Description: The article is intended to talk about the Chase Sapphire Preferred Reserve card which is good to consider. The author will show us details about travel rewards, different benefits and the negative parts of credit cards for us to make proper decisions.
Five hundred dollars if you do a cash out five hundred dollar value, once you hit that threshold, you get value out of that, up to about what five years of value, because five hundred five hundred bucks, so that’s not the worst Redemption to cash out.
As we are shown, these are the portals, this is the cash value, let’s move on down, the travel purchases, this is very important and this is one thing that confused me, at first I didn’t know what to times man, it’s not always easily explained.
Let me explain to you, if I’m spending on travel, if I’m spending on airlines from spent on hotels, taxis, trains, I’m getting two points for every dollar, if I spend $500, I’m getting a thousand points ,so that’s the way you need to look at that as far as restaurants.
It’s the same thing for every dollar, I get two points, so if I go for the whole trip, I’m out, I spend a total of five hundred dollars at restaurants, I will get a thousand points now, so if I go to the grocery store and I buy peanut butter, I’m only getting one to one, so if I spend a dollar, I’m getting a dollar, I’m getting a point, so that’s how you break down the points.
You need to think in a long term, so over a year’s time, how much money have you spent? How many points do you get as far as that? It’s concerning you can look at it this way, this is the easiest breakdown that I tell people.
When it comes to your 50,000 points, people think of how much value it is, fifty thousand points is equivalent to two round-trip tickets, anywhere in the US and that not including Hawaii, but anywhere else in the US mainland.
You’re getting two round-trip tickets, generally about twenty five thousand points as vertical costs for you to fly from Los Angeles to New York, so that’s the value there, so you can get two round-trip tickets, if you look at a ticket from LAX to New York, if you get a good deal, you will get it for around five six hundred dollars.
But for the most part, that’s where it will be, so five six hundred dollars, I’m only paying, I’m only using in point value, I’m only using two hundred and fifty dollars between twenty five thousand points, so you can see how you can benefit from using these travel rewards cards.
We are down to the foreign transaction fees, there are no foreign transaction fees, so if I’m a different country, I’m using my credit card, they’re not going to charge me extra fees for using it outside of the US the merchants, they show you how many merchants we were looking at here.
I will go over these two credit cards, I won’t do the comparison, but that’s what they’re showing there as far as the breakdown of those, so you also have the transfer points, this is very important as well.
When you have transfer partners in with this credit card, it’s all one to one, so if I chance for 10,000 points to United, I’m getting 1010 point value at United now, there are different credit cards and you have to be careful about this.
For some credit cards, I’ve transferred points, let’s say a chance for 10,000 points to Virgin America one Virgin America was when they didn’t have the merger and I don’t know I haven’t checked with them lately.
But you didn’t get the full value, so if I chanced for 10000 points, I get five thousand five thousand point value and there are different reasons for that Virgin America, their point system was a little different.
So you would get more value out of five thousand points, you would normally get with the five thousand points on a different airline, so it was cheaper, you can use fewer points, so that’s the breakdown with chase.
If you transfer 10,000 points, you get ten thousand, wherever you transfer them, this is important as well and I’ve used this from time to time, when you go to the airport, when you go to get a rental car, they always try to sell you their insurance.
The secondary is a primary, sometimes you don’t know and you end up getting their insurance chase, if you use their credit card, the Chase Sapphire Preferred you get primary collision insurance, so you don’t have to worry about getting their insurance, you have it covered here.
You don’t have to get your insurance company involved, if you have an accident, you can go straight through chase, so that’s a huge benefit and I’ve used it several times, you’ll have to look more into this.
I’ve never used this before, but this would be in situations where he had an emergency and you weren’t able to make the trip, if you’re in a situation, one of the benefits of using the credit card is that you have that zero liability protection and I’ve been in the situation where I’ve used my debit card somewhere and for whatever reason, they got my information and they went and took money directly out of my bank account.
In this situation, there’s no money coming out of your bank account, because it’s coming off the credit card, as long as you monitor your credit card, you’ll know I didn’t spend this $400, you call chase and they will take care of it for you.
There’s nothing directly linked to your bank account, in the situation where I hadn’t used my debit card, that was a situation where they took $400 and I had to wait they had to do their investigation, you have to wait a time period, it could be a week, two weeks where you don’t have that money.
If it’s money that you need to pay your bills, you’re in a situation that you don’t want to be in, so that’s good and that’s a benefit of using credit card as long as you can manage and not overspend and pay your credit card off every month.
It’s definitely better to use your credit card, I don’t want to talk too much about that, you have 24-hour customer service, so you can call someone 24 hours a day and get answers to your questions, so I wanted to go over that quickly with you.
Chase Sapphire Preferred is definitely a good card to consider and today we’re talking credit cards travel rewards credit cards and today we were talking about the Chase Sapphire Preferred card.
I will start doing a series of videos on credit cards specifically on travel rewards credit cards and the reason for it is that when I first started out in the whole travel rewards credit cards industry, I didn’t know what I was doing, I didn’t know what cards to get, I got a few credit cards that I shouldn’t have gotten, so I want to show you the different breakdown to show you different benefits and some of the negative parts of credit cards and that way you can decide what credit cards are best for you.
The Chase Sapphire Preferred card is a very good card and I’ll show you some of the perks, I guess the only negative would be that you have to pay a ninety five dollar annual fee, so be aware of that the good part of the annual fee situation is the introductory which is zero, you don’t have to pay anything.
When you first get the card, so you can have a four year, if you like it, you can keep it, if you don’t, you can cancel it, you don’t have to pay that 95 dollar annual fee, but be aware that there’s a ninety five dollar annual fee and some people get that, that’s a turn-off form and they don’t want to pay any type of fee for credit card.
If you can get more than $95 $95 worth of value every month or every year, then it’s a benefit to keep the card, you’ll change your mind about that whole annual fee situation, so you pay 50,000 bonus points, you have to hit the minimum spend of $4,000 and that’s in the three month period that might sound like a lot.
But if you’re using your credit card instead of your debit card and then paying your credit card off every two weeks or paying off every month, then you’ll be fine hitting that most people can hit that spin limit, it looks like a lot, but it’s not that much.
If you get the $50,000 the bonus points, then you’re looking at about six hundred and twenty five dollars and that is through the chase portal ultimate rewards, that’s through their travel portal now.
You can get even more value, if you go directly to say Chase is a partner with United Airlines, if you go directly to United, you can get more value and let me explain how that works, I transfer these points directly to United and I want to fly to Hawaii, a ticket to Hawaii round trip is about from LAX, from LA is about thirty five to forty thousand points, if I look at a ticket, that ticket is probably when I say ticket, a ticket that I’m paying for is going to be in the neighborhood of seven eight hundred bucks, sometimes nine hundred, depending on when you get it, if you look at the point breakdown the cash value.
I’m showing down the redemption cash value is five hundred dollars, that’s for fifty thousand points now, if I transfer to United and I’m using forty thousand points, so forty thousand points would be equivalent to four hundred dollars, so the value is four hundred dollars, I’m transferring over to United. But I’m getting about eight hundred dollars in value, because if I paid cash for my flight, then I would be paying $800, so it would be equivalent to about eighty thousand points.