TPG credit card reader question: Do cash back cards offer perks like lounge access?
Editor’s note: This article is part of our weekly column to answer your credit card questions. If you would like to ask us a question, tweet us at @thepointsguy, message us on Facebook or email us at info@thepointsguy.com.
Finding the right mix of credit cards that best suits your lifestyle and needs can be complicated. While sticking with a certain family of cards can be helpful for beginners as they learn rack up points, eventually, it’s a good idea to start diversifying your rewards portfolio.
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[pullquote source="Collin S"]Hi! Long-time reader, first-time emailer. For the longest time, I've paid for our household expenses and small business expenses with separate Chase Southwest Cards. Southwest is the largest airline at our airport, and I travel a lot for business. The companion pass really made it a great value for our family of four to travel together. We've gotten to the point where my business generates more points than we can use. I'd like to get a card that offers perks, such as lounge access when flying, etc. Is there a cash-back card that offers access to stuff like that? Or am I only going to find it with a travel rewards card?[/pullquote]
There is a lot of value in having cash-back cards in your wallet — whether your goal is to save money on travel or on everyday expenses. But unfortunately, cash-back cards rarely offer perks like lounge access or complimentary elite status. Those benefits are generally saved for more premium travel-focused cards that charge higher annual fees.
However, there are travel credit cards that do come with these perks that allow you to redeem points as a statement credit, making them function essentially like a cash back card. The best choice in this scenario? The Chase Sapphire Reserve.
Chase Sapphire Reserve
The Chase Sapphire Reserve is one of the best travel cards out there even though it charges a steep $550 annual fee. Still, you’re getting an up to $300 annual travel credit, Priority Pass lounge access, top-tier travel protections, up to $100 in application fee credits for Global Entry/TSA PreCheck and more.
The card earns 10x on Lyft, 3x on dining and travel and 1x on everything else. We recommend using your Ultimate Rewards points for travel most of the time since you can get a 50% redemption bonus when you book through the portal and transferring to partners can sometimes mean even more value. But you can also redeem points as cash back or through the Pay Yourself Back program.
When you redeem your Ultimate Rewards points for cash back, you’ll get one cent in value from each point — the same redemption rate as standard cash-back credit cards. Cash back can be redeemed as a statement credit or deposited into a connected bank account.
The Pay Yourself Back program allows you to redeem points at the same 50% redemption bonus as you get through the travel portal for select, eligible non-travel expenses up to 90 days after purchase.
Chase also lists Southwest as a transfer partner, which means you could easily transfer points to Southwest if you ever need to top off your Rapid Rewards account.
The Chase Sapphire Reserve is a great option to pair with Southwest credit cards that provide an avenue to redeem points for cash back while also offering the perks like lounge access.
Related: Chase Sapphire Reserve review
Pairing it with the Chase Freedom Unlimited
Another benefit to Chase credit cards is that you can pair them and pool points between your accounts.
The Chase Freedom Unlimited earns 5x on travel booked through the Chase portal, 3x on dining and drugstores and 1.5x on everything else. Those points are essentially cash back because you only get 1 cent of value from them. Still, if you also have the Chase Sapphire Reserve, you can pool your points into your Reserve account to use them as full-fledged Ultimate Rewards points (which means they’d be eligible for the 50% redemption bonus when using Pay Yourself Back).
The Chase Freedom Unlimited is a great card for everyday spending because you get 1.5x on everything. And it doesn’t charge an annual fee, so it doesn’t cost anything extra to have in your wallet.
Bottom line
You often hear redemption options for travel credit cards as limited to just airfare, hotels and miscellaneous travel expenses.
But the truth is that you can oftentimes redeem your points for more than just travel with these cards. While you may get the most value by redeeming for travel, if your family finds the most use in redeeming points at a fixed value for cash back, then that’s still a solid redemption in my book.
Just keep in mind with Chase credit cards that they do adhere to the 5/24 rule. If you’ve applied for five or more credit cards in the past two years across issuers, you’ll likely be denied a new Chase credit card.
Related: How to calculate your 5/24 standing
Top offers from our partners
How we chose these cards
TPG featured card
Rewards
3X | Earn 3X Miles on Delta purchases and purchases made directly with hotels. |
2X | Earn 2X Miles at restaurants worldwide, including takeout and delivery in the U.S. and at U.S. supermarkets. |
1X | Earn 1X Miles on all other eligible purchases. |
Intro offer
Annual Fee
Recommended Credit
Why We Chose It
Build your loyalty to Delta by applying for the carrier's mid-tier card option, the Delta SkyMiles Platinum card. The annual fee is quickly recouped by the card's travel perks, such as an application credit to Global Entry or TSA Precheck, annual companion certificate and so much more. Plus you can fast-track to elite status simply through card spend.Pros
- Earn bonus Medallion® Qualification Miles (MQMs) and an Medallion Qualifying Dollar (MQD) waiver when you hit specific spending thresholds with your card within a calendar year
- Receive a Domestic Main Cabin round-trip companion certificate each year
- Statement credit for TSA PreCheck/Global Entry fee (up to $100)
- First checked bag free
Cons
- Doesn't make sense if you don't fly Delta
- SkyMiles aren't the most valuable airline currency
- Earn 90,000 bonus miles after you spend $4,000 in purchases on your new Card in your first 6 months.
- Receive a Domestic Main Cabin round-trip companion certificate each year upon renewal of your Card. Payment of the government imposed taxes and fees of no more than $80 for roundtrip domestic flights (for itineraries with up to four flight segments) is required. Baggage charges and other restrictions apply. See terms and conditions for details.
- Enjoy your first checked bag free on Delta flights. Plus enjoy Main Cabin 1 Priority Boarding and settle into your seat sooner.
- New: Card Members get 15% off when using miles to book Award Travel on Delta flights through delta.com and the Fly Delta app. Discount not applicable to partner-operated flights or to taxes and fees.
- Earn 3X Miles on Delta purchases and purchases made directly with hotels.
- Earn 2X Miles at restaurants worldwide including takeout and delivery in the U.S., and at U.S. supermarkets.
- Earn 1X Mile on all other eligible purchases.
- Enjoy a per-visit rate of $50 per person for Card Members and up to two guests to enter the Delta Sky Club when traveling on a Delta flight.
- Fee Credit for Global Entry or TSA PreCheck® after you apply through any Authorized Enrollment Provider. If approved for Global Entry, at no additional charge, you will receive access to TSA PreCheck.
- Earn up to 20,000 Medallion® Qualification Miles (MQMs) with Status Boost® per year. After you spend $25,000 in purchases on your Card in a calendar year, you can earn 10,000 MQMs up to two times per year, getting you closer to Medallion® Status. MQMs are used to determine Medallion® Status and are different than miles you earn toward flights.
- No Foreign Transaction Fees.
- $250 Annual Fee.
- Terms Apply.
- See Rates & Fees
Rewards Rate
3X | Earn 3X Miles on Delta purchases and purchases made directly with hotels. |
2X | Earn 2X Miles at restaurants worldwide, including takeout and delivery in the U.S. and at U.S. supermarkets. |
1X | Earn 1X Miles on all other eligible purchases. |
Intro Offer
Earn 90,000 bonus miles after you spend $4,000 in purchases on your new Card in your first 6 months.Earn 90,000 Bonus Miles50,000 Bonus MilesAnnual Fee
$250Recommended Credit
Credit ranges are a variation of FICO© Score 8, one of many types of credit scores lenders may use when considering your credit card application.670-850Excellent/Good
Why We Chose It
Build your loyalty to Delta by applying for the carrier's mid-tier card option, the Delta SkyMiles Platinum card. The annual fee is quickly recouped by the card's travel perks, such as an application credit to Global Entry or TSA Precheck, annual companion certificate and so much more. Plus you can fast-track to elite status simply through card spend.Pros
- Earn bonus Medallion® Qualification Miles (MQMs) and an Medallion Qualifying Dollar (MQD) waiver when you hit specific spending thresholds with your card within a calendar year
- Receive a Domestic Main Cabin round-trip companion certificate each year
- Statement credit for TSA PreCheck/Global Entry fee (up to $100)
- First checked bag free
Cons
- Doesn't make sense if you don't fly Delta
- SkyMiles aren't the most valuable airline currency
- Earn 90,000 bonus miles after you spend $4,000 in purchases on your new Card in your first 6 months.
- Receive a Domestic Main Cabin round-trip companion certificate each year upon renewal of your Card. Payment of the government imposed taxes and fees of no more than $80 for roundtrip domestic flights (for itineraries with up to four flight segments) is required. Baggage charges and other restrictions apply. See terms and conditions for details.
- Enjoy your first checked bag free on Delta flights. Plus enjoy Main Cabin 1 Priority Boarding and settle into your seat sooner.
- New: Card Members get 15% off when using miles to book Award Travel on Delta flights through delta.com and the Fly Delta app. Discount not applicable to partner-operated flights or to taxes and fees.
- Earn 3X Miles on Delta purchases and purchases made directly with hotels.
- Earn 2X Miles at restaurants worldwide including takeout and delivery in the U.S., and at U.S. supermarkets.
- Earn 1X Mile on all other eligible purchases.
- Enjoy a per-visit rate of $50 per person for Card Members and up to two guests to enter the Delta Sky Club when traveling on a Delta flight.
- Fee Credit for Global Entry or TSA PreCheck® after you apply through any Authorized Enrollment Provider. If approved for Global Entry, at no additional charge, you will receive access to TSA PreCheck.
- Earn up to 20,000 Medallion® Qualification Miles (MQMs) with Status Boost® per year. After you spend $25,000 in purchases on your Card in a calendar year, you can earn 10,000 MQMs up to two times per year, getting you closer to Medallion® Status. MQMs are used to determine Medallion® Status and are different than miles you earn toward flights.
- No Foreign Transaction Fees.
- $250 Annual Fee.
- Terms Apply.
- See Rates & Fees