Hey there, it's Ernest from Trip Astute. In this video, we'll be talking about the
Chase Ultimate Rewards program.
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The Chase Ultimate Rewards program is one of the most popular flexible point currencies out there.
By flexible point program, I mean the points can be used for different things, whether it be hotels or
flights, or even sometimes rental cars. These differ from the cash back
programs which allow you to redeem cash back and apply them toward travel
expenses. For simplicity sake, there are basically four major flexible point
programs. They include the Chase Ultimate Rewards, the American Express Membership
Rewards, the Citibank Thank You program, and the Starwood Preferred Guest Rewards.
I'll do a separate video on the cash back cards as well. They're definitely a
valuable and simple way to earn free travel. To be honest, I've used all these
reward programs over the years, but to me, the one that really stands out is a
Chase Ultimate Rewards program. Not to say that the other programs aren't
valuable or effective. I just find that the Chase cards seem to best meet my
needs, and here's why. Number one is bonus categories that match my daily spend.
With my Chase cards, I seem to be able to match up the bonus reward categories
with what I'm spending in my daily life. Number two:
multiple cards that pull into the same program. Since multiple cards are earning
the same points, I seem to earn them much quicker. And lastly, number three: travel
partners that seem to match my needs. Chase has partnered with some of the
biggest names in travel such as United, Hyatt, Southwest, IHG, Marriott,
Ritz Carlton; to name a few. This definitely gives me a lot of
options when I want to book travel. When you look at the Chase website, you'll
notice that there's two types of cards listed.
There's the travel reward cards and the cash back cards. Cards like the Chase
Freedom or the Freedom Unlimited are considered to be cash back. However, there
is a way to make these cards eligible to earn travel points as well. Basically, you
just need to have one premium account active, which then allows the other cards
to also earn Ultimate Rewards points. This also allows you to pull the points into
one bucket. Examples of premium Chase travel cards are the Chase Sapphire
Reserve card and the Chase Sapphire Preferred; as well as on the business
side, the Chase Ink Preferred card. For example, I carry the Chase Sapphire
Reserve card which has a pretty hefty annual fee, but I find that it really
meets my needs in terms of my daily spend, especially when it comes to dining
out and travel. Since it's one of the premium Chase travel cards, it basically
allows me to unlock the point earning feature on my Chase freedom and Chase
Freedom Unlimited cards. Also, I have a Chase Ink Cash card, which is a business
card that's also classified as cash back. However, just because I have the Chase
Sapphire Reserve card, it allows me to now earn Ultimate Rewards points on that
account as well. I essentially have four separate cards that are earning Ultimate
Rewards points. What I love about this setup is that it allows me to really
take advantage of multiple bonus categories. In my case, the Chase Sapphire
Reserve earns three points on travel and dining, the Ink Cash card earns five
points on office supplies, and also telephone and Internet charges.
I also earn two points on dining and gas charges. My Freedom Unlimited card has a
1.5 point bonus on all charges. It's basically a flat bonus card. And my
Chase Freedom earns 5 points on rotating categories. So every quarter,
we get a different bonus category. It could be anything from gas to groceries to
drugstores, home improvement, Amazon. It's a really versatile card, and it's really a
great way to maximize daily spend in those categories. In terms of redeeming
your Chase Ultimate Rewards points, there are a ton of ways to do it.
However, for the best value, I suggest using one of these two ways. Number one:
transfer to a travel partner. You can transfer points to one of Chase's travel
partners, which includes companies like Hyatt, United, Marriott, Southwest. Once
the points have transferred over, you can book the travel directly with that
vendor. The second way to redeem points is through the Ultimate Rewards travel
portal. Once you find the flight or hotel that you want a book, you can redeem at a
fixed rate. The fixed rate is going to depend on whether you have a Reserve
card or not. It should range between 1.25 or 1.5 cents per point. With this method,
you're essentially buying your ticket or booking your hotel, and then reimbursing
yourself with the points. Keep in mind that you'll also earn mileage or loyalty
points for using this method, and that's because you're basically buying the
ticket or hotel stay. It's difficult to put an exact number on the value of each
point. One of my favorite bloggers, The Points Guy, does a monthly valuation of
all the major point programs out there. As of April 2017, he rates the Chase
Ultimate Reward Program to have a point value of 2.2 cents per point.
Redemption values can definitely vary. I'm usually able to get anywhere from
1.5 to 2 cents per point. However, there is flexibility which is
hard to quantify into an exact amount, but is definitely valuable. Before you
apply for these cards, here are some things to keep in mind. One is that Chase
has a 5/24 rule, which means that they won't approve you if you've had five
credit card application within the last 24 months. This includes
credit cards from other banks as well, not just from Chase. There are some
exceptions to this rule, but if you applied for five or more credit cards in
the last two years, you may want to hold off on applying for any Chase cards. The
last point I'll make is that even though I definitely prefer the Chase Ultimate
Rewards program, it doesn't mean that I'm not also collecting points from other
programs. If you talk to a lot of point collectors, they'll tell you that
diversity is definitely key. Having a diverse set of points allows you to book
travel wherever you go. I can't tell you how many times I wanted to book a Hyatt
hotel, only to find out that Starwood has all the major resorts in that area. It
definitely pays to diversify. It gives you that extra flexibility when you
travel. In future videos, I'll be diving deeper into individual cards and the
benefits of each one. Also, I'll be covering some tips on how to apply for
cards. There are definitely some strategies and tricks that people use
when applying for cards. As always, if you enjoyed this video, please like it below.
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Until next time, travel safe and travel smart.