I use a Chase Sapphire Preferred Visa to accumulate their Ultimate Rewards points. Then I can transfer the points for free to my Southwest Rapid Rewards account. I get one point per dollar spent on anything, two points per dollar spent on travel and dining, then bonus points for purchases or travel through the Chase Ultimate Rewards shopping mall, which includes practically every store and travel site in existence like Target, Travelocity, Southwest, etc. I also get an annual bonus of 7% of the total points I earned the year before.
For example, if I spend $12,000 over the course of a year (though I actually spend more), on things that only earn me 1 point per dollar, then I'll have 12,000 points, plus my 7% bonus, for a total of 12,840 points. I can redeem that for a statement credit of $128.50, or I can transfer the points to Southwest, and use them towards flights that cost $109 or 5,470 points. So I'll have gotten a $218 round-trip flight for free, plus still have 1,900 points left.
This example gives the points a value of $.02 each, whereas redeeming them for cash is only worth $.01 each. It also means when I earn them, I'm basically earning double as much for Southwest flights as I would be for cash back. Since I shop through the Chase mall, and also spend money on dining and travel, I can earn four times as much on dining and travel, and even more with bonus points.
I love this card!
