Here's how to avoid my embarrassing rookie Chase Sapphire Preferred travel redemption mistake (2024)

As a credit card and personal finance writer, I’m a big fan of using rewards credit cards. But my knowledge took time to build, and my understanding has evolved over the years.

I first started using travel rewards credit cards in 2015, and at that time, I was still learning the ins and outs of credit card reward programs. I’ve made my fair share of mistakes while learning. Let me share one redemption mistake I made so you can avoid my error.

Different redemptions are worth different amounts

The Chase Sapphire Preferred® Card is popular among frequent travelers — and for good reason. It has an affordable $95 annual fee and earns plentiful rewards in bonus categories such as dining and travel, while also rewarding you nicely for other everyday spending.

Is the Chase Sapphire Preferred’s annual fee worth it? Here’s how to make the most out of that $95 price tag

Another big benefit is the flexibility of Chase Ultimate Rewards®. You can redeem them in many ways, including statement credits, travel bookings through the Chase Travel℠ portal and transfers to partner airline and hotel loyalty programs.

The value you get from your rewards varies depending on the redemption method you choose, which is why it’s best to consider how you can maximize your rewards before you redeem them. I didn’t do this many years ago, and it’s not a mistake I’d repeat.

I missed out on hundreds of dollars worth of value from my rewards

Once I collected a sizable stash of Chase Ultimate Rewards points (a little over 85,000), I chose the most straightforward redemption option: a statement credit to my credit card account. I cringe thinking about it now — you’ll soon understand why.

A statement credit redemption is similar to getting cash back, but the earnings are applied to your credit card statement, reducing the amount you owe on your bill. That wasn’t the best use of my rewards because it didn’t offer maximum value.

When you redeem your points for statement credit to the Sapphire Preferred, each point is worth one cent. When redeeming 85,000 points, I received $850 as a statement credit. At the time, it felt like a win because it helped offset previous travel purchases I had made with my card.

That’s not a terrible redemption, but it’s not the best — especially with this travel rewards credit card. I could have stretched my points further if I had used them differently. I’ll share two examples with far better value so you can avoid my mistake.

The card gives a 25% boost when booking through the Chase Travel portal

A notable benefit of the Sapphire Preferred Card is you can get 25% more value from your points when booking travel through the Chase Travel portal. This means each point is worth 1.25 cents when used this way. It also means my 85,000 points could have been worth $1,062.50 in travel booked through the issuer, an additional $212.50 in value.

You can book hotels, flights, and rental cars through Chase Travel. The site works similarly to other travel booking websites and apps. In addition to being shown the cost in cash, you’ll see how many points each booking would require if you want to pay with rewards.

Travel partner bookings can be worth even more

Chase has multiple airline and hotel transfer loyalty partners, which means Sapphire Preferred Card users can transfer their points to one of Chase’s travel partners to book flights and hotel stays. This can provide outsized value compared to other redemption methods.

Here’s an example. To fly from Seattle to Singapore using my points to book an award flight I could transfer my points to Singapore Airlines’ frequent flyer program, KrisFlyer.

Here is an example of an option I could book this way in December 2024.

When you book award flights, you’re still responsible for paying taxes and fees. This round trip itinerary would cost 84,000 miles (or 84,000 Chase Ultimate Rewards as Chase transfers to airline miles at a 1:1 ratio), plus $71.80 in taxes and fees.

I looked up flights to determine the cost of this itinerary without miles. I chose the same flights and the cheapest available economy tickets. The cash price for the same trip was $1,795.70.

Considering I’d need to pay $71.80 to cover the taxes and fees for the above award flight ticket, I’d value the award redemption at $1,723.90 at a value of roughly 2 cents per point.

That’s much better than redeeming 85,000 Chase points for an $850 statement credit or even booking travel worth $1,062.50 through Chase Travel. I’d get more than double the value.

You can see why it pays to carefully review all options before redeeming your rewards.

Look for ways to maximize your credit card rewards

For some, redeeming rewards earned from their Sapphire Preferred Card for statement credit may be the best option. You should always make a redemption choice that suits your needs and goals.

But if you’re open to other redemptions, consider how to maximize the value of your rewards. Strategizing can allow you to stretch your points further. You worked hard to earn your Chase points, so taking extra time to determine the best way to redeem your Chase points can add additional value.

Some of the best travel rewards cards require solid credit. Here’s what you need to know about what credit score is needed for the Chase Sapphire Preferred