations.
But with the Sapphire Preferred's current bonus offer, nine times out of ten, my answer is the same regardless of what matters most to them. This 100,000-point offer is simply too good to pass up. For reference, this is the best offer we've ever seen on the Sapphire Preferred Card and only the third time Chase has gone this high with the bonus. Add in the card's recent enhancements while retaining its $95 annual fee, and there's never been a better time to add it to your wallet.
Even if you don't care about travel (well, you might be reading the wrong site…), this offer is worth $1,000 in cold, hard cash. That's enough to cover 10-plus years of the card's $95 annual fee, giving even the most reluctant traveler plenty of time to come around and figure out how to get outsized value from those points. And if, after a couple of years, you decide it's just not for you, you can always downgrade to a no-annual-fee card and spend the bonus however you like.
That kind of flexibility is notable because you can't cash out traditional airline miles or hotel points. Even with transferable Amex or Citi points, you're getting far less in value if you opt for cash. This is really only possible with Chase (and a couple of other banks) … and even then, you might need multiple cards to pull it off.
What's Possible With Chase's ‘Purchase Eraser'?
I need to be clear about something: Chase doesn't actually use the term “purchase eraser” for these kinds of redemptions. This is a term Capital One's marketing team used years ago for the ability to cover travel purchases with miles. But with Chase points, your options are even better, so it just seems fitting to dub this the “ultimate purchase eraser.”
Can you get better value out of your Ultimate Rewards by redeeming them for a business class flight or fancy Hyatt hotel stay? Absolutely.
But not every traveler – even avid ones – care about those kinds of redemptions … and some people don't care about travel at all. Having the flexibility to turn 100,000 Chase points into $1,000 of cash money is just part of what makes this bonus offer (and card) the perfect fit for practically everyone.
So what's possible?
A Big Road Trip
Let's start with travel … but not the kind of trip that points and miles can typically help with. I'm talking about a road trip, baby.
One of the biggest expenses for any road trip is gas – especially right now. While most major gas stations have their own loyalty programs these days, there's no easier way to offset that big expense than with a big stash of Chase points. Spend $100 to fill up your tank? You can easily redeem 10,000 Chase points for a statement credit and cover the charge in full.
Or how about food? We've all got to eat … and on a long road trip, that typically means dining out. Whether it's your morning caffeine bump at a local (or not-so-local) coffee shop, drive-thru fast food, or a nice sit-down dinner when you settle in for the night, you can use Chase points at a flat 1 cent per point to cover all those charges. Heck, you can even redeem Ultimate Rewards for snacks at the grocery store before you hit the road.
Better yet, the *csp* earns 3x points on gas (and EV charging), dining, and online grocery orders (excluding Target, Walmart, and wholesale clubs), so you'll earn bonus points on your purchases and then use them to lower your out-of-pocket cost.
Finally, you're going to need a place to stay while you're out on the open road. While Chase partners with not one, but four different hotel chains that you can transfer your points to and book directly (often for even greater value), hotels aren't for everyone. If you opt to rent a campsite or book a vacation rental through Airbnb or Vrbo, most points and miles are useless for these type of stays. But not Chase points …
Just like redeeming them for gas, dining, or groceries, each point is worth 1 cent as a statement credit. Book a $250 Airbnb? 25,000 Chase points are enough to cover the charge.
If flexibility is what you're after, nothing beats Chase points … and this might just be the perfect (travel) example of what's possible with a big stash of them.
Read more: 5 Ways to Save on Your Road Trip This Summer
Anything Else … Literally
I've said it before and I'll say it again: Travel isn't for everyone … but this travel card should be.
With Chase's “purchase eraser” (again, my words … not theirs), you can use Chase points to cover whatever big expense comes at you. Maybe you just got hit with an unexpected medical bill – you can use Chase points for that.
Heading off to college? Charge your books (do they even make you buy books anymore?) or tuition to your card and redeem a stash of Chase points to help lower the cost.
Or maybe, just treat your self to something nice. If you've been eyeing a new iPhone, designer handbag … whatever … you can put the charge on your card and then redeem points as a statement credit at 1 cent each. The possibilities are practically endless.
Invest Your Bonus
I intentionally saved this example for last because it's not really a “purchase eraser” and, no doubt, requires a little outside-the-box thinking. Seriously, I can already see some of your eyes glazing over … but stick with me here.
Say you take advantage of the Sapphire Preferred's current 100,000-point bonus today and cash those points out by redeeming them to an eligible Chase checking or savings account. If you turned around and invested that $1,000 in a low-cost index fund to save for retirement, you'd be looking at a theoretical bonus of nearly $20,000 … 30 years from now.
Now, that's obviously playing the long game, and that's putting it mildly.
I don't expect most people (if anyone) would jump at the chance to open the *csp* today for a bonus that could be worth $20,000 decades from now. But the broader point is that with Chase, it's possible – something that can't be said for those earning Delta SkyMiles or Marriott Bonvoy points, among others.
Before my fellow finance nerds come at me with pitchforks, I need to acknowledge that I made a few assumptions here to simplify this example. Yes, even low-cost index funds have fees. Yes, the S&P 500's historical 10% rate of return doesn't guarantee future performance. And of course, there are tax implications with an investment like this.
I'm not a financial advisor – and I'm certainly not your financial advisor – so take all of this with a grain of salt, but it is a fun (kind of?) way to look at just how valuable Chase points and this big bonus can be.
Covering Charges With Chase Points
OK, now that we've covered some of the things you can do with Chase points, how does it actually work in practice?
When logged into your Chase account, click on your Ultimate Rewards balance to see the full list of redemption options. Up at the top, you'll see “Convert to cash” – select that, and you'll be given the choice to use Chase's (more limited) “Pay Yourself Back®” feature or the more general “Cash back” option. Cash back is what you're after here.
Assuming you've got an outstanding balance of $1,000 on your card, you can redeem 100,000 Chase points to cover it in full. The nice thing is you can choose exactly how many points you want to redeem like this so if you're thinking about saving a few for a rainy day and don't mind paying a bit of the bill, you have the ability to fine-tune exactly how many points you redeem for a credit.
If you have (or are willing to open) a Chase bank account, you can instead opt to have those points transferred to your account and then withdraw them … literally, for cold hard cash.
When redeeming for a statement credit, it might take a couple of days to be fully processed and for your balance to update to reflect a “cash back” redemption.
Bottom Line
As much as it pains me to admit it, Chase points aren't just good for travel. Redeemed at 1 cent each for cash back, they're as good as money! This means the Sapphire Preferred's current 100,000-point bonus is really a $1,000 check … with your name on it.
Gas, groceries, tuition, an Airbnb, whatever — it doesn't matter if you never set foot on a plane. With an offer this good only coming around for the third time ever, and enhancements that make the card even stronger, this is the rare bonus that's right for everyone.
Learn more about the *csp*
