Chase improves point redemptions for Apple products — but is it a good deal?
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Chase has again expanded your options for redeeming Chase Ultimate Rewards points. It’s not the most thrilling, but any viable new way to redeem rewards is welcome news.
Through Nov. 15, 2020, you can use Chase points at an increased rate of between 1.05 and 1.5 cents each toward Apple products. Previously, you could only use your points for a value of 1 cent each with Apple. The new rates make it possible to earn the newest iPhone 12 Pro for the cost of just one credit card welcome bonus.
Normally, Chase points are worth just one cent each when redeemed for Apple products. Here are the new (albeit temporary) redemption rates:
- Chase Sapphire Reserve® – 1.5 cents per point for everything
- Chase Sapphire Preferred® Card – 1.25 cents per point for everything
- Ink Business Preferred® Credit Card – 1.25 cents per point for everything
- Chase Freedom Flex℠ – 1.2 cents per point toward AirPods, 1.05 cents per point for everything else
- Chase Freedom Unlimited® – 1.2 cents per point toward AirPods, 1.05 cents per point for everything else
- Ink Business Cash℠ Credit Card – 1.2 cents per point toward AirPods, 1.05 cents per point for everything else
- Ink Business Unlimited℠ Credit Card – 1.2 cents per point toward AirPods, 1.05 cents per point for everything else
As you can see from the above image, the iPhone 12 Pro starts at $999. But with the Chase Sapphire Preferred® Card, you can buy it with 79,920 points — normally you’d have to use 99,900 points. The current bonus for Sapphire Preferred is 80,000 points after spending $4,000 on purchases within the first three months of account opening. That is almost exactly what you need to buy a new iPhone outright!
This improved method for redeeming Chase points is much like Chase’s new Pay Yourself Back tool, which gives you the option to redeem Chase points for purchases made at grocery stores, home improvement stores and restaurants at the same rate.
Is this a good deal?
We usually don’t recommend using Chase points for anything except travel. You can get so much more for your points by booking free flights or hotel nights.
We estimate Chase points to be worth 1.7 cents on average when used for travel, and that can be conservative in some cases. You can transfer points to travel partners (like Hyatt, United, Singapore and more) and get much more value from them. For example, last year I transferred 34,000 points to Iberia for a $1,500+ lie-flat business class seat from the U.S. to Europe. That’s a value of 4.4 cents per point. Read our post on the best ways to use Chase points for more details.
That being said, for those who have either the Chase Sapphire Preferred® Card, Chase Sapphire Reserve® or Ink Business Preferred® Credit Card, it could make sense to redeem points for Apple products if the only way you redeem points is through the Chase Travel Portal or with Chase’s Pay Yourself Back tool. This is because those two methods both offer the same value when redeeming your points (1.5 cents per point with the Sapphire Reserve and 1.25 cents for the Sapphire Preferred and Ink Business Preferred).
It’s always great to see banks boosting the redemption value for their points. And if you don’t think you’ll do any travel in 2021 because of the coronavirus, it could make sense to redeem your points for Apple products if you were already planning on purchasing something from them. Just keep in mind that you’re usually going to get more value when transferring to partners and redeeming for luxury travel!
Let us know if you jump on this limited-time deal. And subscribe to our newsletter for more alerts when good travel & credit card deals pop up.
Featured image by NYC Russ/Shutterstock
Chase Sapphire Preferred® CardAPPLY NOW
Chase Sapphire Preferred® Card
Earn 80,000 bonus points after you spend $4,000 on purchases in the first 3 months from account opening. That’s $1,000 toward travel when you redeem through Chase Ultimate Rewards®.
2X points on travel and dining at restaurants worldwide, eligible delivery services, takeout and dining out & 1 point per dollar spent on all other purchases.
Get 25% more value when you redeem for airfare, hotels, car rentals and cruises through Chase Ultimate Rewards. For example, 80,000 points are worth $1,000 toward travel.
Get unlimited deliveries with a $0 delivery fee and reduced service fees on orders over $12 for a minimum of one year on qualifying food purchases with DashPass, DoorDash’s subscription service. Activate by 12/31/21.
Earn 5X points on Lyft rides through March 2022. That’s 3X points in addition to the 2X points you already earn on travel.
Either $5 or 5% of the amount of each transfer, whichever is greater.
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