3 Easy Ways You Can Use a Cash Back Card to Save on Travel

Credit card rewards are one of the best ways to save on travel expenses. The typical advice here focuses on redeeming points earned using travel credit cards. But if you prefer cash back cards, you're not out of luck.

Although you may not realize it, using a cash back card in certain ways can help cut your travel costs. Below, you'll find three options to use your cash back card as a travel card.

1. Use your cash back for travel expenses

The beauty of cash back is that you can use it just about however you like. It's as good as cash, and most card issuers let you redeem it as a statement credit or a deposit to your bank account.

You could save up your cash back throughout the year and then use it as a statement credit for a travel purchase. Let's say you earn $800 in cash back. You could pay for airfare or a hotel stay with your card and effectively erase the purchase with your cash back.

Another option is to deposit your cash back to a savings account every month and make it part of your travel fund. For the best results, send it to a high-yield savings account so you're also earning a high interest rate on it.

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2. Move your rewards onto a travel card with the same card issuer

More and more card issuers are moving to a points system, even with their cash back cards. These cash back cards technically earn points in the card issuer's rewards program. If you only have a cash back card, then you're limited to redeeming rewards at $0.01 per point for cash back.

But that changes if you also have a travel card with the same card issuer. In that case, you could move points from your cash back card to your travel card. You'll then have all that card's travel redemptions available. Chase was one of the first card issuers to offer this with cash back and travel cards in its Ultimate Rewards program.

Let's say you have $500 in cash back, equal to 50,000 points. You send those 50,000 points to your travel card. Instead of being limited to cash back redemptions, you could now transfer your points to one of your card issuer's airline or hotel partners.

3. Get a cash back card with travel-friendly bonus categories

With so many cash back cards available, there's a wide range of bonus categories. Looking for bonuses that match your spending habits is a smart way to find the best credit card. Many cash back cards have bonus categories geared toward more everyday expenses, such as gas and groceries.

But there are also cash back cards with bonuses on travel and travel-type spending. For example, several cards earn bonus cash back on bookings made through the card issuer's travel portal. These portals usually let you book airfare, hotels, or rental cars. Some of them also offer activities, cruises, and tours.

In addition, you could find cards that earn bonus cash back on dining and entertainment. Those are both areas where people often spend more when they travel.

If you travel all the time, you may want to eventually look into travel credit cards. But if you just want to save money on the occasional trip, you could do that with a cash back card, too.