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How I Scored a Free Night at a Hostel Using This Popular Credit Card Perk

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Brett Holzhauer
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Brett Holzhauer

Content Contributor

80 Published Articles

Countries Visited: 22U.S. States Visited: 29

Brett is a personal finance and travel junkie. Based out of Fort Lauderdale, he's had over 100 credit cards and earned millions of credit card rewards.
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Michael Y. Park

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Michael Y. Park is a journalist living in New York City. He’s traveled through Afghanistan disguised as a Hazara Shi’ite, slept with polar bears on the Canadian tundra, picnicked with the king and que...
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Jestan Mendame

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Since 2016, he has embraced the life of a digital nomad, making the world his office. He has built a career in social media marketing and blogging for various travel brands, which is also his bread an...
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I’m in the middle of a 3-week adventure backpacking through Europe. Since I’m traveling alone and want to save on expenses, I’m staying in hostels for the majority of the trip.

Typically, there are few ways to redeem points and miles for hostels, but using my Chase Sapphire Preferred® Card, I was able to redeem the annual $50 hotel credit for a free night at a hostel in Iceland.

Here’s how I did it, and what to keep in mind for your next accommodation booking if you have the Chase Sapphire Preferred card.

Using the Chase Sapphire Preferred Card Hotel Credit

The Chase Sapphire Preferred card comes with a $50 hotel credit for each year you have the card. To use it, book an accommodation through Chase Travel, and you’ll be credited $50 on your statement. You can find a long list of accommodations on the portal, including hotels, motels, inns, and even hostels.

When I searched for a cheap 1-night stay in Iceland, I found this hostel and made a booking for just under the $50 mark.

Hostel Stay
Image Credit: Chase Travel

And just a few days after my booking, the credit appeared on my statement.

Chase Hotel Credit
Image Credit: Chase

Earn 5x Points When Booking Through Chase Travel

When using the credit, you won’t earn any Chase points on the first $50 of your purchase. My purchase earned zero points, as the stay was under the threshold.

However, for anything above that, you earn 5x points on all travel booked through Chase Travel when using your Chase Sapphire Preferred card. This is effectively 10% back in value, as Upgraded Points values Ultimate Rewards points at 2.0 cents per point. If you’re a traveler who doesn’t focus on leveraging loyalty status with an airline or hotel brand, this is a great credit to use.

What’s more, you can book more than flights or stays with Chase Travel. You can book rental cars, activities, cruises, and more.

Hot Tip:

When you book travel with the Chase Sapphire Preferred card, you’re covered with comprehensive travel insurance, including trip cancellation and trip delay protection.

What To Keep in Mind With the Chase Hotel Credit

Spending credits is quite popular now for travel credit cards. Some are flexible to use, while others aren’t. The Chase Sapphire Preferred card hotel credit is somewhere in the middle.

To use the credit, you must book through the Chase travel portal and pay using the card. The platform is easy to navigate, but keep in mind you won’t be able to take advantage of any hotel status you may have. When you book through Chase Travel you’re booking through a third party, so you won’t earn any points toward another loyalty program.

There are 2 strategic ways to use this credit:

  • Stay at an independent hotel that doesn’t have a loyalty program. That way, you won’t miss out on any potential rewards or miss out on using any loyalty benefits you may have.
  • Save the credit for a cheap 1-night stay. It may not cover the entire purchase, but you may get lucky with an inexpensive night that could be mostly covered.
Hot Tip:

The hotel booking doesn’t have to be in your name to redeem the credit — simply using the card through the Chase travel portal will trigger the credit.

Final Thoughts

This $50 hotel credit is an easy way to reduce the card’s effective annual fee to $45. So, if you have the Chase Sapphire Preferred card, make a mental note to either use or give away the credit to ensure it doesn’t go unused.

Brett Holzhauer's image

About Brett Holzhauer

Brett is a personal finance and travel junkie. Based out of Fort Lauderdale, he’s had over 100 credit cards and earned millions of credit card rewards. He learned the tricks of the trade from his mom, and has taken many steps forward. He wasn’t exposed to much travel as a kid, but now has a goal of reaching 100 countries in his life. In 2019, he sold all of his possessions to become a digital nomad, and he says it was one of the best decisions he ever made. He plans to do it again at some point in his life.

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