Chase Ultimate Rewards Points – The Secret Is Out!
Interested in a card that offers the Chase Ultimate Rewards program? We’ve put together a comprehensive list of everything you need to know about the program, and what to watch out for as you start earning points with a new card.
Chase has put together an impressive rewards program that has become extremely popular. Providing flexibility in redemption options including the option to convert low amounts of points into cash or travel rewards. All together we rate the Ultimate Rewards Program as one of the best. (As well it should be, Chase issues more cards than any other issuer, and thus should work hard to stay on top by pleasing their customers)
The Rewards Program Basics:
Chase has designed their ultimate rewards points to be equivalent to about $0.01 per point. You’ll earn a minimum of one point for each dollar you spend (although we’ll increase your earning potential below), and your points can be transferred to cash, other frequent flyer miles accounts, or used directly for travel when using the Ultimate Rewards Travel Tool website.
These ‘Ultimate’ points never expire, and can be transferred with a tremendous degree of flexibility, making them some of the best points out there. (Citibank ThankYou Points expire after 3 years and BofA Worldpoints disappear after 5 years)
Sign Up Bonuses
Who needs a rewards program if you don’t have miles to cash in? The best way to get started is to sign up for the Chase cards offering signup bonuses. Here are the best current sign up bonuses for Chase cards featuring Ultimate Rewards Points:
1. Chase Sapphire Preferred Card: 50,000 points after spending $3,000 in the first three months. No annual fee the first year, $95 after the first year.
2. Chase Ink Bold Plus with Ultimate Rewards: 50,000 points after spending $5,000 in the first three months. No annual fee the first year, $95 after the first year.
3. Chase Sapphire Card (Not the Preferred Card): No annual fee ever, but in exchange you’ll receive a smaller bonus of25,000 points, after spending $3,000 in the first three months.
4. Chase Freedom Card: $200 or 20,000 points. While primarily a cash back credit card the Freedom card will let you choose to transfer points to your Chase Ultimate Rewards Points account instead of redeeming for cash or gift cards. The Freedom has one of the best rotating ongoing bonus programs offering 5% back on categories that change quarterly. Again that is the equivalent of 5 points per dollar spent if you transfer the points to your Ultimate Rewards account.
Earning Points
The Ultimate Rewards program will earn miles at the rate of 1 mile per dollar spent, but we’ve dug around and found several ways you can make the program worth more than 1%.
· By far the best way to maximize your points for travel is to book travel through the online Chase travel booking website since your points are worth 25% more that way. Tickets are almost always the same price as booking through major travel websites like Travelocity or Expedia. Plus you earn double points using Chase’s travel booking service!
· Use the Ultimate Rewards Mall as a portal to the websites of other retailers and get another 10% bonus for every dollar you spend. (That’s a whopping 10 points per dollar spent!)
· Maximize the 5% bonus for certain Categories for the Freedom card. For the last quarter of 2011 these categories are: Movies, Dining, Department Stores, and Charities.
· Take advantage of promotions that come along with retail partners. For example, this summer stamps.com offered 2,500 Ultimate Rewards Points just for signing up.
Redeeming Points – Ultimate Flexibility
One of the sharp contrasts to many other popular rewards program is the degree of flexibility that Chase allows you to have with your rewards points. In almost any situation where you would like to transfer or move points around, Ultimate Rewards Points will accommodate you.
· Transferring Points with Ease – Need to transfer points to someone else’s frequent flyer account? Done. Want to transfer to someone else’s Ultimate Rewards account? Done. No fees, and the transfer is instant. Chase has successfully turned its nose to one of the most annoying features of other programs. They’re your points, you earned them, Chase lets you do what you want with them.
· Book with Chase – No blackout dates, no restrictions, and your points go 25% further when you book with Chase. This also means that those annoying gas surcharges or other taxes can be paid for with your points. When cashing in most other airline frequent flyer miles will leave you with at least part of the bill.
· Travel Partners – Instantly transfer your points at a 1 to 1 ration to any partner frequent flyer airline without any cost for the transfer. If you’re short 1000 miles, or even if your friend needs a few thousand miles to be able to join you on your next vacation, you can transfer the points easily online and they’ll be in your account instantly! American Express Rewards points will often come with an ‘excise fee’ every time you transfer, and Citicard and Bank of America points can only be used for their full value once you have at least 25,000 points accumulated.
· Cash - If you still can’t find what you need, or have any trouble finding the right partnership program, you can simply redeem your points for cash or gift cards. 2,000 points will get you $20 which you can even use as a credit ot your statement. We love this feature of the program because it eliminates so many of the steps that are usually required to get free travel with your rewards points. Want to book a trip to Tahiti but the flight you want is on Air New Zealand? (which is not a Chase points partner)? Either purchase it through the Chase website or if you find a better deal elsewhere, just purchase the flight you need and reimburse yourself by converting your points to a statement credit!
· Gift Cards and other Merchandise – Chase also offers the option to purchase ‘experiences’, merchandise, or gift cards with points, but when we do the math and a $25 gift card requires 2,500 points, it seems much better just to go with cash. After reviewing much of the merchandise and ‘experiences’ available, the redemption value of a point come in much closer to $0.076 per point. You’re better off with cash, miles, or booking travel with Chase.
To sum it all up, we at CreditSense think the Chase Ultimate Rewards program offers a high degree of flexibility, gives you opportunities to exceed the regular 1% earnings rate, and doesn’t throw additional fees and restrictions at you when you go to redeem your points. And if you’re working hard to save points for a big trip in the future, you don’t have to worry about points expiring.