The best Chase cash back credit card is the Chase Freedom Unlimited® card because it offers 1.5 - 5% cash back on purchases and gives new cardholders a $200 bonus for spending $500 in the first 3 months. The Chase Freedom Unlimited card also has a $0 annual fee.
It’s important to note that, technically, Chase does not offer any cash back credit cards. Chase Freedom Unlimited, Chase Freedom Flex, and the rest actually reward cardholders with points for every purchase. But Chase points are worth 1 cent each when redeemed for statement credits. So when Chase says 5% cash back, for example, they really mean 5 points per $1 that are worth 5% cash back.
Yes, Chase does have cash back credit cards. The best Chase cash back credit card is the Chase Freedom Unlimited®, which gives 1.5 - 5% cash back on purchases and has an annual fee of $0. The Chase Freedom Unlimited also offers an initial bonus of $200 for spending $500 in the first 3 months after account opening.
Most people will benefit more from Freedom Unlimited’s higher base cash back rate, but Chase also offers the Freedom Flex card, which gives 5% cash back on the first $1,500 spent per quarter in categories that change. That could be worthwhile if you plan to make purchases in whatever bonus categories Chase chooses for the quarter. The Freedom Flex card’s initial bonus, financing terms and annual fee are all identical to Freedom Unlimited’s.
The easiest way to redeem Chase rewards is online, but you can also do that over the phone at (800) 432-3117. You can redeem Chase rewards for gift cards, travel and cash back. Chase points are generally worth 1 cent each regardless of what they’re redeemed for. If you’re redeeming for cash, you can also go to a Chase branch. You’ll get your money as a statement credit or as an electronic deposit to the bank account of your choice.… read full answer
Here’s how to redeem Chase rewards:
Online: For online redemption, log in to your Chase account and go to the Chase rewards portal. From there, you’ll be able to book trips, buy gift cards, request statement credits, etc.
By phone: To redeem by phone, call Chase customer service at (800) 432-3117. Enter your account number to connect to a customer service representative. State that you want to redeem rewards.
At a Chase branch: You can request a statement credit or bank account deposit in exchange for your Chase rewards at any Chase branch. You just need your account number and a picture ID. But you won’t actually get cold hard cash on the spot.
Different Chase cards have different rewards programs. One card might give you the most rewards for travel, another for everyday purchases. So, you’ll want to pick a card with a reward structure that matches your lifestyle.
For all Chase cards in the Ultimate Rewards program, except Chase Freedom Flex℠ and Chase Freedom Unlimited®, you can also transfer Chase points to 13 airline and hotel loyalty programs at a 1:1 ratio. Whether or not that’s a good deal depends on the value of the loyalty program’s miles. Chase travel partners include United, British Airways, Southwest, IHG, Marriott and others.
Cash back is a type of credit card rewards. Cash back credit card rewards can usually be redeemed for statement credits, bank account deposits or paper checks, depending on the credit card company.
Cash back credit cards make for a great addition to anyone’s wallet because they provide a straightforward earning and redemption mechanism in a currency that cannot be … read full answerdevalued by a credit card company. The best cash back credit cards tend to be those that keep things simple by providing attractive earning rates across all purchases.
The difference between cash back and points is that the former is the most versatile type of credit card rewards, as it can be redeemed for anything, and there’s never any doubt about how much it’s worth. Points, on the other hand, have a value set by the credit card company and tend to be worth the most when redeemed for travel. Credit card companies won’t always clearly disclose points values, and those values can change over time. It’s possible that points could be worth 1 cent apiece one day and 0.8 cents each the next.… read full answer
You can spend points for many different things. Usually, you can trade them for travel, gift cards, unique experiences, charitable donations or even cash. There are no restrictions on what you can use cash for. You can typically redeem cash back for a statement credit, paper check, or direct deposit to a bank account. One thing credit card shoppers should watch out for are cards advertised as offering cash back that really provide points. For example, the Chase Freedom Flex℠ offers “5% cash back” in certain bonus categories. But what it actually gives is 5 Chase Ultimate Rewards points per $1, which cardholders can then trade for cash back at a rate of 1 cent each.
Earning rate: Usually at least 1% cash back or 1 point per $1 spent.
Devaluation: Points can be devalued by the issuer, while cash back can’t.
Redemption options: Statement credit, check or deposit for cash. Travel, merchandise, gift cards, cash and more for points.
When it’s the best choice: Points for frequent travelers. Cash back for everyone else.
Let’s take a look at two high-profile cards in a battle of cash back vs. points.
Citi Double Cash Card tops the cash back offerings with 2% cash back on all purchases and an introductory APR of 0% for 18 months on balance transfers, with a 3% (min $5) balance transfer fee. It also chases a $0 annual fee and requires good credit to get.
But if you’re a frequent traveler, Chase Sapphire Preferred is a more attractive option. It gives 5 points per $1 spent on travel purchased through Chase, 2 points per $1 on all other travel purchases, 3 points per $1 on dining and online grocery purchases, 3 points per $1 on select streaming services, and 1 point per $1 on all other purchases. It has an initial bonus of 60,000 points for spending $4,000 in the first 3 months. This card’s points are worth 1 cent each toward cash back or gift cards or 1.25 cents each toward travel. There’s a $95 annual fee and the card requires good credit.
For both cash back and points cards, you can expect to lose your rewards if your account closes for any reason. Most cards don’t let your rewards expire over time. But Citi Double Cash Card’s cash back expires if you don’t use your card for 12 months. And on points cards alone, your points can be devalued if the issuer decides to charge more points for its rewards. So, frequent redemption is essential.
So, the bottom line is that frequent travelers should check out points cards. Otherwise, cash is king.
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