Throughout August, Chase cardholders can get a 10% discount on gift cards from over 10 retailers when they redeem their reward points through Chase Ultimate Rewards®.
While this reflects a small upgrade on gift card rates, it’s still not the best use of points. The 10% discount values Ultimate Rewards® points at 1.1 cents per point, while cardholders can get a minimum of 1.25 cents per point on travel at the Ultimate Rewards website.
Unless you would greatly benefit from a gift card from one of the select retailers, travel is still the best use of Ultimate Rewards® points.
Throughout the entire month of August, select gift cards are available for 10% off the regular price. For those who hold the Chase Sapphire Preferred® Card or the Chase Sapphire Reserve®, merchants with gift cards on sale are:
- American Eagle
- Regal Entertainment
- Yankee Candle
» Learn More: Not sure how to use Ultimate Rewards®? Get the best deals with our guide.
Those who hold a Chase Ink card, such as the Ink Business Preferred℠ Credit Card, can get discounts on gift cards through five other merchants:
- Google Play
- Home Depot
- Microsoft Office
- Panera Bread
To find the offers, log in to your Chase account and select the Ultimate Rewards portal. From there, select “Gift Cards.” Your available discounts should show up at the top of the screen.
The fine print
The discounts are available for redeeming Ultimate Rewards® points for gift cards. There are no cash discounts for purchasing gift cards with Chase Sapphire or Chase Ink cards. In addition, there are only limited gift card quantities available. Discounted gift cards are available while supplies last, and may not be available the entire month.
Because these are physical gift cards, shipping time applies. Expect to wait five to eight business days to receive gift cards, or three to five days with rush shipping. Rush shipping costs an additional $10, charged to your Chase credit card.
Is it a good deal?
While this is a better deal than what gift cards usually go for with Ultimate Rewards® points, it isn’t the best deal cardholders can get for their points. With the 25% bonus on travel booked through Ultimate Rewards travel, points are worth a minimum of 1.25 cents per point when put toward airfare or hotels.
With points trading for the select gift cards at 1.1 cents per point, it’s certainly not a terrible use of points. But if you want to get the best value, we still recommend putting them toward travel, either through Ultimate Rewards travel or with a transfer partner.
How to maximize your rewards
You want a travel credit card that prioritizes what’s important to you. Here are our picks for the best travel credit cards of 2018, including those best for:
- Airline miles and a large bonus: Chase Sapphire Preferred® Card (Earn 50,000 bonus points after you spend $4,000 on purchases in the first 3 months from account opening. That's $625 toward travel when you redeem through Chase Ultimate Rewards®).
- Flat-rate travel rewards: Capital One® Venture® Rewards Credit Card (Earn unlimited 2 miles per dollar on every purchase).
- Premium travel rewards: Chase Sapphire Reserve® (Get 3 points per dollar on travel and dining at restaurants worldwide and 1 point per dollar on all other purchases).
- No annual fee: Bank of America® Travel Rewards credit card (Earn unlimited 1.5 points per dollar spent on all purchases, with no annual fee).
- Luxury perks: The Platinum Card® from American Express (Get 5 points per dollar on flights booked directly with airlines or through American Express Travel, plus get access to the Global Lounge Collection). Terms Apply.
Planning a trip? Check out these articles for more inspiration and advice:
How To Maximize Your Travel by Shopping Through Chase
What’s the Best Way to Book Travel with Ultimate Rewards?
NerdWallet’s Best Chase Credit Cards of 2018
Feature image courtesy Chase Ultimate Rewards®