Chase Credit Cards Explained: Types, Benefits, and Strategy

Chase credit cards can be a bit overwhelming, but don't worry, I'm here to break it down for you.

Chase offers a wide range of credit cards, each with its own benefits and rewards. You can earn cash back, travel points, or even get exclusive discounts on popular brands.

Some Chase credit cards have no annual fee, while others charge a fee that can be offset by the rewards you earn. For example, the Chase Freedom Unlimited credit card has no annual fee, but the Chase Sapphire Preferred credit card charges a $95 annual fee.

To get the most out of your Chase credit card, it's essential to understand the different types of credit cards and their benefits.

For another approach, see: What Are the Benefits of Credit Cards

Chase offers a range of credit cards with different benefits and fees.

The Chase Sapphire Preferred Card has a $95 annual fee and offers a welcome bonus of 60,000 bonus points after spending $4,000 in the first three months.

The Chase Freedom Unlimited Card has no annual fee and earns 5% cash back on travel booked through Chase Travel.

The Chase Sapphire Reserve Card has a $550 annual fee, but it's currently offering a welcome bonus of 60,000 bonus points after spending $4,000 in the first three months.

These cards cater to different spending habits and preferences, so it's essential to choose the one that best fits your needs.

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Chase credit cards can be categorized into several types, including rewards cards, travel credit cards, cash back credit cards, starter credit cards, business credit cards, and co-branded credit cards.

Rewards cards are designed to give you points or miles for every purchase you make, which can be redeemed for travel, gift cards, or other rewards.

Travel credit cards are perfect for frequent travelers, offering benefits like airport lounge access, travel insurance, and no foreign transaction fees.

Cash back credit cards provide a percentage of your purchase back as a statement credit, which can be a great way to earn money back on your daily expenses.

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Starter credit cards are ideal for those who are new to credit or rebuilding their credit history, offering a chance to establish or rebuild credit with a low credit limit.

Business credit cards are designed for business owners, providing benefits like rewards on business purchases, employee cards, and expense tracking.

Co-branded credit cards are partnered with specific brands or companies, offering rewards and benefits tailored to those brands, such as airline miles or hotel points.

Some Chase credit cards can fall under multiple categories, like a rewards credit card that's also co-branded with a specific airline.

Here are the main types of Chase credit cards:

The Chase Sapphire Preferred Card is a fantastic all-around travel credit card. It earns points at the following rates: 5 points per dollar spent on Lyft, 5 points per dollar spent on all travel purchased through Chase Travel, 3 points per dollar spent on dining, 3 points per dollar spent on select streaming services, 3 points per dollar spent on online grocery purchases, 2 points per dollar spent on all other travel, and 1 point per dollar spent on all other purchases.

The Sapphire Preferred Card has no foreign transaction fees and comes with many travel perks, including delayed baggage insurance, trip interruption/cancellation insurance, and primary car rental insurance. You can earn a welcome offer of 60,000 Ultimate Rewards points after spending $4,000 on purchases in the first three months of account opening.

The annual fee for the Sapphire Preferred Card is $95. This card is a great option for those who want to earn points on travel and dining purchases, and also have access to travel insurance and other perks.

Here are some key benefits of the Chase Sapphire Preferred Card:

The Ink Business Preferred Credit Card is a top choice for small-business owners, offering a generous welcome offer of 90,000 points after spending $8,000 in the first three months.

This card earns 3 points per dollar on travel, shipping, internet, cable, and phone services, as well as advertising made with social media sites and search engines, up to $150,000 in combined purchases per year.

You can also earn 1 point per dollar on all other purchases, making it a solid option for businesses with varied expenses.

One of the key benefits of this card is its ability to earn points on business-related expenses, such as travel and shipping, while also offering a strong rewards rate on other purchases.

The Ink Business Preferred Credit Card has no foreign transaction fees and offers a range of travel perks, including delayed baggage insurance, trip interruption/cancellation insurance, and primary car rental insurance.

If you're a small-business owner looking to earn rewards on your business expenses, the Ink Business Preferred Credit Card is definitely worth considering.

Here are the key benefits of the Ink Business Preferred Credit Card at a glance:

Earning and redeeming points with Chase credit cards can be a bit complex, but don't worry, I've got the basics covered. You can earn Chase Ultimate Rewards points by using one of the seven cards that allow you to do so, with rates ranging from 1 to 10 points per dollar spent.

To maximize your earning potential, it's a good idea to have more than one Chase card, as this allows you to combine your cash-back rewards into a single account and effectively convert them into fully transferable points. You can earn points with cards like the Chase Sapphire Reserve, Sapphire Preferred, and Ink Business Preferred, among others.

Here are some key redemption options to consider:

As you can see, transferring your points to travel partners or using Chase Travel bookings can give you the best value, but nontravel redemptions are still a viable option if you need cash or other rewards.

You can earn Chase Ultimate Rewards points through everyday spending on Chase-branded credit cards, with rates ranging from 1 to 10 points per dollar spent, depending on the card.

Chase has a 5/24 rule, which means you generally can't get approved for Chase cards if you've applied for five or more new credit cards across all banks in the past 24 months.

There are many ways to earn Chase points, including with cards like the Sapphire Reserve, Sapphire Preferred, and Ink Business Preferred.

Having more than one Chase card can make sense to maximize your earning and redeeming potential, especially if you can combine your Chase cash-back rewards into a single account.

Chase points can be redeemed for a statement credit or bank deposit at a flat rate of 1 cent each, or for gift cards and Apple products.

You can also use Chase Pay Yourself Back to redeem points for cash back at a rate of 1 to 1.5 cents each, depending on your card.

Here's a summary of the redemption options for Chase Ultimate Rewards points:

Chase points do not expire, provided you keep at least one card that earns Ultimate Rewards points open.

The Chase 5/24 rule is a significant restriction to be aware of if you're planning to use rewards credit cards to book travel. This rule affects your ability to be approved for some of the most popular rewards cards.

The rule isn't officially stated anywhere, but it's been well-documented for many years.

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