Good morning everyone. In January, my fiance was approved for the Chase World of Hyatt Credit Card (my referral link) that offered 25,000 Hyatt points after spending $3,000 in 3 months and an additional 25,000 Hyatt points after spending $6,000 total in 6 months. We are planning a wedding, so spending $6,000 in 6 months was not a problem. This credit card also offers an extra free night certificate (for category 1-4 Hyatt properties) if you spend $15,000 during the cardmember year. So the dilemma is, after spending $6,000 on this credit card and earning 50,000 Hyatt points, is it worth spending an extra $9,000 on this credit card to get an extra free night certificate? Here are my thoughts…
Before I did anything else, I wanted to see how close my fiance was to the $15,000 spending threshold. To check her spending, she logged into her Chase account, clicked on her Chase World of Hyatt Credit Card, clicked the drop down menu, and clicked the Spending Report link.
She got this credit card in late January, so she only needed to check the year-to-date tab (if she got this credit card in 2018, she would need to look at the 2018 year-end summary tab as well as the year-to-date tab). According to her Spending Report, she spent ~$6,700, just enough to get the 50,000 Hyatt points, but not very close to the $15,000 mark to earn the extra free night certificate.
She would need to spend an additional ~$8,300 on the credit card to get the free night certificate (not so free anymore, is it?). If she spent the ~$8,300 on this credit card, she would get ~8,300 Hyatt points and a free night certificate. It is hard to put a value on the free night certificate, but if we assume she will redeem the free night certificate for a category 4 Hyatt property, that is the equivalent of redeeming 15,000 Hyatt points. Adding the 8,300 Hyatt points from the spend plus the 15,000 Hyatt points from the free night certificate, that equals 23,300 Hyatt points. According to Frequent Miler’s reasonable redemption value (RRV) table, Hyatt points are worth 1.74 cents per point (CPP). 23,300 Hyatt points x 1.74 CPP = $405.42 in value.
However, if she were to spend that ~$8,300 on her Citi Double Cash Credit Card, she would earn ~$166 cash back. I know $405.42 is much more than $166, but the majority of that value (15,000 Hyatt points x 1.74 CPP = $261) comes from the expected value of the free night certificate. You can definitely find category 4 Hyatt properties going for more than $261, but you can also find them going for much less also.
Since she has 9-10 more months to spend the extra ~$8,300, we (ok, mostly me) decided that I would do a mini App-O-Rama and get a few new credit card sign up bonuses to focus on. After we take care of those minimum spending requirements, we can circle back to the ~$8,300 remaining on the Chase World of Hyatt Credit Card and see if we want to complete that spending.
Do you think we made the right decision? What would you do if you were in this situation? If you have any questions, please leave a comment below. Thank you and have a great day.
P.S. Check back later today to see which new credit card I was instantly approved for and how I was able to start spending money on the card right away.