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

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.

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

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.

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.

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.