Strange Chase rewards rule

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To My Credit
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Strange Chase rewards rule

Postby To My Credit » Tue Aug 16, 2016 5:56 pm

This is one of their terms:
Statement credits will reduce your balance but you are still required to make at least your minimum payment.


Let me explain how that works. If you had a statement balance of $100 and a minimum payment due of $25, and you redeemed your rewards balance of $100 to pay your statement balance in full, you'd still need to make the minimum payment of $25. Why, I have no idea, but I just double-checked with Chase and that's what they say.

Strange rule, to say the least. I can see a lot of people missing their payments because of this rule.
Current cards: BankAmericard CR, BankAmericard BBR, Citi Double Cash, Chase Freedom, AmEx BCE, Discover It
Wishlist: US Bank Cash+


Nixon
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Re: Strange Chase rewards rule

Postby Nixon » Tue Aug 16, 2016 6:04 pm

Why the hell are you using ultimate rewards to pay down your bill?
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augiedog
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Re: Strange Chase rewards rule

Postby augiedog » Tue Aug 16, 2016 6:23 pm

That's why it's much easier to take the cash as a direct deposit. On the Amex Blue Cash you normally have to redeem as a statement credit, so I always pay whatever the statement balance is just as a precaution (even if it results in a credit balance).
American Express: Blue Cash Everyday (10k), Everyday, ; Discover It (7.3k) ; Target (2.1k)

Citi: Diamond (2k) ; Bank of America: Cash Rewards (2.6k) ; Capital One: Quicksilver (3k) , Sony ; Chase: Freedom (3.7k), Slate (3k), (Amazon) ; Barclay Ring ; Synchrony: Walmart MC, Amazon, Ebates

To My Credit
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Re: Strange Chase rewards rule

Postby To My Credit » Tue Aug 16, 2016 6:58 pm

Nixon wrote:Why the hell are you using ultimate rewards to pay down your bill?
What do you suggest?
Current cards: BankAmericard CR, BankAmericard BBR, Citi Double Cash, Chase Freedom, AmEx BCE, Discover It
Wishlist: US Bank Cash+

To My Credit
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Re: Strange Chase rewards rule

Postby To My Credit » Wed Aug 17, 2016 12:43 am

augiedog wrote:That's why it's much easier to take the cash as a direct deposit. On the Amex Blue Cash you normally have to redeem as a statement credit, so I always pay whatever the statement balance is just as a precaution (even if it results in a credit balance).

Yeah, I think I'm just going to request direct deposits from now on.
Current cards: BankAmericard CR, BankAmericard BBR, Citi Double Cash, Chase Freedom, AmEx BCE, Discover It
Wishlist: US Bank Cash+

Nixon
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Re: Strange Chase rewards rule

Postby Nixon » Wed Aug 17, 2016 5:08 am

To My Credit wrote:
Nixon wrote:Why the hell are you using ultimate rewards to pay down your bill?
What do you suggest?


Travel redemption or xfer to program for best values.
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kdm31091
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Re: Strange Chase rewards rule

Postby kdm31091 » Wed Aug 17, 2016 8:52 am

To My Credit wrote:This is one of their terms:
Statement credits will reduce your balance but you are still required to make at least your minimum payment.


Let me explain how that works. If you had a statement balance of $100 and a minimum payment due of $25, and you redeemed your rewards balance of $100 to pay your statement balance in full, you'd still need to make the minimum payment of $25. Why, I have no idea, but I just double-checked with Chase and that's what they say.

Strange rule, to say the least. I can see a lot of people missing their payments because of this rule.


This isn't unique to Chase. Almost any lender who allows statement credits for rewards has the same language. They don't consider it a payment. I think there is an exception, but I can't remember who it is. Discover maybe.

In any event, definitely not uncommon.

To My Credit
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Re: Strange Chase rewards rule

Postby To My Credit » Wed Aug 17, 2016 10:12 am

Nixon wrote:Travel redemption or xfer to program for best values.

I have a travel coming up, so I looked around on the Ultimate Rewards page but it wasn't really giving me any cheaper options than buying it elsewhere.

Not sure what you mean by "xfer to program for best values." I don't have CSP or any other Chase card, if that's what you're referring to.
Current cards: BankAmericard CR, BankAmericard BBR, Citi Double Cash, Chase Freedom, AmEx BCE, Discover It
Wishlist: US Bank Cash+

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CarefulBuilder14
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Re: Strange Chase rewards rule

Postby CarefulBuilder14 » Wed Aug 17, 2016 11:17 am

kdm31091 wrote:
To My Credit wrote:This is one of their terms:
Statement credits will reduce your balance but you are still required to make at least your minimum payment.


Let me explain how that works. If you had a statement balance of $100 and a minimum payment due of $25, and you redeemed your rewards balance of $100 to pay your statement balance in full, you'd still need to make the minimum payment of $25. Why, I have no idea, but I just double-checked with Chase and that's what they say.

Strange rule, to say the least. I can see a lot of people missing their payments because of this rule.


This isn't unique to Chase. Almost any lender who allows statement credits for rewards has the same language. They don't consider it a payment. I think there is an exception, but I can't remember who it is. Discover maybe.

In any event, definitely not uncommon.

Discover gives the option of drawing cash from cash back rewards when making a payment.
To My Credit wrote:
Nixon wrote:Travel redemption or xfer to program for best values.

I have a travel coming up, so I looked around on the Ultimate Rewards page but it wasn't really giving me any cheaper options than buying it elsewhere.

Not sure what you mean by "xfer to program for best values." I don't have CSP or any other Chase card, if that's what you're referring to.

...and you'd need an AF Chase card to pay for travel with a reduced number of points...the same sort of card that you'd need to transfer to hotel and airline programs.

If you're considering getting a CSP/CSR/Ink Plus within a year or two, then holding onto rewards may be best.
Love: IHG, Platinum, Sallie Mae, AA Plat, CSP
Like: Discover, ED, BCE, Hyatt, Arrival, Freedom
Might drop: BrooksBros, Prestige (Costco PC?)
Might add: Proper business card, CSR, Ritz, Delta Gold
Letting new accounts cool off since May
Really not sure what I'll add next or when

To My Credit
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Re: Strange Chase rewards rule

Postby To My Credit » Wed Aug 17, 2016 2:19 pm

CarefulBuilder14 wrote:If you're considering getting a CSP/CSR/Ink Plus within a year or two, then holding onto rewards may be best.
I thought of that but I'm probably not going to get the CSP anytime within the next 2 years so I went ahead and used my Ultimate Rewards.
Current cards: BankAmericard CR, BankAmericard BBR, Citi Double Cash, Chase Freedom, AmEx BCE, Discover It
Wishlist: US Bank Cash+



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