Chase Ultimate Rewards

Chase Ultimate Rewards are earned through Chase credit cards. They can work effectively for earning rewards for airline points and miles through their rewards program, Chase Ultimate Rewards.

Chase offers several credit cards that are excellent choices for earning rewards towards free travel. Here are some of the best Chase cards for free travel (information accurate as of March 2024):

1. Chase Sapphire Preferred® Card: Sign-up Bonus: Offers a generous sign-up bonus after meeting minimum spending requirements.

• Earn Points: Earns 2X points on travel and dining at restaurants worldwide, and 1X point per dollar spent on all other purchases.
• Ultimate Rewards: Points earned with this card can be redeemed for travel through the Chase Ultimate Rewards portal at a 25% bonus or transferred to airline and hotel partners.
• Travel Benefits: Includes travel and purchase protection benefits.

2. Chase Sapphire Reserve®: Premium Travel Rewards: Offers a higher level of rewards and benefits compared to the Chase Sapphire Preferred.

• Sign-up Bonus: Typically offers a substantial sign-up bonus after meeting minimum spending requirements.
• Earn Points: Earns 3X points on travel (excluding $300 travel credit) and dining at restaurants worldwide, and 1X point per dollar on all other purchases.
• Ultimate Rewards: Points can be redeemed for travel through the Chase Ultimate Rewards portal at a 50% bonus or transferred to airline and hotel partners.
• Travel Benefits: Includes Priority Pass Select lounge access, a $300 annual travel credit, Global Entry/TSA Precheck fee credit, and other premium travel perks.

3. Chase Freedom Flex℠: Rotating 5% Cash Back Categories: Earns 5% cash back on up to $1,500 in combined purchases in bonus categories each quarter you activate (requires activation).

• Quarterly Bonus Categories: Categories change every quarter and often include popular travel-related categories such as gas stations, grocery stores, and streaming services.
• Ultimate Rewards: Points earned can be combined with those from other Chase cards that earn Ultimate Rewards and redeemed for travel or transferred to travel partners when paired with a premium card like the Sapphire Preferred or Sapphire Reserve.

4. Chase Freedom Unlimited®: Unlimited Cash Back: Earns unlimited 1.5% cash back on all purchases.

• Ultimate Rewards: Points can be combined with those from other Chase cards that earn Ultimate Rewards and redeemed for travel or transferred to travel partners when paired with a premium card like the Sapphire Preferred or Sapphire Reserve.

5. Chase Ink Business Preferred® Credit Card: Business Card Rewards: Ideal for small business owners, this card offers a significant sign-up bonus and rewards on business expenses.

• Earn Points: Earns 3X points on the first $150,000 spent in combined purchases each account anniversary year on travel, shipping purchases, internet, cable, and phone services, and advertising purchases made with social media sites and search engines.
• Ultimate Rewards: Points can be redeemed for travel through the Chase Ultimate Rewards portal or transferred to travel partners.
• Business Benefits: Includes employee cards at no additional cost, cell phone protection, and other business-focused perks.

These Chase cards offer various features and benefits, so the best option for you depends on your spending habits, travel preferences, and willingness to pay annual fees. Make sure to compare the rewards structures, sign-up bonuses, annual fees, and additional perks to find the card that aligns with your needs and preferences.

How Chase Ultimate Rewards’ Works

1. Earn Points: With a Chase credit card that earns Ultimate Rewards points (such as the Chase Sapphire Preferred or the Chase Sapphire Reserve), you earn points on your purchases. Different cards offer different earning rates, often with bonus categories like travel, dining, groceries, and more.

2. Accumulate Points: As you use your Chase credit card for purchases, you accumulate Ultimate Rewards points in your account. You can track your points balance either through your online Chase account or the Chase mobile app.

3. Redeem Points for Travel: Once you’ve accumulated points, you can redeem them for travel through the Chase Ultimate Rewards portal. This portal allows you to book flights, hotels, rental cars, and other travel experiences using your points. Depending on the card you have, your points may have a fixed value when redeemed through the portal, or they may be worth more if you have a premium card like the Chase Sapphire Reserve.

4. Transfer Points to Travel Partners: Alternatively, you can transfer your Ultimate Rewards points to various airline and hotel loyalty programs at a 1:1 ratio. Chase has several transfer partners, including airlines like United, Southwest, and British Airways, as well as hotel chains like Hyatt and Marriott. Transferring points to these partners can often yield even greater value, especially if you’re booking premium cabins or luxury hotel stays.

5. Maximize Benefits and Perks: In addition to earning and redeeming points, many Chase credit cards offer valuable travel benefits and perks, such as travel insurance, airport lounge access, statement credits for travel expenses, and more. These benefits can enhance your travel experience and provide additional value beyond just earning and redeeming points.

Overall, by strategically using a Chase credit card to earn Ultimate Rewards points on your everyday spending and taking advantage of the redemption options available through the Ultimate Rewards program, you can effectively earn free travel or maximize the value of your travel experiences.

Chase Ultimate Rewards Travel Partners

Chase Ultimate Rewards points can be transferred to several travel partners, including airlines and hotels. Here are the Chase Ultimate Rewards travel partners:

Airlines:
1. Aer Lingus AerClub
2. Air France/KLM Flying Blue
3. British Airways Executive Club
4. Emirates Skywards
5. Iberia Plus
6. JetBlue TrueBlue
7. Singapore Airlines KrisFlyer
8. Southwest Airlines Rapid Rewards
9. United MileagePlus
10. Virgin Atlantic Flying Club

Hotels:
1. Hyatt Gold Passport
2. IHG Rewards Club
3. Marriott Bonvoy
4. World of Hyatt

Transferring Ultimate Rewards points to these partners can often provide significant value, especially if you’re looking to book premium cabin flights or luxury hotel stays. The transfer ratios are generally 1:1, meaning 1 Ultimate Rewards point equals 1 mile or point in the partner program. However, it’s essential to check the individual transfer ratios and redemption options for each partner, as they may vary.

Additionally, remember that once you transfer points to a partner program, you can’t transfer them back to Ultimate Rewards, so it’s important to consider your travel plans carefully before making a transfer. Chase Ultimate Rewards provides a variety of options for maximizing the value of your points, whether it’s booking travel through the Chase travel portal, transferring points to partners, or redeeming them for cash back or statement credits.

Beware of the 5/24 Rule

The Chase 5/24 rule is a guideline used by Chase when considering applications for certain credit cards. It’s an informal policy that affects individuals who have opened five or more credit card accounts across all banks in the past 24 months. Here’s how it works:

1. Five or More Accounts: If you have opened five or more credit card accounts (from any issuer, not just Chase) in the past 24 months, Chase is more likely to deny your application for certain Chase credit cards.

2. Accounts Included: The 5/24 rule typically includes all credit card accounts, including those from other banks and issuers, not just Chase. This means that even if you’ve opened five or more cards with other banks, Chase may still consider you ineligible for certain cards.

3. Impacted Chase Cards: The 5/24 rule primarily affects applications for Chase’s most popular rewards credit cards, such as the Chase Sapphire Preferred, Chase Sapphire Reserve, and Chase Freedom series. It’s less likely to impact co-branded cards (e.g., Chase United Explorer Card), business cards, or other less-popular cards.

4. Business Cards and Authorized Users: Business credit cards and authorized user accounts typically do not count towards the 5/24 limit. So, if you’ve opened business cards or been added as an authorized user, those accounts won’t be included in the count when Chase evaluates your application.

5. Considerations: If you’re interested in applying for a Chase credit card affected by the 5/24 rule, it’s generally advisable to prioritize those applications if you’re close to or over the 5/24 limit. Additionally, keep in mind other factors that Chase considers, such as credit score, income, and existing banking relationship with Chase.

Understanding the 5/24 rule can help you strategize your credit card applications, especially if you’re interested in Chase’s more sought-after rewards cards.

Potential Drawbacks to Consider

1. Annual Fees: Many Chase cards that offer significant rewards and benefits come with annual fees. While the benefits often outweigh the fees for frequent travelers, it’s essential to consider whether the annual fee aligns with your spending habits and the value you’ll get from the card’s perks.

2. Complexity of Redemption Options: While Chase Ultimate Rewards points offer flexibility in redemption options, the variety of choices can be overwhelming for some users. Navigating transfer partners, redemption rates, and booking through the Chase Ultimate Rewards portal may require some effort to maximize value.

3. Blackout Dates and Limited Availability: When booking travel through the Chase Ultimate Rewards portal, you may encounter blackout dates or limited availability for flights, hotels, or other travel experiences. This can restrict your options, especially during peak travel times.

4. Points Devaluation: Like any rewards program, there’s always a risk of points devaluation. The value of your points could decrease over time due to changes in redemption rates, transfer ratios, or other program adjustments made by Chase or its partners.

5. Credit Score Impact: Applying for multiple credit cards to maximize rewards can potentially impact your credit score, particularly if you open several new accounts within a short period. This could affect your ability to qualify for loans or other credit products in the future.

6. Foreign Transaction Fees: Some Chase cards charge foreign transaction fees, typically around 3% of each transaction, when you use your card abroad. If you frequently travel internationally, these fees can add up and offset the value of your rewards.

7. Subject to Application Rules: Chase’s application rules, such as the 5/24 rule, may restrict your ability to open certain Chase credit cards if you’ve opened too many accounts in the past 24 months, limiting your options for earning points.

Despite these potential drawbacks, many individuals find Chase credit cards to be valuable tools for earning points and enjoying travel benefits. It’s essential to assess your spending habits, travel preferences, and financial goals to determine whether Chase credit cards align with your needs and if the benefits outweigh any potential downsides.

When deciding between Chase and American Express credit cards, consider factors such as your spending habits, travel preferences, and the specific benefits and rewards offered by each card. Additionally, think about whether you prefer the flexibility of Chase Ultimate Rewards or the perks and offers provided by American Express. Ultimately, the best choice depends on your individual needs and preferences.

Again, information accurate as of March 2024