How Chase Ultimate Rewards Actually Work

If you’re new to earning credit card rewards, you may not have a complete understanding of the ins and outs of rewards points. Today, we’re going to focus on the ins and outs of the Chase Ultimate Rewards points rewards program. Here are the major rules you need to understand to make sure you use your points in the best way possible and to avoid letting your points expire.

How to Earn Chase Ultimate Rewards Points

Not all Chase credit cards earn Ultimate Reward points. If you want to earn Ultimate Rewards points, you’ll need to use one of the following credit cards:

In addition to earning points on your everyday purchases, you can earn a sign up bonus on most of these credit cards if you meet the requirements. You can also earn Ultimate Rewards points by shopping through the Chase online shopping portal.

How Chase Ultimate Rewards Points Expire

Technically, Chase Ultimate Rewards points don’t expire as long as you have a credit card open that earns Chase Ultimate Rewards points. Chase also notes you’ll lose your points if your account is closed due to “program misuse, fraudulent activities, failure to pay, bankruptcy, or other reasons described in the terms of the Rewards Program Agreement.”  The problem comes when you close your last card that earns Chase Ultimate Rewards points. If you still have points remaining, you’ll lose the points if you don’t use them. Rather than give your points away, consider redeeming your points using the redemption options we’ll cover in just a little bit.

If you’re just closing a Chase card you no longer want but still have other Ultimate Rewards earning cards in your household or business, you can transfer your Ultimate Rewards points from one card to another. In order for the transfer to be legitimate, you need to transfer the points to yourself, a household member, or a business co-owner. Otherwise, Chase may think you’re trying to sell your points, which is against the terms and conditions.

You Can Transfer Chase Ultimate Rewards Points Between Cards For Maximum Value

Don’t only consider transferring points because you’re closing a card and want to transfer points to avoid losing them. In fact, transferring points from some Ultimate Rewards earning credit cards to premium Ultimate Rewards earning credit cards can increase your redemption value.

For instance, points redeemed for travel through the Chase Ultimate Rewards travel portal are worth 1.5 cents each if you redeem them through a Chase Sapphire Reserve card or 1.25 cents each if you redeem them through a Chase Sapphire Preferred card or the Ink Business Preferred Credit Card. If you’re going to book travel using the Ultimate Rewards portal, you should definitely transfer points from cards like the Chase Freedom to your premium account before booking travel to get maximum value.

You Can Transfer Points to Travel Partners

The same premium credit cards mentioned above offer yet another option to redeem Ultimate Rewards points. Rather than book travel through the Ultimate Rewards portal, you can transfer Ultimate Rewards points to certain travel partner rewards programs at a 1 point to 1 point ratio. Here are the current travel programs you can transfer points to:

  • Aer Lingus AerClub
  • British Airways Executive Club
  • Flying Blue AIR FRANCE KLM
  • Iberia Plus
  • Korean Air SKYPASS
  • Singapore Airlines KrisFlyer
  • Southwest Airlines Rapid Rewards®
  • United MileagePlus®
  • Virgin Atlantic Flying Club
  • IHG® Rewards Club
  • Marriott Rewards®
  • The Ritz-Carlton Rewards®
  • World of Hyatt®

Keep in mind, sometimes you’ll get a better value by booking through the Ultimate Rewards travel portal and other times you can find better redemptions through the individual rewards program. Unfortunately, once you transfer points out of Ultimate Rewards, you can’t transfer them back. Make sure you want to transfer points before you pull the trigger.

Compare Chase cards to see which is best for you.

You Can Cash Out Points If You Have No Other Use for Them

Finally, if you don’t have a premium Ultimate Rewards credit card, you can always redeem your points for cash at a value of a penny per point. If you’re going to close a card that still has a remaining points balance, make sure you cash out any points you have remaining so you don’t give them back to Chase.

Chase Ultimate Rewards Points Are Amazing Once You Understand How to Use Them

Ultimate Rewards points are some of the most valuable credit card rewards points you can earn due to the great flexibility you have to redeem them. If you’re big into travel rewards, you can explore the various points transfer partners to find insane values on a value per point basis.

That said, you can still get great value for your points by using the Chase Ultimate Rewards travel portal, too. Just make sure you use your points on the card that gives you the highest value per point for the cards you have. Finally, never let your points expire by closing a card with a points balance. Cash them out.

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How Chase Ultimate Rewards Points Actually Work

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