How to Use Your Chase Ultimate Rewards Points to Pay Your Everyday Expenses
As a result of the coronavirus pandemic, saving money has become much more important for many of us. Which is why I thought a post on how to use your Chase Ultimate Rewards points to pay your everyday expenses was appropriate.
Obviously, you can get the most value from your Ultimate Rewards points by transferring them to travel partners such as United Airlines, Southwest Airlines, Hyatt hotels, Marriott hotels and more to travel for free.
However, few of us are traveling right now. And, likely, for the foreseeable future.
So why not use some of the Ultimate Rewards points to offset your everyday expenses. And in turn, put more cash in your bank account.
Ultimate Rewards Points for Everyday Expenses
There are two options for offsetting your everyday expenses with Ultimate Rewards points.
- Turning points into cash back
- Redeeming for gift cards
Both of these options can be found in the Ultimate Rewards section of your Chase.com account.
First, you’ll need to log in to our Chase credit card account via chase.com.
Once at the credit card page, look for Ultimate Rewards box (typically on the side) and click the Redeem rewards link.
If you have multiple Ultimate Rewards earning credit cards, the next page will ask which card’s points you want to access.
After selecting your preferred card, you’ll be taken to the Ultimate Rewards page where you should see a heading, “Turn your points into rewards.” One option is “gift cards,” the other is “get cash back” and the final option is “shop Amazon.”
Let’s take a look at each.
Redeem for Gift Cards
Chase offers a variety of retailer gift cards from which to pick with a redemption rate of 1 cent.
Meaning:
- A $25 gift card will cost 2,500 Ultimate Rewards points.
- A $100 gift card will cost 10,000 Ultimate Rewards points.
- A $250 gift card will cost 25,000 Ultimate Rewards points.
- And so on.
You can sometimes increase the value of redeeming for gift cards when Chase is offering percentage-off deals on select gift cards. Usually the discount is 10%.
Right now the following gift cards can be purchased with a 10% discount.
- Grubhub
- Happy Student
- Happy Rewards
- Express
- Subway
- Wayfair
If you’re not familiar with “Happy” gift cards, specific “Happy” cards can be used at any of the listed retailers on that card (typically 5-6)…making them a multi-use option as long as you have purchases to make at more than one of the linked retailers.
Chase’s listing of regular-priced gift cards runs the gamut from most major restaurant chains to home improvement stores to pet suppliers to grocery stores, even Target and Amazon, to truly fill the role of gift cards to cover most everyday purchases.
True, you’re not getting the absolute best value by using Ultimate Rewards points to purchase gift cards, but if your goal is to cover everyday expenses to keep cash in your pocket, then gift cards are definitely an option.
Points into Cash Back
This option is exactly what it seems. Turn your balance of Ultimate Rewards points into cash.
And there are two ways to make that happen.
- Redeem for a Statement Credit
- Direct Deposit to a Bank Account
You can redeem some, or all, of your Ultimate Rewards points in either case.
The redemption rate is the same as for a regular gift card purchase – 1 cent.
Which means:
If you want to erase a $250 purchase (or $250 worth of purchases) on your credit card statement, you’ll need to redeem 25,000 Ultimate Rewards points.
And, the same is true if you want to turn your Ultimate Rewards points into cash, deposited to your bank account.
A 50,000 Ultimate Rewards points balance would equal $500 in cash which could be direct deposited to your bank account if that’s the option you choose.
To choose either of these options, just select the Get Cash Back option on the main Ultimate Rewards page (next to the Redeem for Gift Cards option). You’ll be take to the “Ready to redeem for cash back?” page where you can select the amount of points you’d like to redeem, and the method (statement credit or bank deposit) you wish to use.
Chase states it will take up to 3 business days for either transaction, but it oftentimes is less.
Amazon
There is a third option, which is using Ultimate Rewards points to shop at Amazon. I would not, however, recommend this option due to its reduced redemption rate of 8/10 of a cent.
You’d receive better value by purchasing Amazon gift cards with your points and using them to make your Amazon purchases.
The only time I would use Ultimate Rewards points on Amazon is when a specific Amazon/Chase credit card deal is offered. Occasionally, we’ll see, and publish, percentage or dollar-off deals for Chase credit card holders who’ve had their Amazon accounts targeted with these savings deals.
A deal for $15 off $50 when at least 1 Ultimate Rewards point is used is an example. Which, obviously, provides significant value for that one Ultimate Rewards point.
There are stipulations associated with these types of deals, though, the foremost of which is only those select Amazon customers who’ve been chosen can take advantage.
So, outside of the Amazon/Chase credit card deals, steer clear of redeeming Ultimate Rewards points on Amazon.
Earning Ultimate Rewards Points
This post is about using your Ultimate Rewards points to help pay your everyday expenses, so I won’t get into the nitty gritty of earning points.
Other than to say, taking full advantage of bonus categories is a large piece of the redemption pie.
If you have a Freedom – or now Freedom Flex – card which earns 5x Ultimate Rewards points per dollar spent in select categories, do your best to max out that spend. We provide suggestions on how to do just that each quarter when new categories are announced.
And with the revamping of the Freedom cards’ lineup, be sure to take advantage of the 3x for dining and drugstore purchases everyday.
Earning more points per dollar spent equates to even more Ultimate Rewards points being available to redeem in whatever way is best for your bottom line.
Wrap Up
Chase Ultimate Rewards points are a valuable currency when redeeming to offset travel expenses.
But, right now, saving money is more important for many of us.
And being able to use accumulated Ultimate Rewards points to offset your everyday expenses is a great way to do just that.
Luckily, Chase allows you to do that in multiple ways.
So if you’re in a position where using points instead of cash is a smart financial move, the options above will help you to make that happen.
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