Travel is expensive. And so is childcare. So imagine trying to comfortably afford both without feeling like you’re spending your life savings. Luckily, I found a way.
For years, I only had one cash-back credit card, and affording travel for two kids isn’t cheap. I’d always heard of charging what you can afford on your credit card, then paying it in full to reap the rewards. And many travel credit cards come with perks that can save money on flights and hotels. So I gave it a shot.
Over the past year, the card has helped me and my husband afford a lot of flights and hotels -- especially spur-of-the-moment travel. And with a trip to Disney World around the corner, my son’s monthly daycare expense is helping foot the bill to see Mickey. Here’s how.
How I chose my first travel rewards credit card
There are plenty of cards to choose from, but I wanted a travel credit card that already aligned with my spending and had an annual fee that was less than $100. Based on my preferred travel brands and spending categories, I narrowed it down to the Chase Sapphire Preferred™. Plus, the card comes with a few perks I can use, including an annual $50 hotel credit that can be applied toward hotel stays booked through the Chase Travel℠ portal. Here’s a glimpse at the card’s details.
CNET’S PICK
Chase Sapphire Preferred® Card
9/10 CNET Rating CNET rates credit cards by comparing their offers to those of their categorical competitors. Each card is individually evaluated through a formula which reflects the standards and expectations of the contemporary market. Credit card issuers have no say or influence in our ratings. How we rate credit cards
- Intro Offer
-
75,000 bonus points Earn 75,000 bonus points after you spend $4,000 on purchases in the first 3 months from account opening. That’s over $900 when you redeem through Chase Travel℠.
- Annual fee
- $95
- APR
- 21.49% – 28.49% Variable
- Recommended Credit A credit score is used to indicate an applicant’s credit worthiness and may provide guidance about account eligibility. It does not necessarily guarantee approval for any financial product.
- 670 – 850
Good – Excellent
- Rewards rate
-
1x – 5x 5x on travel purchased through Chase Travel℠.; 3x on dining, select streaming services and online groceries.; 2x on all other travel purchases.; 1x on all other purchases.
Rewards Rate
5x
5x on travel purchased through Chase Travel℠.
3x
3x on dining, select streaming services and online groceries.
2x
2x on all other travel purchases.
1x
1x on all other purchases.
Don’t Miss Out
Right now, the Chase Sapphire Preferred® is offering a limited-time, elevated 75,000-point welcome bonus when you open the card and spend $4,000 within the first three months.
How the points are helping me save money on travel
With my first credit card, I only paid for utilities and streaming subscriptions. But by the time I got the Sapphire Preferred, I felt more confident about managing money. I put my biggest expense on the card -- my son’s $1,300-per-month daycare bill.
Before earning points, I was earning cash back on my son’s daycare bill but it wasn’t enough to make it worthwhile to me. The $1,300 was only adding up to $26 in cash back each month. Now, I’m still only earning 1 reward point for each dollar I spend on daycare with my Sapphire Preferred card. But here’s the benefit: If I book flights or hotels using Chase Travel, I can redeem the rewards at 1.25%.
Let’s do the math.
Right now, I have 38,000 points with 8,000 points pending, for a total of 46,000 points. If I redeem the points on the Chase Travel portal, the points could be worth $575.
If I booked a round-trip flight to Orlando for my son’s Disney trip through Chase Travel today, I’d pay $33 for one of the tickets (not including taxes and fees). Note that the flight was originally $511 for Dec. 26 to 30, which is a big difference for a family of four.
If I wait to book a flight until October, I’ll have paid for five more months of daycare by then. Since the bill is $1,300 (assuming the price doesn’t go up), I estimate I’ll earn another 6,500 points, for a total of 52,500 points with an estimated value of $656 when redeemed through Chase Travel. This isn’t enough to cover the entire trip, but it’s a big help. And that doesn’t include other points I’ll earn for other purchases.
If you’re eyeing the Sapphire Preferred, you’ll earn a 10% anniversary bonus based on your total spend for the previous year. The bonus offers one point per $1. For instance, if I only paid for my son’s daycare using the card, my total $15,600 would earn me an extra 1,560 points (worth approximately $19.50 more toward travel if booking through Chase Travel).
Aside from the Chase Travel portal, I can also transfer the points to one of Chase’s travel partners, such as Marriott Bonvoy -- we’re already loyalists. The 52,000 can be transferred to my Bonvoy account to add to other points we’ve accumulated from booking with Marriott to help cover our stay in Florida. While I won’t be able to redeem at 1.25%, I’m still OK with the savings even if it’s at a rate of 1% per dollar.
What to know before you apply
I’ve been following the same strategy for a little over a year now with the Sapphire Preferred. And it has certainly fast-tracked my travel goals compared to my flat-rate 2% cash-back card. But beware of any additional fees for paying with a credit card. For my childcare provider, that’s 3%. I don’t mind it, but always check beforehand to avoid any surprises.
And like any credit card, it’s important to pay the card in full and on time every month to avoid any interest that could wipe out the value of your reward earnings.
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