Of all the credit card rewards programs on the market, Chase Ultimate Rewards are among the best and most popular.
It has a long list of airline and hotel partners where you can transfer your points. It lets you redeem points as cash through the Chase travel portal. And it offers several credit cards with large sign-up bonuses, high rewards rates, and useful travel benefits.
To get the most out of this rewards program, you need to understand how it works. The value you get for your points depends heavily on how you use them, because some redemptions give more than double or triple the value of others.
This guide will teach you all about the Ultimate Rewards program. By the end, you’ll know exactly how to redeem your points to book the travel you want.
How does the Ultimate Rewards program work?
The Ultimate Rewards program allows you to earn points that you can then redeem for rewards. Travel is the most popular and valuable reward option.
You’ll have access to the program as long as you have at least one active Ultimate Rewards credit card. Every time you earn a sign-up bonus with an Ultimate Rewards card or use one for a purchase, you’ll earn more points.
Which credit cards earn Ultimate Rewards points?
Chase currently has three travel credit cards that earn Ultimate Rewards Points:
Earning more points with Chase companion cards
There’s a way you can use Chase cash back cards to collect more Ultimate Rewards points.
If you have both a Chase cash back card and a Chase travel card, you can transfer your cash back to the travel card at a rate of 100 points per $1.
Because Chase’s cash back credit cards offer high earning rates in areas that its travel cards don’t, they work well as companion cards to help you earn more travel points. You simply use the cash back card for the purchases that earn you more, and then transfer that cash back to your travel card.
There are several options for Chase companion cards:
How to redeem Ultimate Rewards points
Chase offers quite a few ways to redeem Ultimate Rewards points. The options that get you the most value are:
- Transfers to travel partners
- Travel purchases through the Ultimate Rewards travel portal
- Statement credits towards everyday purchases with Pay Yourself Back*
- Chase Dining program redemptions*
*Through April 30, 2021
Here’s a closer look at these and other redemption methods.
1. Transfers to travel partners
You can transfer your points to the loyalty programs of airlines and hotels that partner with Chase. Transfers to most partners process instantaneously, and all transfers are final. The transfer ratio is 1:1 with every partner. After you transfer points, you can use them with the partner to book airfare or a hotel stay.
This redemption method offers the most potential value. There is, however, a learning curve to finding the best transfer options for the travel you want to book.
These are the current loyalty programs where you can transfer your Ultimate Rewards points:
Airlines: Aer Lingus AerClub, British Airways Executive Club, Emirates Skywards, Flying Blue Air France KLM, Iberia Plus, JetBlue TrueBlue, Singapore Airlines KrisFlyer, Southwest Airlines Rapid Rewards, United MileagePlus, Virgin Atlantic Flying Club
Hotels: IHG Rewards Club, Marriott Bonvoy, World of Hyatt
Pro tip: Don’t forget about airline partnerships and alliances. When you have points with one airline, you can also use those points to book flights with any of that airline’s partners and fellow airline alliance members.
The biggest airline alliances are SkyTeam, Star Alliance, and Oneworld. Chase has transfer partners in all three. So even though there are 10 frequent flyer programs in the Ultimate Rewards program, you could use points to book flights with more than 60 airlines thanks to partner bookings.
Those partners include American Airlines and Delta Air Lines, the other two major domestic carriers that aren’t directly partnered with Chase. You won’t find many airline credit cards that give you more flight-booking options.
2. Travel purchases through the Ultimate Rewards travel portal
With this method, you search for travel on the Ultimate Rewards travel portal and redeem your points toward the cash price of the purchase. When you redeem your points this way, their value depends on which credit card you have. Here are the current point values by card:
- Chase Sapphire Preferred® Card and Chase Ink Business Preferred℠ Credit Card: $0.0125 per point
- Chase Sapphire Reserve®: $0.015 per point
There are a few extra perks with this method. Booking through the Ultimate Rewards travel portal is usually considered a cash purchase by the airline or hotel. That means you can earn points in their own loyalty program. If you had transferred your points to make an award booking, you wouldn’t earn anything.
Your booking will also qualify for any travel insurance and protections your Chase card offers. When you transfer points and make an award booking, your Chase card’s travel protections don’t apply.
It’s also possible to book more types of travel this way. In addition to airlines and hotels, the travel portal also offers car rentals, activities, vacation rentals, and cruises.
3. Chase Dining program redemptions
The Chase Dining program lets you use your points for Sapphire Private Dining series events, takeout, outdoor seating reservations, and more.
Like Pay Yourself Back, you can also get more value from this method through April 30, 2021. Points are worth just as much through Chase Dining as they are for Ultimate Rewards travel purchases until that date.
4. Other redemption methods
You can also redeem Ultimate Rewards points for cash back or gift cards. You’re almost always better off avoiding these methods. You only get $0.01 per point (unless there’s a special gift card offer). Since you can get more value from other redemptions, it makes sense to stick to those.
What are Ultimate Rewards points worth?
An Ultimate Rewards point is worth either $0.0125 or $0.015 per point towards travel, depending on the Chase card you have. You could also get more value if you transfer points to travel partners.
If you transfer your points, there’s a wide range of redemption opportunities available. Some will earn you $0.01 or less. On the other end of the spectrum, you could find redemptions worth more than $0.03 per point.
Earning $0.015 to $0.03 per point is a reasonable expectation for Ultimate Rewards points. That’s a range that you can typically reach if you use your points wisely, but it won’t require you to spend weeks hunting down deals.
Do Ultimate Rewards points expire?
Ultimate Rewards points don’t expire as long as the credit card with the points is open. If the card is closed, any remaining points will be lost. That’s why you should never cancel your credit card without redeeming your unused rewards points first.
You’d also lose your points if Chase decided to close your account. Although credit card companies can close an account at any time, it doesn’t happen often. The most common reasons Chase would cancel your card are if you:
- Don’t make your minimum payment for at least 90 days
- Declare bankruptcy
- Commit fraud, either with your Chase card or with its rewards program
Learn more: Do Chase Ultimate Rewards® Points ever expire?
Can you buy Ultimate Rewards points?
No, you can’t buy Ultimate Rewards points. Chase used to allow cardholders to purchase points, but it discontinued this feature in 2012.
Combining your Chase points onto one credit card
It’s easy to move points from multiple Chase credit cards to just one. All you need to do is log in to your Chase Ultimate Rewards account, open the “Earn / Use” dropdown menu, and click “Combine Points.” From there, just follow the prompts to combine points with the card you want.
If you’re wondering why you’d do this, there are several potential reasons:
- To use your rewards for travel. If you have a Chase cash back card, you can transfer its rewards to a Chase travel card. This turns your cash back into travel points.
- To get more for your points. The Chase Sapphire Reserve® has the best rate ($0.015 per point) with the Ultimate Rewards travel portal, Pay Yourself Back, and Chase Dining. If you have that card, you should move your points onto it before redeeming them through those methods.
- To simplify redemptions. It’s more time-consuming to redeem points when they’re spread across multiple credit cards. You can redeem more points at once by combining them onto a single card.
View more information: https://www.fool.com/the-ascent/credit-cards/articles/definitive-guide-chase-ultimate-rewards-points/