Chase bonus rewards 101
Quick insights
- Chase bonus rewards, called Chase Ultimate Rewards® points, can help you earn rewards from everyday purchases.
- Chase Ultimate Rewards points offer versatile redemption options, from travel to gift cards.
- Innovative features like category rotation and mobile pay bonuses may cater to diverse spending habits.
Ready to turn your spending into earning? Let's dive into the world of Chase credit card rewards—where your everyday purchases can turn into travel, gadgets and more.
What are credit card rewards?
Credit card rewards are incentives offered by credit card companies to encourage spending and loyalty among cardholders. These rewards can come in various forms such as cash back, points or miles. Different cards offer different types of rewards, such as flat-rate cash back, tiered rewards or rotating category bonuses, each designed to suit various consumer spending patterns. Let’s take a closer look at the different types of credit card rewards:
Flat-rate cash back
This reward type offers a consistent percentage of cash back on all purchases, regardless of the category. It can be a helpful option for consumers who prefer simplicity and consistent savings on their spending.
Tiered rewards
Tiered rewards systems provide varying cash back or points percentages based on the spending category, such as higher rates for groceries or gas and lower rates for other purchases. This structure may benefit users who spend heavily in specific categories.
Rotating category bonuses
With rotating category bonuses, credit cards offer higher cash back or points on different categories that change periodically, usually quarterly. Consumers usually need to activate these categories to help maximize rewards with the featured categories.
Partner/travel rewards
These rewards are usually earned through spending with specific partners or on travel-related expenses. They often provide better value when redeemed for travel through the card issuer’s portal or through the partner’s portal.
Introductory bonuses
Many credit cards offer sign-up bonuses or welcome offers, which reward new cardmembers with a number of points, miles or cash back if they meet a minimum spending requirement within the first few months of opening the account.
Purchase-specific bonuses
Some cards offer additional rewards for specific types of purchases, such as online shopping, dining or entertainment. These bonuses can be over and above the standard reward rate and may be permanent features of the card or limited-time offers.
Referral bonuses
Cardmembers can earn bonus points or cash back by referring friends or family members who then apply for and are approved for the card.
Loyalty program enhancements
Cards affiliated with specific brands or loyalty programs may offer enhanced rewards for continuing to use the card over time, such as annual bonus points, status upgrades or other perks.
What are Chase credit card rewards?
Chase credit card rewards are called Chase Ultimate Rewards. These points can be redeemed for a wide array of options, including travel, gift cards, cash back and shopping. This versatility can make it appealing to a broad range of consumers, from frequent travelers to those who prefer simple cash back. You can redeem Chase Ultimate Rewards points on the Chase mobile app or the Chase website.
How to earn and use Chase Ultimate Rewards points
Now that we have a clearer idea of what Chase Ultimate Rewards points are, let’s take a quick look how to earn and use them:
Earning points
Chase Ultimate Rewards points can be accumulated through everyday spending and may include higher earn rates in categories such as dining and travel. Additionally, shopping through the Chase shopping portal, called Shop Through Chase®, often provides bonus points per dollar spent. Promotional offers throughout the year can boost your points balance by offering additional points on new categories or increased rewards for certain activities.
Using points
Once you've earned Chase Ultimate Rewards points, you have several options for using them. Points can be redeemed for travel through the Chase Travel portal, where they can be worth more when used with certain Chase cards. They can also be redeemed for gift cards, used for cash back directly into a bank account or applied to purchases on partner retailers.
Do Chase credit cards ever have a transfer bonus?
The Chase Ultimate Rewards program is also known for its point transfer feature. Points can usually be transferred at a 1:1 ratio to several leading airline and hotel loyalty programs, often enhancing the value of each point when used for booking international flights or luxury hotel stays.
Chase credit cards occasionally offer transfer bonuses that allow cardmembers to receive more than the standard 1:1 ratio on points transfers. For example, a 10% transfer bonus would mean that transferring 1,000 Chase Ultimate Rewards points could yield 1,100 points in the partner’s program. These bonuses are typically offered for a limited time and may target specific partners. Keeping an eye on your email notifications from Chase and regularly checking the Ultimate Rewards portal will help you catch these opportunities to maximize the value of your points.
Additional benefits of using Chase cards
Beyond earning rewards, Chase credit cards come with several additional benefits that enhance their value. Cardholders enjoy extended warranty protection, which adds additional warranty time on eligible purchases made with the card, and purchase protection, which covers new purchases against damage or theft for a short period after purchase.
Many Chase cards also offer trip cancellation and interruption insurance, providing financial protection if your travel plans are disrupted due to unforeseen circumstances. Additionally, some cards include airport lounge access and special benefits at partner hotels.
The bottom line
Chase credit card rewards offer a platform for earning and redeeming points across a wide spectrum of purchases. By understanding the nuances of each Chase card and using strategies tailored to your spending habits, you can maximize your rewards and enjoy a range of benefits that enhance your financial flexibility and lifestyle.
