Many credit cards offer different types of rewards that you can earn by using them. Airline miles, hotel points, bank points, and straight cash back are the most common types of rewards that you can earn. But even if you’ve decided to focus on cash back credit cards, you might not want to ignore the other types of rewards credit cards. That’s because some travel credit cards are sort of “secret” cash back cards, and these travel cards can actually be some of the best cash back credit cards out there.
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Taking Advantage of “Secret” Cash Back
There are many types of credit cards that offer straight cash back on all purchases. The Citi Double Cash® Card card is one example, where you get 2% back on everything, no matter where you use it. But there are other credit cards that you might think are travel credit cards that can actually be used as cash back cards.
This is because when you earn bank points like Chase Ultimate Rewards or Citi ThankYou® Points, you can easily convert those bank points to cash. While many of these cards may be marketed as travel cards, they can definitely function as cash back credit cards as well. In fact, it’s possible to earn $500 to $750 or even more in the first 3 months using some of these secret cash back cards.
Here’s a look at a few of these travel cards that can actually be used as cash back cards:
Chase Sapphire Preferred
The Chase Sapphire Preferred® Card is currently offering a bonus of 60,000 Ultimate Rewards points after you spend $4,000 in the first 3 months of having the card. Chase markets this as $1,000 towards travel but you don’t HAVE to use those Ultimate Rewards towards travel. It is true that you get a 25% bonus if you use those points towards travel, but you can also just cash them out for $600 as a statement credit.
You’ll also earn:
- 5x (5% cash back) on travel purchased through Chase Travel℠
- 3x (3% cash back) on dining, including eligible delivery services, takeout and dining out.
- 3x (3% cash back) on online grocery purchases (excluding Target, Walmart and wholesale clubs).
- 3x (3% cash back) on select streaming services.
- 2x (2% cash back) on other travel purchases
- 1x (1% cash back) on all other purchases
It can get even better with Chase Pay Yourself Back, a feature that Chase introduced in 2020. As of January 2023, you can use points to wipe out purchases at select charities with your 25% bonus. The Sapphire Preferred has a $95 annual fee.
Citi Premier® Card
The Citi Premier® Card is another card that earns bank points that are nominally “travel” points but can also be used towards cash. The Citi Premier currently has a great signup bonus. Again, while you can use those ThankYou points towards travel either directly through the ThankYou travel portal or by transferring them to hotel and airline partners, you can also redeem them towards cash.
You’ll also earn:
- 3x (3% cash back) at restaurants
- 3x (3% cash back) at supermarkets
- 3x (3% cash back) at gas stations
- 3x (3% cash back) on air travel and hotels
- 1x (1% cash back) on everything else
Every 10,000 ThankYou points is worth $100 cash. Just like Chase Ultimate Rewards, you get a full 1 cent per point when redeeming for cash. You can get your cash as a statement credit or direct deposit. That is an awesome signup bonus!
Ink Business Preferred® Credit Card
The Ink Business Preferred® Credit Card is another card that earns Chase Ultimate Rewards points. Currently, you can get 100,000 Ultimate Rewards points after spending $8,000 in the first 3 months. While spending $8,000 might be a lot for some people, 100,000 Ultimate Rewards points can be cashed out for $1,000 as a statement credit or direct deposit. Like with the Sapphire Preferred, Ultimate Rewards points earned with the Ink Preferred are eligible for a 25% bonus if you use them towards travel through the Chase Travel portal.
For ongoing spending with the Ink Preferred, you’ll also earn 3x on the first $150,000 spent in combined purchases in the following categories each account anniversary year.
- Shipping purchases
- Advertising purchases made with social media sites and search engines
- Internet, cable and phone services
- Travel
It is important to know that the Chase Ink Preferred is a business credit card, which means that you’ll have to have a qualifying business to apply. However, if you sell things on eBay, have an etsy shop or do anything else for money, you may already have a business even if you don’t know it. Your business doesn’t need to make a profit, have employees or be officially registered anywhere in order to count as a business for purposes of opening a business credit card.
In Summary: How You Can Earn 15% Cash Back
Even if you are focusing on earning cash back for your credit card rewards, this should help illustrate how it can be a good idea not to ignore travel rewards cards. It can also show the power of signup bonuses for truly maximizing your rewards. While 2% is a good benchmark for cash back earnings on everyday spending, it’s not uncommon to earn 15% or even more while meeting the minimum spending requirements on a card.
On these offers, let’s first look at the Chase Sapphire Preferred. You’ll get 60,000 Ultimate Rewards ($600 in cash back) after spending $4,000 in the first three months of having the card. So while you’re making that $4,000, you’re getting a 15% return on that spending. With the big signup bonus with the Citi Premier, you’re also getting at least a 15% return. These are just two examples of the power of the CashFreely approach.
