How to redeem credit card travel rewards for cash back - Business Insider - Business Insider

How to redeem credit card travel rewards for cash back - Business Insider - Business Insider


How to redeem credit card travel rewards for cash back - Business Insider - Business Insider

Posted: 06 Apr 2020 09:24 AM PDT

This page includes information about the Discover it® Miles, which is currently not available on Business Insider and may be out of date.  

finance money bank banking banking credit card credit score investment payment american express gold platinum chase ink business preferrered visa cox
Crystal Cox/Business Insider

This article is brought to you by the Personal Finance Insider team. It has not been reviewed, approved, or otherwise endorsed by any of the issuers listed. Some of the offers you see on this page are from our partners, like Citi, but our coverage is always independent.

If you have a huge stash of travel rewards earned from credit cards like the Chase Sapphire Preferred card and the Platinum card from American Express, you might be wondering when you'll ever get to put those points to use. Travel isn't a possibility in the short term because of the novel coronavirus outbreak, and while you could use your points to speculatively book a trip for months in the future, no one could blame you if that's not top of mind right now. 

If you're looking to maximize your credit card rewards, now could be a great time to pivot to earning cash back. There are many great cash-back cards to choose from, including the Citi Double Cash card and the Blue Cash Preferred® Card from American Express, but you can even turn travel rewards points like Amex Membership Rewards and Chase Ultimate Rewards into money back.

Redeeming travel points for cash back isn't always the best value — in some cases, each point is worth less than 1 cent — but if putting money back in your account is the main goal, it's an option worth considering. 

Here's how turning travel points into cash back works with different credit card rewards programs.

We're focused here on the rewards and perks that come with each card. These cards won't be worth it if you're paying interest or late fees. When using a credit card, it's important to pay your balance in full each month, make payments on time, and only spend what you can afford to pay.

American Express Membership Rewards 

If you have the Amex Platinum card, the American Express® Gold Card, or another Amex card that earns Membership Rewards points, you can redeem your rewards for cash back, in the form of a statement credit toward your account balance.

To redeem Amex Membership Rewards for cash back, navigate to the Rewards section of your card account. The first tab on the page, Cover Your Card Charges, allows you to select purchases you want to cover with points.

Unfortunately, you'll only get 0.6 cents per point when you redeem Amex points for cash back — which means you'd come out ahead using a cash-back card that earns you 1% back on your purchases. But if you're short on cash, it's nice to have this option.

Bank of America

You can redeem points from cards like the Bank of America® Premium Rewards® credit card and the Bank of America® Travel Rewards credit card for cash back as a deposit in a Bank of America account, in a 529 college savings plan, or as a statement credit to your credit card account. For all three options, you'll get 1 cent per point.

To redeem Bank of America points for cash back, log into your account, then click on the "Rewards" tab. From there, click "Cash," and select how you want to get your money back.

Capital One

Capital One lets you redeem miles from the Capital One® Venture® Rewards Credit Card, the Capital One® Spark® Miles for Business, and other cards for cash back — but at a subpar rate of 0.5 cents per mile. You can also redeem Capital One miles toward statement credits to cover travel purchases on your account, and this gets you a better rate of 1 cent per mile. But this won't be useful if you're looking to cover non-travel expenses.

To redeem Capital One miles for cash back, log into your account, then navigate to the Rewards page. Select "Cash" under the redemption options, then decide how many miles you want to redeem for cash back. You can get the cash back as an account credit or as a check in the mail.

Chase

You can redeem Chase Ultimate Rewards points from the Chase Sapphire Preferred, Chase Sapphire Reserve, and Ink Business Preferred Credit Card for cash back at a rate of 1 cent per point. 

Log into your Chase account, click on Ultimate Rewards, and then click "Cash Back" from the list of options. You'll then be asked to choose how much cash back you'd like to redeem for, and Chase will show you how many points that will require.

Citi

If you have the Citi Premier℠ Card or the Citi Prestige® Card, you can redeem your ThankYou points for cash back — at a rate of 1 cent per point for the Prestige, and 0.5 cents per point for the Citi Premier.

Once you're logged into your Citi account, hover over "Rewards & Benefits" and select "ThankYou Rewards." Then, select "See All Ways to Redeem." From here, click "Cash & Charity." You have the option to redeem your Citi points for cash in the form of a check, in denominations of $50 or $100, or for statement credits.

Discover

With the Discover it® Miles, you can use rewards to cover travel purchases on your card statement, or to get cash back in your bank account. With either option, you'll get 1 cent per mile. 

To redeem Discover miles for cash, log into your account, select "Ways to Redeem," and then click "Miles as Cash."

Wells Fargo

You can redeem Go Far Rewards from Wells Fargo credit cards like the Wells Fargo Rewards Card for cash-back checks in the mail, or use your points to get money deposited in an eligible Wells Fargo account in increments of $25. 

To redeem for a statement credit, log into your Go Far Rewards account, and select "Use Your Rewards," then "Redeem to Account." If you have a Wells Fargo debit or ATM card, you can also withdraw rewards as cash. Each point is worth 1 cent.

Comments

Popular posts from this blog

Window for Small Businesses to Apply for PPP Funding Closes Saturday - Bay News 9

List of Easy Approval Net 30 Accounts for 2020 - Nav

This new business index offers a more accurate way to forecast recessions - MIT Sloan News