The ultimate guide to turning cash back into (exponentially more valuable) travel rewards

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• Travel rewards can be worth significantly more than cash back.
• It’s possible to turn cash back into travel rewards by holding the right travel credit cards.
• If you earn cash back with cards issued by Capital One, Chase, or Citi, your rewards likely can be transferred to airlines and hotels.
• Read Insider’s guide to the best travel rewards credit cards.

Cash has always been king. It’s got unparalleled flexibility, it’s got an easy-to-understand value, and many of the best credit cards make it easy to earn.

But the truth of the matter is that it’s nowhere near the most valuable credit card rewards currency to earn. Travel points can be worth many, many times more. If you desire to travel, you’ll want to focus your energy on travel rewards instead of cash back.

Here’s something surprisingly few credit card holders know: If you use a cash-back credit card issued by Capital One, Chase, or Citi, you may be able to convert the cash back you’ve earned into travel rewards. There’s a trick to this, but it’s very easy to do.

We’re focused here on the rewards and perks that come with each card. These cards won’t be worth it if you’re paying interest or late fees. When using a credit card, it’s important to pay your balance in full each month, make payments on time, and only spend what you can afford to pay.

Why you might want travel rewards instead of cash back

Cash back is worth a flat rate. You’re never going to get an outsized value from a dollar bill — it’s worth what it’s worth.

Travel rewards are different. With little exception, the value you get from them can vary greatly depending on how you use them. As an example, let’s take a look at two Dallas Marriott hotels.

The Las Colinas Resort, Dallas, costs $676 per night, or 42,000 Marriott points. Staying at this hotel will net you a value of 1.6 cents per Marriott point.

But the hotel right beneath it, the W Dallas – Victory, sells for $453 per night or 43,000 points per night — giving you a value of 1.07 cents per point. That’s over 30% less value than had you used your points at The Las Colinas Resort.

The point is, it’s possible to get way more value from travel rewards than cash back. If you regularly convert your cash back into travel rewards, you are potentially receiving a higher earning rate on your cards. Insider’s points and miles valuations attempt to pinpoint a ballpark value for each rewards currency.

Let’s take a look at the different credit cards that allow you to convert your cash back into travel rewards — and the effective return rate you’re getting based on Insider’s points and miles valuations.

Capital One miles value: 1.7 cents each

To turn cash back into Capital One miles, you’ll need one of the following cards:

Capital One offers a healthy selection of cash-back credit cards for all financial situations — and even the cards designed to help you build credit for the first time can help you accumulate Capital One miles. As long as you have one of the above cards, you can instantly convert your cash back into miles.

In your online account, simply head to the “Share My Rewards” button in the Rewards tab. You’ll receive 1 Capital One mile for every 1 cent you transfer.

Here’s a look at all the Capital One cash back-earning credit cards whose rewards you can turn into Capital One miles.

Chase Ultimate Rewards points value: 1.8 cents each

To turn “cash back” into transferable Chase Ultimate Rewards points, you’ll need one of the following cards:

Chase boasts a large collection of cash-back credit cards — but these cards don’t technically earn cash back. They instead earn Chase Ultimate Rewards points which can be redeemed for cash back at a rate of 1 cent each. In other words, these cards are, in effect, cash back.

You can convert these rewards into points that can be transferred to airlines and hotel partners by heading to the Chase Ultimate Rewards site and signing in using your Chase account credentials. You’ll then be able to move your Chase points from one card to another, similar to the way you transfer money between a checking and savings account. Simply transfer your points to one of the above cards, and you’ll instantly be able to transfer them to travel programs.

Citi ThankYou points value: 1.6 cents each

To turn cash back into Citi ThankYou points, you’ll need one of the following cards:

*This card only unlocks the ability to transfer points to JetBlue, Choice, and Wyndham.

Citi technically only has one cash-back credit card eligible to convert its rewards into Citi ThankYou points. It also issues a couple of other cards that earn Citi ThankYou points directly, though you cannot transfer them to airline and hotel partners unless you have one of the above cards. The best value you’ll get from them is cashing them out at 1 cent per point — making them essentially cash-back cards.

To make your points transfer eligible, you’ll have to move your points from one of the below cards to one of the above cards. Sign in to the Citi ThankYou portal to do this. The process is similar to that outlined above with Chase.

Here’s a look at the Citi credit cards whose rewards you can convert into transferable Citi ThankYou points.

What you need to know about converting cash back into travel rewards

Even if you don’t have a single travel point to your name, you may still have a large stash of cash back that can be converted into travel rewards. The above tables will tell you which cards you’ll need to unlock the true potential of your cash back.