re: Chase Sapphire Preferred sign up bonus

quote:

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When you redeem the 40000 points for cash you get 400 dollar credit. If you redeem it on travel you get 500 statement credit. Not a huge difference but I see what you mean

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That's really over simplifying it. Chase points have way more value than that.

That's if you redeem through Chase. If you transfer the points to airline partners, they are worth far more.

When you redeem through Chase for travel, you get 1.25 cents per point, hence the difference between $400 cash back credit and $500 travel credit. .25 X $400 = $100 + $400 = $500.

If you transfer to an airline, the value shoots up to at least 2 cents per point, and if you redeem for first class international tickets, the points could be worth even more, touching 4, or 5 cents per point. It all depends on the monetary value of the ticket you are redeeming points for.

I'm just looking out for you. People should really research their credit card rewards options or you might waste a lot of value.