Don’t Fall for Cash Back: Why Travel Points Are More Valuable

By Tim, founder of Travel Multiplier.

People often think, "Cash back is king", and you've probably used some type of cash-back credit card for a long time. I remember getting my first cash-back credit card 20 years ago, and since then I've had many different cards that have earned me 2-5% cash-back on all of my purchases. Now, I can look back and see how much I actually missed out on by using those cash-back cards. If I had used travel rewards credit cards instead of cash-back cards, I could have earned millions of travel rewards points instead of hundreds of dollars in cash-back.

The Case For Cash Back Cards

At a foundational level, getting cash back is great! Anything that puts more money in our pockets is very useful. Many people enjoy using cash-back cards to fund Christmas gifts, pay for date nights with their spouse, or give them extra spending money. Those things are good, but if you are someone who values travel, there's a much better alternative!

The Case Against Cash Back Cards

Let me show you how this played out for me. For years, I used my Amazon Prime Card to get 5% cash back on all Amazon purchases. We intentionally channeled many of our personal expenses through Amazon to get 5% back. Plus, I also used it for many reimbursable work purchases to earn even more. In my highest year, my personal & professional expenses on Amazon were around $25,000, which earned me around $1,250 cash back. I took that money and used it to book a weekend at a one-bedroom apartment for our family on the oceanfront boardwalk in Ocean City, New Jersey. But because of the high cost to book that place during the Summer, we had to wait and book it in the September off-season when the weather and water were both much colder and much of the boardwalk had closed down. If only I had known there was a better way that could have earned us enough travel points to book an ocean-front suite in peak season for a week (or longer) for free.

How Travel Points Can Add Value

Here is the math behind the illustration: 370,000 points redeemed at an assumed 2 cents per point would represent $7,400 in travel value. Compared with $25,000 in spending, that is 29.6% before card fees, interest, taxes, or other costs.

That calculation does not establish that someone can earn 370,000 points from $25,000 of ordinary spending. The earning total would depend on eligible offers, spending requirements, approvals, and card terms. It is an illustration, not a promised return or a record of cash saved.

What You Miss at First Glance

The same rewards can have different values when used for travel, cash back, or gift cards. Compare the options your card actually provides instead of assuming that travel always wins. Chase explains how redemption values can differ.

As of October 3, 2026, Chase Sapphire Preferred points transfer to World of Hyatt at a 4:3 ratio. That means 20,000 Ultimate Rewards points become 15,000 Hyatt points. See Chase’s announcement of the transfer change.

Using the 6,500-point nightly rate from the original article as a hypothetical, three nights would require 19,500 Hyatt points. A 15,000-point Hyatt balance would cover two nights at that rate, with 2,000 points left. This is not a current quote for an Orlando hotel. Check the actual award price, room availability, and cash rate for your dates before transferring points.

Compare the Costs and Tradeoffs

Travel rewards are not risk-free. Card fees, interest, credit effects, and redemption restrictions can reduce their usefulness. FICO explains the credit and interest risks of travel hacking.

If cash back fits your plans better, compare that option using the redemption value your program actually offers. Different programs and cards have different cash-out rules. Travel value and cash back are not interchangeable.

Think Before You Act

All of this paints a compelling picture of what you've likely been missing out on and how much more you could be earning on everyday expenses like gas, groceries, utilities, cell phones, entertainment, online shopping, and more. But here's a key thing you need to know, there are over 90 different travel credit cards on the market. Knowing which cards are worth it, which cards to get, and what order to get them in is the difference of thousands of dollars in rewards.

I would love to help you navigate all of that! I can teach you how to earn 5-50% return on everyday spending to leverage for world-class travel in my Becoming a Travel Hacker Course!