Earn 2,000 bonus points on your biggest household expenses right now

Apr 3, 2020

This post contains references to products from one or more of our advertisers. We may receive compensation when you click on links to those products. Terms apply to the offers listed on this page. For an explanation of our Advertising Policy, visit this page.

By now, most of you are probably looking for ways to earn more miles while stuck at home. If you’ve already planned how you’ll max out the 5x category bonus on the Chase Freedom® card this quarter, there may be another option for you. The Chase Freedom Unlimited® card is offering up to 2,000 bonus points on $250 in combined purchases across some of the most common spending categories:

  • Utilities
  • Insurance
  • Phone service
  • Cable
  • Internet

The information for the Chase Freedom and Freedom Unlimited has been collected independently by The Points Guy. The card details on this page have not been reviewed or provided by the card issuer.

Want to learn more about credit card points and miles? Sign up for our daily newsletter.

How it works

The catch with this offer is that you must be targeted (check your email) and register for this offer before using your card. You have until Sept. 30, 2020, to activate and take advantage of this bonus. Chances are most of you can easily spend $250 across these five categories over the next five months. So if you were targeted, you should go ahead and set the Freedom Unlimited as your default payment method for these monthly bills.

What’s interesting is that the email specifically promotes this offer as “2,000 rewards points.” That’s because the Chase Freedom Unlimited is actually a cash-back card. If you have another Ultimate Rewards-earning credit card, like the Chase Sapphire Preferred® Card or Chase Sapphire Reserve®, then you can convert your cash-back rewards to Ultimate Rewards points. So my guess is that this offer may be targeted toward Chase Freedom Unlimited cardholders who also have an Ultimate Rewards-earning credit card, though it could just be targeted wording for this specific cardholder group.

Related Reading: TPG readers’ best tips for maximizing points and miles

Why this is a great offer

The Chase Freedom Unlimited normally earns 1.5% cash back (or 1.5 Ultimate Rewards points per dollar spent). That already makes it my go-to card for non-bonus spending. At 2,000 points for $250 spent, you’re earning a whopping 8 points per dollar spent. Since TPG values Ultimate Rewards points at 2 cents each, that becomes a 16 cent return on every dollar. That’s an incredible return on non-bonus category spending, so if you’ve been targeted for this offer, you should activate it and take advantage.

What you can do with 2,000 Ultimate Rewards points

While 2,000 Ultimate Rewards points are worth around $40, the real value comes down to how you end redeem your points. Some of you have been sharing that you’ve redeemed points for statement credits at a rate of 1 cent per point. That’s perfectly understandable, considering the financial strain the novel coronavirus crisis has created.

If you transfer these points to your Chase Sapphire Reserve card, you can redeem them for $30 worth of travel through the Ultimate Rewards travel portal. That’s not exactly an option right now, but it can certainly come in handy down the road.

Hands down, the best way to get maximum value out of these points is by transferring them to airline and hotel partners once things go back to normal. And while 2,000 points may not sound like a lot, they can go a long way. I’ve personally booked round-trip Southwest Airlines awards that cost ~$90 for around 2,100 points. That’s a value of well over 4 cents per point.

Related Reading: Best credit cards for streaming services

Bottom line

While 2,000 bonus points aren’t earth-shattering, this is a nice way for Chase Freedom cardholders to earn even more points on spending on household bills that don’t typically earn bonus points beyond the standard rate. Between the category bonuses offered by the Chase Freedom card this quarter and now this 2,000-point bonus from the Unlimited, you’ve got plenty of opportunities to maximize essential spending while in self-isolation.

Featured image by Hero Images/Getty Images

Chase Sapphire Preferred® Card

WELCOME OFFER: 60,000 Points

TPG'S BONUS VALUATION*: $1,200

CARD HIGHLIGHTS: 2X points on all travel and dining, points transferrable to over a dozen travel partners

*Bonus value is an estimated value calculated by TPG and not the card issuer. View our latest valuations here.

Apply Now
More Things to Know
  • Earn 60,000 bonus points after you spend $4,000 on purchases in the first 3 months from account opening. That's $750 toward travel when you redeem through Chase Ultimate Rewards®
  • 2X points on travel and dining at restaurants worldwide & 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, 60,000 points are worth $750 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.
Intro APR on Purchases
N/A
Regular APR
15.99%-22.99% Variable
Annual Fee
$95
Balance Transfer Fee
Either $5 or 5% of the amount of each transfer, whichever is greater.
Recommended Credit
Excellent/Good

Editorial Disclaimer: Opinions expressed here are the author’s alone, not those of any bank, credit card issuer, airlines or hotel chain, and have not been reviewed, approved or otherwise endorsed by any of these entities.

Disclaimer: The responses below are not provided or commissioned by the bank advertiser. Responses have not been reviewed, approved or otherwise endorsed by the bank advertiser. It is not the bank advertiser’s responsibility to ensure all posts and/or questions are answered.