How to Turn Cashback Into Ultimate Reward Points

The debate between cashback and credit card points is one that will go on until the end of time. There is one fact and benefit that is indisputable though, and that is if you want to travel, or use your points for traveling, then you are much better earning points and miles. With a Chase setup, whether a Trifecta or Quadfecta, it’s possible to turn cashback earned from those cards into points. But why would you do that, and most importantly… how?

Why Would You Want to Turn Cashback Into Ultimate Reward Points

As we briefly touched on, turning cashback into points has its advantage when you redeem the points for traveling. When you use a strictly cashback setup, you know exactly what you’re getting, (2%, 5%, etc). The problem for cashback, is that it ends up being a small amount, and there’s much more potential for the points. If we transfer that same cashback earned into points, then we could get much more value. 

That’s because we can value the points at 2 cents per point. This means that the cashback earned (2%, 5%, etc) would actually be worth twice as much if we redeemed them as points. At a minimum, if we redeemed the points through Chase’s travel portal, we’d get a 1.5x multiplier for using the Sapphire Reserve, and a 1.25x multiplier if using the Sapphire Preferred or Ink Business Preferred. Still, that is still worth more than the standard 1x.

How to Turn Cashback Into Ultimate Reward Points

With Chase’s setup, you earn cashback using the Freedom or Freedom Unlimited cards. If we had earned $50.00 in cashback, that would technically be 5,000 points. If we have another Ultimate Reward earning card, such as the Sapphire Reserve, Sapphire Preferred, or Ink Business Preferred, we can link the accounts. Once linked, we can then go ahead and merge the points. 

Transfer the points from the Freedom/Freedom Unlimited to the Ultimate Reward point earning card. In our example, that $50.00 would show up as 5,000 points on the other card. 

Final Thoughts

Being able to transfer the cashback earned from the Freedom cards can really accelerating your point earning. While the Sapphire Reserve earns 3 points back at some nice places, it wouldn’t be as easy to accumulate points unless you also used the Freedom’s 5% earning and extra 1.5% earning potential of the Freedom Unlimited.

This entire premise is what makes the Chase Trifecta/Quadfecta such a lucrative credit card setup. Just be sure to get some nice value for those points! Otherwise you may have wasted the points away.

What was the biggest point transfer you’ve done? Have you been able to travel because of it? Let us know down in the comment section down below. 

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