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Here at TPG, we value Chase Ultimate Rewards points at , thanks to the program's . In the past, I've transferred points instantly to United at a 1:1 ratio, then booked for 110,000 miles — a flight that would have easily cost over $10,000. United has since , so the new redemption amount , but it remains a (relatively) fantastic value.
Similarly, I've transferred 30,000 points instantly to Hyatt, for a free stay at the , when the cash rate exceeded $1,000 per night. In both cases, my redemption values far exceeded of Ultimate Rewards points.
More recently, however, I've , including flights and experiences — both at a far lower redemption rate of 1.5 cents per point. With healthy frequent flyer and hotel program balances, I found those redemptions to be a good use of my Ultimate Rewards points. That hasn't been an option lately, since I haven't been traveling — which is why I'm especially excited about Chase's latest redemption option, Pay Yourself Back.
Statement credit options
Chase has long offered the option to redeem points for a statement credit — simply log into your Ultimate Rewards account, hit the drop-down menu and select "Cash Back." You'll be presented with an option to enter the amount you'd like to redeem, and where you'd like your rewards deposited. All cash-back redemptions are fixed at 1 cent per point, which is only half of TPG's valuation for Ultimate Rewards.
Even so, Chase's traditional cash-back option is more generous than what you can expect from some other issuers. Here's how it breaks down for some of the most popular programs and cards:
What is Pay Yourself Back?
As of May 31, there's a far better option for customers with both the and . Branded as "Pay Yourself Back," Chase's new program lets you use your Ultimate Rewards points to offset certain purchases at a much more favorable rate.
While the program may be adjusted to include additional cards and new categories in the future, through Sept. 30, 2020 customers can redeem points at 1.5 cents apiece while customers can redeem Ultimate Rewards at 1.25 cents each to offset purchases made at grocery stores, home improvement stores and dining establishments, including take-out and delivery services.
So rather than receiving a statement credit of $100 when redeeming 10,000 points, a customer would receive a credit of $150, for the same redemption amount, when offsetting purchases in the categories outlined above. This is the same redemption rate offered on redemptions.
Related:
Requesting a credit
As of May 31, customers are able to log into their Ultimate Rewards accounts, select the Pay Yourself Back option and offset any eligible transaction within the previous 90 days, including those made before the program's launch.
Simply log into your Ultimate Rewards account via mobile app or desktop and select the "Pay Yourself Back" option in the sidebar.
Next, you'll see a list of eligible restaurant and grocery purchases you can redeem points for. Points can be redeemed for purchases as far back as 90 days, at a rate of 1.5 cents each for cardholders and 1.25 cents if you have the . The example below are based on redemption rates for a Sapphire Preferred Card.
Simply check off the purchases you want to redeem and proceed to the next page.
You can choose to offset the full purchase amount, assuming you have enough points to cover it, or you can redeem a smaller amount, if you prefer.
From there, you can confirm the redemption value and amount, and choose to complete the transaction.
And that's it! Your statement credit should post within three business days.
Boosting your return
While some purchases earn 1 point per dollar spent, it's easy to do far better than that. And since you can , you'll want to mix up your spending to earn more points, then redeem for up to 1.5 cents in statement credits apiece (if you have ).
Say in a given month I spent $200 on Lyft rides with my for a total of 2,000 points; $500 on dining for a total of 1,500 points; $100 on internet or cable with my for 500 points; and $500 on all other purchases with my , for a total of 750 points.
At the end of the month, I'll have earned 4,750 points, which I can then redeem for $71.25 toward purchases made at grocery stores, home improvement stores and dining establishments. In total, I'll have earned a return worth almost 5.5%, based on $1,300 in monthly spend — far higher than what I'd be able to achieve with any single .
Higher-value redemptions
As I mentioned, TPG values Chase Ultimate Rewards points at 2 cents apiece, thanks specifically to the program's valuable 1:1 transfer partners, including a variety of airlines and hotels. The current list includes:
Personally, of the list above, my preferred airline transfer partner has been United Airlines, due to the carrier's simple online booking platform, decent redemption rates — — and the fact that .
For example, you can book a one-way flight in for 121,000 miles, compared with nearly $15,000 if paying cash for the same flight — a redemption value of over 12 cents per point.
Recently, United , , so be sure to check pricing and availability before you initiate a transfer.
Meanwhile, on the hotel front, I've had great success redeeming awards through Hyatt. Two of my personal favorites include the Park Hyatt Paris Vendome and the — both are priced at 30,000 points per night, with cash rates that often exceed $1,000, netting me well over 3 cents per point in value.
There are plenty other high-value redemption options to choose from — .
Bottom line
Does it make sense to redeem Chase Ultimate Rewards points at 1.5 cents apiece, 25% shy of ? Ultimately, that decision comes down to how you plan to use your points, how many you currently have with airline and hotel programs, and whether or not you'd benefit significantly from statement credits.
If you're hoping to use your points for a premium-cabin trip in the not-too-distant future, it could certainly make sense to hold onto them and transfer to partners down the line. On the other hand, if you don't plan to travel soon, or , redeeming points at a slightly lower rate is surely preferable to or cutting back on essential spending.
Featured photo by The Points Guy.
Here at TPG, we value Chase Ultimate Rewards points at , thanks to the program's . In the past, I've transferred points instantly to United at a 1:1 ratio, then booked for 110,000 miles — a flight that would have easily cost over $10,000. United has since , so the new redemption amount , but it remains a (relatively) fantastic value.
Similarly, I've transferred 30,000 points instantly to Hyatt, for a free stay at the , when the cash rate exceeded $1,000 per night. In both cases, my redemption values far exceeded of Ultimate Rewards points.
More recently, however, I've , including flights and experiences — both at a far lower redemption rate of 1.5 cents per point. With healthy frequent flyer and hotel program balances, I found those redemptions to be a good use of my Ultimate Rewards points. That hasn't been an option lately, since I haven't been traveling — which is why I'm especially excited about Chase's latest redemption option, Pay Yourself Back.
Statement credit options
Chase has long offered the option to redeem points for a statement credit — simply log into your Ultimate Rewards account, hit the drop-down menu and select "Cash Back." You'll be presented with an option to enter the amount you'd like to redeem, and where you'd like your rewards deposited. All cash-back redemptions are fixed at 1 cent per point, which is only half of TPG's valuation for Ultimate Rewards.
Even so, Chase's traditional cash-back option is more generous than what you can expect from some other issuers. Here's how it breaks down for some of the most popular programs and cards:
What is Pay Yourself Back?
As of May 31, there's a far better option for customers with both the and . Branded as "Pay Yourself Back," Chase's new program lets you use your Ultimate Rewards points to offset certain purchases at a much more favorable rate.
While the program may be adjusted to include additional cards and new categories in the future, through Sept. 30, 2020 customers can redeem points at 1.5 cents apiece while customers can redeem Ultimate Rewards at 1.25 cents each to offset purchases made at grocery stores, home improvement stores and dining establishments, including take-out and delivery services.
So rather than receiving a statement credit of $100 when redeeming 10,000 points, a customer would receive a credit of $150, for the same redemption amount, when offsetting purchases in the categories outlined above. This is the same redemption rate offered on redemptions.
Related:
Requesting a credit
As of May 31, customers are able to log into their Ultimate Rewards accounts, select the Pay Yourself Back option and offset any eligible transaction within the previous 90 days, including those made before the program's launch.
Simply log into your Ultimate Rewards account via mobile app or desktop and select the "Pay Yourself Back" option in the sidebar.
Next, you'll see a list of eligible restaurant and grocery purchases you can redeem points for. Points can be redeemed for purchases as far back as 90 days, at a rate of 1.5 cents each for cardholders and 1.25 cents if you have the . The example below are based on redemption rates for a Sapphire Preferred Card.
Simply check off the purchases you want to redeem and proceed to the next page.
You can choose to offset the full purchase amount, assuming you have enough points to cover it, or you can redeem a smaller amount, if you prefer.
From there, you can confirm the redemption value and amount, and choose to complete the transaction.
And that's it! Your statement credit should post within three business days.
Boosting your return
While some purchases earn 1 point per dollar spent, it's easy to do far better than that. And since you can , you'll want to mix up your spending to earn more points, then redeem for up to 1.5 cents in statement credits apiece (if you have ).
Say in a given month I spent $200 on Lyft rides with my for a total of 2,000 points; $500 on dining for a total of 1,500 points; $100 on internet or cable with my for 500 points; and $500 on all other purchases with my , for a total of 750 points.
At the end of the month, I'll have earned 4,750 points, which I can then redeem for $71.25 toward purchases made at grocery stores, home improvement stores and dining establishments. In total, I'll have earned a return worth almost 5.5%, based on $1,300 in monthly spend — far higher than what I'd be able to achieve with any single .
Higher-value redemptions
As I mentioned, TPG values Chase Ultimate Rewards points at 2 cents apiece, thanks specifically to the program's valuable 1:1 transfer partners, including a variety of airlines and hotels. The current list includes:
Personally, of the list above, my preferred airline transfer partner has been United Airlines, due to the carrier's simple online booking platform, decent redemption rates — — and the fact that .
For example, you can book a one-way flight in for 121,000 miles, compared with nearly $15,000 if paying cash for the same flight — a redemption value of over 12 cents per point.
Recently, United , , so be sure to check pricing and availability before you initiate a transfer.
Meanwhile, on the hotel front, I've had great success redeeming awards through Hyatt. Two of my personal favorites include the Park Hyatt Paris Vendome and the — both are priced at 30,000 points per night, with cash rates that often exceed $1,000, netting me well over 3 cents per point in value.
There are plenty other high-value redemption options to choose from — .
Bottom line
Does it make sense to redeem Chase Ultimate Rewards points at 1.5 cents apiece, 25% shy of ? Ultimately, that decision comes down to how you plan to use your points, how many you currently have with airline and hotel programs, and whether or not you'd benefit significantly from statement credits.
If you're hoping to use your points for a premium-cabin trip in the not-too-distant future, it could certainly make sense to hold onto them and transfer to partners down the line. On the other hand, if you don't plan to travel soon, or , redeeming points at a slightly lower rate is surely preferable to or cutting back on essential spending.
Featured photo by The Points Guy.