Chase Sapphire auctions — 2% or better return potential

One of the benefits of the Chase Ultimate Rewards program, which is used by the Chase Sapphire and Chase Sapphire Preferred cards, is the ability to use points to bid on auctions for merchandise and experiences. This is a little advertised feature that can net you some great bargains if you’re diligent. Here’s why…

• Ultimate Rewards is a relatively new program, so most members haven’t had the opportunity to rack up large point balances yet
• Real value products and experiences are offered — like Best Buy gift cards or special dinners
• Chase is busy building street credibility for the program, so is putting a lot of effort into appealing offers

$2500 Best Buy gift card…

Here’s a shot of an auction for a $2500 Best Buy gift card. Dozens of bids are in, and as the auction heads to closing it’s going for about 125,000 points, which works out to a value of 2 cents per point, or a 2% cash return on your spending. The 2 cents per point is quite respectable, especially if travel rewards aren’t your thing.

A wine tasting dinner for two — just 13,000 points

Chase also puts together special events like this wine tasting dinner at the Morton’s Steakhouse in Napa Valley. This is only going for 13,000 points, and includes a 4 course steak dinner for *two* with all wine included. We’re not sure what the exact value is but would imagine it’s about $150 per person. So you’re getting over $300 in value for just 13,000 points.

As Chase’s Sapphire cards get more popular the bidding may not be as friendly, but we imagine Chase will expand the number and types of auctions available for bidding. Current auctions include dinners, gift cards, golf lessons from celebrity pros, and NASCAR driving experiences.

Also best airline credit card

We rate the Chase Sapphire Preferred credit card the best airline miles credit card (see review)  because it offers the ability to transfer points directly into the programs of Continental Airlines, British Airways, Amtrak, Marriott, and Priority Club (Holiday Inn/Intercontinental/Crowne Plaza hotles). That’s in addition to the auctions and other merchandise you can use for redemption.

Click here to apply for the Chase Sapphire Preferred Card at Chase’s site.

You can also apply for the no annual fee base Chase Sapphire Card which has the full auction benefits, but lacks the airline mile transfer feature.