Why are Chase Ultimate Rewards points so valuable?

#

Chase Ultimate Rewards points are one of our favorite rewards program currencies, for a combination of reasons: Ultimate Rewards points are far more valuable than the average rewards point, you have many options for racking up bonus points – including several credit cards that offer generous sign-up bonuses and a diverse array of bonus categories – and your redemption options are extremely flexible.

In the rewards card world, they are known as a “flexible points currency” – meaning you can redeem points for a variety of options, including travel, merchandise, gift cards and cash back. You can also transfer them between Ultimate Rewards cards and to a large list of airline and hotel loyalty programs, giving you access to a huge network of airlines that can take you practically anywhere you want to travel.

Top Chase Ultimate Rewards cards

No annual fee

Chase Freedom Unlimited

Chase Freedom Unlimited®

Premium travel

Chase Sapphire Preferred

Chase Sapphire Preferred® Card*

Luxury travel

Chase Sapphire Reserve

Chase Sapphire Reserve®

5X points on travel booked through Ultimate Rewards

3X points on dining and drugstore purchases

1.5X points on every other purchase

20,000 points if you spend $500 in first 3 months

2X points on travel and dining at restaurants worldwide

1 point per $1 on all other purchases

60,000 bonus points if you spend $4,000 in first 3 months

3X points on travel and dining at restaurants worldwide (excluding purchases covered by $300 travel credit)

1 point per $1 on all other purchases

50,000 bonus points if you spend $4,000 in first 3 months

Ultimate Rewards points value

The value of Ultimate Rewards points varies greatly, depending on how you redeem your points. Most redemption options – including cash back and travel redemptions through the Chase Ultimate Rewards portal – are worth 1 cent, but the value can exceed 2 cents per point if you take advantage of transfer options. A few options, including Amazon.com purchases, are worth less than 1 cent per point.

Redemption Option Point Value
Sapphire Reserve travel redemption (50% bonus) 1.5 cents
Sapphire Preferred and Ink Business Preferred travel redemption (25% bonus) 1.25 cents
Regular travel redemption 1 cent
Statement credit 1 cent
Direct deposit 1 cent
Gift cards 1 cent
Ultimate Rewards portal travel 1 cent
Apple products 1 cent
Amazon.com purchases 0.8 cent
Chase Pay purchases 0.8 cent
Singapore Airlines transfer 2.17 cents
World of Hyatt transfer 2 cents
Iberia Plus transfer 1.7 cents
Southwest Airlines transfer 1.57 cents
United Airlines transfer 1.52 cents
British Airways transfer 1.4 cents
Korean Air transfer 1.4 cents
Emirates Skywards transfer 1.1 cents
Air France/KLM transfer 1 cent
Aer Lingus transfer 1 cent
Virgin Atlantic transfer 0.8 cent
Marriott Bonvoy transfer 0.8 cent
IHG Rewards Club transfer 0.65 cent

One key point to estimating the value of your Ultimate Rewards points: You get a 25% to 50% bonus on your Ultimate Rewards points if you own a premium card such as the Chase Sapphire Preferred Card or Chase Sapphire Reserve and redeem your points for travel through the Ultimate Rewards portal. So, basically, your points are worth between 1.25 and 1.5 cents (depending on which card you own) if you plan to use them for travel rewards. We value Ultimate Rewards points at 1.26 cents per point on average.

As you can see from our chart below, Ultimate Rewards points far exceed the value of the average credit card rewards point, which hovers around 1 cent per point. Compared to other loyalty programs, Ultimate Rewards points fall in the middle-of-the-pack – they are outmatched by miles-based programs, such as AAdvantage and MileagePlus, but they beat the value of similar points-based programs, such as American Express Membership Rewards and Citi ThankYou:

Point value by loyalty program

Other advantages of Ultimate Rewards points:

Ultimate Rewards points don’t expire

Your Ultimate Rewards points are valid as long as your account is open. Also, if you own a premium Ultimate Rewards card, such as the Sapphire Preferred or Sapphire Reserve cards, you can transfer your points to one of those cards or to one of Chase’s travel partners if you plan to close a card.

There’s no limit to how many Ultimate Rewards points you can earn

Though some Ultimate Rewards cards – such as the Chase Freedom card – may enforce a cap on the number of points you can earn on bonus categories, there are no overall limits to the number of Ultimate Rewards points that you can earn in a year or over the lifetime of your Ultimate Rewards membership. As long as you use your cards, you will accumulate Ultimate Rewards points.

You can redeem Ultimate Rewards points for a variety of rewards

Though travel rewards are your best bet, the Ultimate Rewards program gives you a diverse array of redemption options, including statement credits, bank deposits, gift cards and merchandise. Also, you have a lot of flexibility in how you redeem your points for travel. You can purchase travel from an outside site and redeem your points for statement credits or you can purchase travel through the Ultimate Rewards site.

 You can transfer Ultimate Rewards points to Chase’s travel partners at a 1:1 rate

One of the main advantages of Chase Ultimate Rewards is that you can transfer them to an outside loyalty program if you own an Ultimate Rewards card with an annual fee. Chase’s list of travel partners includes several major airlines and hotel chains – giving you access to a worldwide travel network. Your points transfer at a 1:1 rate, which means your points maintain their value once you transfer them.

You can redeem any number of Ultimate Rewards points at any time

You don’t have to wait to accumulate a certain number of Ultimate Rewards points to start using them. You can redeem your points starting at 1 point per 1 cent of cash back.

You can combine points and cash to book travel rewards

You don’t have to worry about collecting a large amount of points to book a travel reward. If you don’t have enough points for a particular flight, you can use cash to cover the remainder of the fare (though a minimum number of points may be required for some flights).

You can transfer Ultimate Rewards points between cards

For rewards card jugglers, Ultimate Rewards offer the valuable opportunity to combine points earned across any Ultimate Rewards cards you have open. This is a great feature that makes combining cards particularly lucrative, as you can stockpile rewards earned on different bonus categories across cards. Plus, if you have a premium card like the Sapphire Preferred or Sapphire Reserve, you can transfer points to that card to unlock a higher point value when redeemed for travel through the Ultimate Rewards portal.

One small drawback: You can’t buy Ultimate Rewards points

Unlike some rewards programs, Chase doesn’t allow you to purchase points to make up for a lack of points. However, given the program’s flexibility, paying with points is mostly an unnecessary option. You can pay with cash to make up for missing points in most cases.

*All information about the Chase Sapphire Preferred Card has been collected independently by CreditCards.com and has not been reviewed by the issuer. This offer is no longer available on our site.

Source: creditcards.com

Chase Sapphire cards offering rewards, statement credits for groceries

Ten months into the COVID-19 pandemic, many consumers have settled into new routines and developed new spending patterns. One of the spending categories that hasn’t lost its popularity is groceries, as many people are cooking more at home and eating out less frequently.

See related: Grocery shopping and COVID-19: What’s changed and how to save money

Credit card issuers are adapting to these new patterns as well.

On Oct. 20, 2020, Chase announced it would be temporarily adding grocery rewards to the Chase Sapphire Preferred® Card* and Chase Sapphire Reserve®. This comes on top of other limited time offers the issuer has recently added, such as limited time redemption options through Pay Yourself Back and gas and grocery store purchases counting toward the Reserve card’s $300 travel credit.

See related: Guide to Chase Pay Yourself Back

“Throughout this very unique year, we’ve provided our cardmembers flexibility and options to get the most out of their cards …  as well as limited time opportunities to earn more points on certain spending,” Chase said in a statement. “We want to continue to give our cardmembers ways to maximize value where they are spending today.”

On top of that, on Jan. 28, 2021, Chase added an offer for new Chase Sapphire Preferred cardholders: a one-time automatic $50 statement credit on grocery store purchases.

How the limited time grocery rewards work

Starting Nov. 1, 2020 and running through April 30, 2021, Sapphire Reserve cardmembers will earn 3 points per dollar on grocery store purchases, and Preferred cardmembers will earn 2 points per dollar, up to $1,000 in purchases per month. According to Chase, this will be automatic for existing and new cardmembers.

See related: Best credit cards for grocery shopping

This provides cardholders with an excellent opportunity to earn some of the most valuable travel points while travel is still limited.

The new offer also makes Sapphire cards more competitive when compared with the recently updated Chase Freedom card suite. In August, the issuer replaced the Chase Freedom with the Chase Freedom Flex and added three new valuable rewards categories to both the Freedom Flex and Chase Freedom Unlimited, namely bonus cash back on travel purchased through Chase Ultimate Rewards and on dining and drugstore purchases.

Considering neither Freedom card charges an annual fee and both earn Chase Ultimate Rewards points, some cardholders may be wondering if the Chase Sapphire Reserve is worth keeping during a time when most of its premium travel perks might go unused.

Fortunately, all the limited time offers coupled with temporary grocery rewards make it much easier to get value of these popular travel cards – even when you’re not traveling.

How the grocery statement credit works

Another incentive to apply for the Chase Sapphire Preferred card now is the new one-time $50 statement credit on grocery purchases.

New cardmembers will get access to the statement credit automatically and be able to use it for 12 months from the time of account opening. Eligible purchases include purchases made at merchants coded as grocery stores. Warehouse club purchases won’t qualify.

Chase hasn’t announced the offer’s expiration date yet.

Chase Sapphire cards value at a glance

Chase Sapphire Reserve®

Chase Sapphire Reserve®

Chase Sapphire Preferred® Card

Chase Sapphire Preferred® Card

Newly added limited-time benefits Cardmembers earn more on grocery store purchases: Nov. 1, 2020 – April 30, 2021

  • 3 points per $1 spent
  • Up to $1,000 in grocery store spend per month

Gas and grocery purchases count toward Sapphire Reserve $300 travel credit: 

  • Gas and groceries have been added as qualifying purchases, through June 30, 2021
New cardmembers receive an automatic statement credit:

  • One-time $50 statement credit on eligible grocery store purchases available for 12 months from the account opening

Cardmembers earn more on grocery store purchases: Nov. 1, 2020 – April 30, 2021

  • 2 points per $1 spent
  • Up to $1,000 in grocery store spend per month
Existing benefits
  • 3 points per dollar on dining purchases with restaurants – including delivery and pick-up
  • 3 points per dollar on travel – including tolls and parking
  • Complimentary DashPass Subscription from DoorDash, valued at over $100 per year
  • Up to $120 in statement credits on DoorDash purchases – $60 in statement credits through 2020 and another $60 in statement credits through 2021
  • 10 points per dollar on Lyft rides
  • Complimentary Lyft Pink membership, worth a minimum of $199 in value when you activate by March 21, 2022
  • Pay Yourself Back: Points are worth 50% more now through April 20, 2021 when redeemed for purchases in current categories of grocery, dining, home improvement and contributions to select charities
  • Chase Dining: Points are worth 50% more when redeemed through the new Chase Dining hub in Ultimate Rewards, now through April 30, 2021
  • 2 points per dollar on dining purchases with restaurants – including delivery and pick-up
  • 2 points per dollar on travel – including tolls and parking
  • Complimentary DashPass Subscription from DoorDash, valued at over $100 per year
  • 5 points on per dollar on Lyft rides
  • Pay Yourself Back: Points are worth 25% more now through April 20, 2021 when redeemed for purchases in current categories of grocery, dining, home improvement and contributions to select charities
  • Chase Dining: Points are worth 25% more when redeemed through the new Chase Dining hub in Ultimate Rewards, now through April 30, 2021

 

Bottom line

While travel isn’t the most lucrative rewards category at the moment, your Chase Sapphire card can still bring you plenty of value, especially given the temporary rewards categories and other limited time offers.

*All information about the Chase Sapphire Preferred Card has been collected independently by CreditCards.com and has not been reviewed by the issuer. This offer is no longer available on our site.

Source: creditcards.com