Chase Ultimate Cash Award Card Review

Update - The Chase Ultimate Cash Award Card is no longer offered by Chase. This card was around during the 2005-2006 era. Back then, it was one of the better cash back cards arounds. We've have decided to keep a record of this review for archiving purpose and for folks who would like to know the history of credit cards. This will hopefully serve as a useful research tool. The peer comparisons that we make in this review are also cards from that era.

Summary - The Chase Ultimate Cash Award Card is one of the better cash back credit cards in the market because you can earn up to 5% rebates on "everyday purchases" and up to 2% rebates on "other purchases". Best of all, you can earn unlimited rebates with this card.

Rebate Formula - The Chase Ultimate Cash Award Card is a tiered cash back credit card. This is how the rebate formula works. You to earn up to 5% for purchases at standalone supermarkets, drugstores, gas stations and home improvement stores. You start to earn 5% rebates once your annual expenditure exceeds $6,000. You can earn up to 2% rebates on other purchases. The 2% rebate starts kicking in once annual expenditure exceeds $6,000. You do not need to carry a huge balance to earn the full rebate (just $0.01 or more). You can redeem your cash rebates when you have earned $25.00. You can earn unlimited cash rebates.

Fees and Rates - The Chase Ultimate Cash Award Card has no annual fee. There APR is either Prime Rate plus 7.99%, 12.99% or 15.99% depending on your credit profile. You get a 0% APR on balance transfers for the first 9 months. This credit card uses the two-cycle average daily balance method (including new purchases) of calculating balances.

Ultimate Cash Award vs Blue Cash - The Ultimate Cash Award really resembles the Amex Blue Cash in many ways. The Blue Cash pays 5% rebates on gas, supermarket and drugstore expenses and 1.5% rebates on other regular purchases once your annual spending exceeds $6,500. Prior to that, you earn 1.5% and 0.5% respectively. These cards are really similar. I would say that the Ultimate Cash Award Card comes out slightly ahead because the tier threshold is slightly lower and you get to ern 2% as on regular purchases within the tier. Update - The Blue Cash has changed it's rebate formula to to a non tier structure. You can read our Blue Cash EveryDay review here.

Ultimate Cash Award vs Citi Dividend Platinum Select Card - The Citi Dividend Platinum Select Card has been through several changes. Back in 2005 and 2006, the card paid 5% rebates on supermarket, gasoline and drugstore expenses and 1% on everything else. They capped the rebates you earned at $300 a year. But Citi always allowed you to get a second card! The Citi Dividend (the old version ie) is clearly better than the Ultimate Cash Award Card because it has no tiers.

Ultimate Cash Award vs Costco Credit Card - Another card that is worth comparing with is the TrueEarnings Costco credit card. Unlike the Ultimate Cash Award Card, Costco is a non tiered card. You get to earn 3% rebates on gasoline, 2% on dining and travel. So while the rebates are lower, there is no tier and spending thresholds before you can earn the top rebates. Hence, the costco is better suited for lower spenders (and obviously costco members).

Verdict - Back during it's days, this card is one of the best cash back cards around. The old Citi Dividend Card was probably better. But together with the old Blue Cash, it was one of the three cards that I would always recommend for those looking to earn cash rebates from their credit cards. Because of it's tier structure, low spenders are best advised to get a non-tiered rebate card. You can read our review of the latest Citi Dividend Card version here.

Right now, Chase has consolidated most of it's credit cards and it's cash back card is the Chase Freedom Card. Like it's predecessor, it is a card we recommend and is one of the better cash back cards today.

Positives

• High rebate payout on everyday purchase
• High rebate payout on for "other" purchases as well
• No annual fee

Negatives

• Have to spend more than $6,000 and carry a balance to earn full rebate