We have just completed a study that reveals the number of reward points required to redeem Apple products from all of the major credit card issuers. The purpose of the study was to see if it made economic sense to actually use reward points to get Apple products and also to see which reward program required the least points.

The credit card issuers involved in the study included Chase, Citibank, Bank of America, Capital One, and American Express. The investigated reward programs were the Ultimate Rewards from Chase, Thank You from Citi, World Points from Bank of America, Capital One’s reward program (no name), and Membership Rewards from American Express.For the online shopping portals, we looked at Ultimate Rewards, Citi Thank You, Bank of America Add It Up, Capital One’s Perk Central and Discover’s Shop Discover Online.

Methodology – To conduct the study, we picked a few Apple products that were widely available in these reward programs. While we found that most had almost a full range of Apple’s products, we understood that choosing just a handful would be sufficient and not affect the results at all.

The products that we chose included the Apple iPod Touch 8GB version, the iPad 2 16GB with Wi-Fi and 3G with either AT&T or Version, MacBook Air 13 Inch and the MacBook Pro 15 inch version. Both the iPod Touch and iPad products led to easy comparisons because unlike the MacBook Pro, the internal components were very much standard and not subject to consumer customization. The MacBook Pro was a little trickier because different reward programs had slightly different specifications. Hence, we had to go beyond just looking at the number of points needed to redeem for the MacBook Air and Pro. Instead, we also had to look at the specs and then compare the price it would cost at an Apple store versus the points required from a reward program.

Explanation of the Value of Reward Points – For most reward programs, the average value of one hundred points is one dollar. Let us assume for the moment that for the most part, you will earn one point when you charge one dollar to your reward card. That means when you get one dollar of value from one hundred points, you essentially get a 1% return or rebate equivalent.

To ascertain if it is worth using reward points to redeem for Apple products, we first determined the price of the product. To do so, we simply took the standard price from Apple’s online store. Once we have the price of the product, we know that to achieve a one percent reward return from reward points, the number of points required would be the price of the product multiplied by one hundred. For example, if a product cost $1000, then to achieve a 1% return, 100,000 reward points are needed. If more than 100,000 points are needed (in this hypothetical example), we would conclude that it is not worth using your points to redeem for the products because most other basic rewards like gift cards and cash back will yield one percent.

Results of Study

iPod Touch 8GB – The iPod Touch 8GB cost $199 on the Apple store with free shipping. That means that the benchmark to watch out for in terms of points required is 19,900.

The Chase Ultimate Rewards program requires 19,400 points, but you need to pick up the product from a Best Buy store. The Membership Rewards requires 37,100 points, which is almost two times the number of points required by the Chase Ultimate Rewards, though shipping of the product is provided. Citi’s Thank You requires 23,700 points and requires store pickup. But the version on their reward program is the 4th generation and not the 5th generation. Capital One requires an amazing 54,500 points and Bank of America requires 22,000 points.

For the iPod Touch 8GB, the Chase Ultimate Rewards is the only program that that makes it worthwhile to exchange your points for it (based on the price of $199).

iPad 2 – with Wi-Fi and 3G – For the iPad 2, we used the 16GB model with Wi-Fi and 3G. The price on Apple’s store is $629. Therefore, we will be looking at reward programs that require about 62,900 points or less. Chase Ultimate Rewards requires 64,200 points. Membership Rewards requires 118,400 points. Capital One requires 163,250 points though it comes with casing and cover. Citi’s Thank You did not have this item. Bank of America requires 75,300 points. Once again, it appears that the Ultimate Rewards from Chase provides the best value using reward points for the iPad 2.

MacBook Air 13 Inch – For the MacBook Air 13 inch, the specifications is as follows. The processor was the Intel i5 Core, 1.7GHz and 256GB Solid State Drive. The price on Apple’s store was $1,799. Chase Ultimate Rewards needed 152,800 points. Membership Rewards needed 293,500 points. World Points needed 176,200 points. Citi Thank You did not have this model. Instead, they had the Core Duo with 128GB of Solid State Drive.

MacBook Pro 15 Inch – The last time is trickier because the specifications differ with different programs. The model we chose has Intel Core i7 with 2.2GHc Processing speed, 4GB Memory, 500GB SATA Hard Drive and Intel high-definition Graphics3000 and AMD Radeon HD6750M. On Apple’s online store, a similar model cost $1799.

Chase Ultimate Reward Points required 174,200 points. Membership Rewards has a very similar model on as the first model from Chase – Intel Core i7 2.2GHz processing speed, 4GB memory, 750GB Hard drive, Intel high-definition Graphics 3000 and AMD Radeon HD6750M with 1GB GDDR5. So it has a slightly more memory in the hard drive and AMD graphics. But the number of points required is 409,700 points.

Citi Thank You had a Intel Core i7 2.2GHz, and almost similar specs to Chase and Membership Rewards. The number of points required is 210,200 points.

Capital One requires 409,500 points. There were no specs on their website. Bank of America’s World Points does not have MacBook Pro in their reward program when we checked.

Observations

From this study, we can make the following observations.

1. If you would like to use reward points to redeem for Apple products, the Chase Ultimate Rewards program is the only program among the major credit card issuers that makes it worthwhile to do so. By using the Ultimate Reward points for Apple products, you are getting about one percent return or rebate equivalent.

2. The Ultimate Rewards program requires the least number of points for Apple product redemptions. Close behind is Bank of America’s World Points program and Citi Thank You.

3. Membership Rewards from American Express and Capital One require the most number of points.

4. All reward programs, with the exception of Capital One, listed detailed specification of the products in their catalog.

Conclusion

For the most part, using reward points in exchange for Apple Products in a credit card program yields less than 1% rebate or return on your reward points. The exception to this rule is the Ultimate Rewards program from Chase where you do get 1% and slightly more. Citi’s Thank You Rewards and Bank of America’s World Points require slightly more points than Chase and yields just slightly less than 1% in returns. One should avoid using Membership Reward points or reward points from Capital One for Apple products.

Here is the 5% Cash Back Rotating Categories for the Chase Freedom. I actually got this because I am a member and I got an email asking me to sign up for the first quarter. Here is the list.

January 1st to March 31st – Gas Stations, Amazon.com
April 1st to June 30th – Grocery Stores, Movie Theaters
July 1st to September 30th – Gas Stations, Restaurants
October 1st to December 31st – Hotels, Airlines, Best Buy and Kohl’s.

Chase Freedom 2012 Rotating Categories Compared To 2011 and 2010

Here are a couple of initial observations I have made. Firstly, there are two quarters where the “gas” category appears. This is actually good news because for six months, cardholders can get 5% rebates from gas stations. Secondly, I was surprised to see the addition of Amazon.com during the first quarter. I was also surprised and happy to see Kohl’s and Best Buy in the category for the 4th quarter, but as we will find out soon, it comes at the expense of the “department store category”.

In 2011 and 2010, grocery and drugstores, dining, utilities and child care were in the 1st quarter. This year, none of these categories appear in the first quarter and instead, it has been replaced by gas and purchases at amazon.com. In 2011, the second quarter category was main home furnishings and home improvements. For 2012, Chase has not even included this category at all. Instead, it has been replaced by grocery stores and movie theaters (great for folks who watch the latest summer releases). In the third quarter of 2011 and 2010, Chase had airlines, hotels and gas in the category. For 2012, it’s just gas and restaurants. Instead, they have shifted the hotels and airlines to the fourth quarter and added Kohl’s and Best Buy (which I think makes lots of sense). However, in 2010 and 2011, they did have the “department store” category in the 4th quarter and I’m sure that has helped many folks save lots of money. However, by including only Kohl’s and Best Buy, they have narrowed by the field and this is probably not such a great thing for cardholders the next holiday season.

To sum up, I think that having two quarters where you can earn 5% on gas is a great thing. Folks use the card for home improvement purchases in spring will not be too happy. It is also a shame that they took away the “department store” category in the fourth quarter of 2012 and instead replaced it with Kohl’s and Best Buy only.

Below is a screenshot of the email that I got.

Chase Freedom 2011 Rotating Categories

Jan 1 to March 31 – Grocery and Drugstores
April 1 to June 30 – Home Improvement, Lawn and Garden, Home Furnishings
July 1 to Sept 30 – Airlines, Gas, Hotels
October 1 to December 31 – Dining, Department Stores, Movies, Charity

Chase Freedom 2010 Rotating Categories

Jan 1 to March 31 – Dining, Utilities, Education/child care
April 1 to June 30 – Home Improvement, Lawn and Garden, Home Furnishings, Drugstore
July 1 to Sept 30 – Airlines, Gas, Hotels, Auto Rentals
October 1 to December 31 – Grocery Stores, Department Stores, Movies

My eldest son wanted an Xbox for his Christmas present. Mrs Credit Card and myself were initially hesitant because we already have a Wii! However, he has been doing well in school, doing his homework on his own, and basically being very independent. So we decided we were going to get him the Xbox. But to Mrs Credit Card’s horror, the full blown holiday bundle cost $399 and we were not willing to spend so that much. Then I remembered that we had over 60k Ultimate Reward Points and Membership Reward Points and so I proceeded to check to see if it was worth redeeming it.

Xbox 360 250GB with Kinect Holiday Bundle with – If you go to Xboxs’ site and other retailers, the 250GB holiday bundle cost $399. That means to achieve 1% rebates equivalent from reward points, I should only be using 39900 points (or close to that). So I started checking the number of points required. Here is the list.

Chase Ultimate Rewards – 40,800 points
Membership Rewards – 66,640 points (down from 78,400!)
Citi ThankYou – 49,400 points
WorldPoints – They had the bundle without Kinect for 48,100 points

So if I used my Ultimate Reward Points, I got slightly less than 1%. But the points required for the Xbox I wanted were too high and it was not worthwhile to use the other programs. I could actually have bought it online or in a store, and then used my points for a statement credit (exactly 1% cash back). But in the end, I decided to just use the points on Ultimate Rewards. And I am glad I did because it was so convenient. I’ll now run through the exact steps you have to take (with screen shots).

Step 1: Log into Your Chase Account and Go To The Ultimate Rewards Merchandise Page – After logging into your Chase account, just go to the Ultimate Rewards page (there will be a link close to your card that has Ultimate Rewards – in my case it was the Chase Freedom.

Step 2: Find The Product You Want – The next step is obviously to look for what you want. You can either click the relevant category on the left navigation bar or type in the product in their search box. In this case, I was looking for the Xbox. Once you have found the item, simply click on the “check store” link (if you want to pick it up from a store and save on shipping cost).

Step 3: Find Nearest PickUp Store – After clicking on “check store” link, you will be taken to a screen where you have to enter your zip code to find the nearest pickup store. In my case, it was the King of Prussia Mall.

Step 4: Check Details On Shopping Cart And Click CheckOut Button – The next step is to check the details on your shopping cart to make sure that it is correct. As you can see from the screen shots, you can choose to have it delivered to your home or have it picked up at a store. The bottom of the page shows the points you have, the points you will use (in my case the Xbox) and the number of points that will be left in your account. Once you are happy that everything is in order, simply click the “check out” button.

Step 5: Place Your Order – Then finally, you can “place your order”.

Step 6: Receive Confirmation Number – After you have “placed your order”, you will get a screen on your computer thanking you for the order and showing your confirmation number.

Step 7: Check Your Email – The next step you have to do is to check your email. Chase will send you an email confirming your order. However, on that email, you will be told to expect another email when the store has your item ready for pickup.

Step 8: Ready For PickUp Email – After about two minutes after receiving the first email, I got another email saying that my Xbox is ready for pickup. The email said to print a copy of it and bring it to the store. I did not pick it up the same day but instead went to Best Buy the next morning and picked it up from the customer service counter. You would have to bring your drivers license along as they will check for ID.

Step 9: Email Confirmation That Item Has Been Picked Up – After I got home from picking up the Xbox, I saw another email from Chase confirming that the Xbox has been picked up.

So there you have it. The entire process of redeeming a merchandise with your Ultimate Reward Points. I must say that the process went extremely smooth and the number of points required for the Xbox was pretty reasonable as well. I got about 1% worth from my reward points which I am happy considering it was for an Xbox and not some hacked out international business class ticket.

If you are interested in earning ultimate reward points, the Chase Freedom, Chase Sapphire and the Chase Sapphire Preferred Card will be the cards to check out.

Combining credit cards and coupons is a devastatingly effective money saving strategy. You can use the coupons for instant savings and your credit cards for their cash back or reward value. When you take the time to understand the techniques involved, you can really stretch your dollar to new heights. If you feel even more adventurous you can combine credit cards, coupons, store sales and online sites like UPromise to pinch that penny until it cries. Let’s take a look at some of the insider tactics that will have you saving like a professional in no time flat.

Off-line saving combination strategies:

If you’re new to coupons you’ll want to pick up the Sunday paper each week, and start clipping. You’ll follow that by looking at the store circulars for your area so that you can combine your coupon with their sale offers. Then, you’ll take your cash back or reward credit card and use it to shop.

Some of the best credit cards for off-line shopping include:

The Discover More Cards – Discover’s prime savings categories rotate quarterly and their sign up bonuses change frequently. As of the fourth quarter of 2011, the top sign-up bonus is $150 cash back, and this quarter you can get 5% rebates when shopping at department stores, clothing stores and restaurants up to $300. Combine that cash back with an average 50% savings by using coupons at the grocery store, and you’re going to be doing pretty well at the end of the month. Here’s another insider tip: You can double your Discover rebate by redeeming it as a gift certificate. Discover features over 100 different partners on the double-up gift certificate offer.

Keep Reading: The Discover More Credit Card Review and  Bonus Offer

So, the first strategy would be to max out your Discover More sign-up bonus and focus your coupons and spending into their current quarterly reward category. Once you’ve reached Discover’s category limits you stop using that card and switch to a card like this one:

 The Blue Cash every day from American Express. The blue cash gives 3% back at supermarkets and 2% on all your gas and department store purchases. There is no cap on the earnings which is especially attractive if you’re looking at the big savings picture. Subtracting an extra 3% off on all the groceries you buy for a year, stacked with your regular coupon savings is a nice little bonus. (Read On: The Amex Blue Cash Review) This is one reason that cash back cards beat store credit and gas credit cards to pieces. Not to mention American Express offers automatic extended warranties and a host of other perks that make saving with them even more attractive.

All in all that’s a pretty simple deal. Use the Discover card to max out your quarterly refunds four times a year, double the value with a gift card, and then switch to your Amex Blue Cash for the consistent rebate.

Online Savings Combination Strategies:

It used to be that you couldn’t get the same degree of savings online as you could off-line. Fortunately, the opposite is actually true now. You can stack online discounts as easily as you can use a physical coupon – and that includes your groceries!

Retailers like Amazon offer regular grocery subscriptions that have special discounts built in. Amazon calls it their “subscribe and save” program. We say, couple that 15% off with their 70% off sale priced items (which change constantly) and use your Discover card to pay for it. According to the Christian Science Monitor, Amazon and Discover just teamed up to offer an extra 2% back to Amazon shoppers who use their Discover card, up to $250 a month. They are also offering a direct deal where you can use your Discover cash back bonus at Amazon when you link both accounts.

It’s no secret among the online parenting community that Amazon has one of the best deals around on diapers and other newborn essentials. Parents of babies can join the occasionally-open Amazon Mom program to save an additional 15% on top of the sale price, on top of the subscribe and save, and on top of the Discover bonus. The diapers may end up dirty, but that is still one sweet smelling deal.

Amazon and parenting deals aside, there are plenty of other ways to stack your shopping discounts online. Our favorite method takes advantage of the online shopping portals that most credit card issuers have set up.

 How Credit Card Shopping Portals Work:

Credit card shopping portals combine the best of online shopping with extra rewards from your credit card companies. In some cases you can get up to 20% back for every dollar you spend. If you combine those shopping portals with discounted items, and add in free shipping codes from places like RetailMeNot, you’re going to practically be stealing and getting rewarded for doing it.

Our favorite online credit card shopping portals are with Discover, Chase, and Citi. You can read our reviews of those portals and bonus offers by clicking the links on each.

If you’ve got last minute holiday shopping to do, you’re going to save a bundle (and you still have a couple days left to guarantee delivery on online items before Christmas).

How do I opt out of pre-screened credit card offers?

If you are tired of receiving unsolicited credit card offers in your mail box each week, there is a way to prevent it from happening.

Why you get unsolicited offers of credit in the mail:

The three credit bureaus (TransUnion, Equifax and Experian) regularly sell lists of consumer’s names to the major credit card companies. The credit card companies then send out offers of credit based on the range your credit score fell into at the time the list was made.

If you are tired of these offers there is a simple way to make them stop. However, before you decide whether opting out of credit card mailers is right for you, you may want to consider some of the pros and cons:

Pros:

• Opting out could reduce the possibility of identity theft. You will not have to worry about someone else getting their hands on your credit card offers and ruining your credit.
• The majority of credit card companies who your information also find a way to re-sell it. Opting out of the initial list could impact the total level of junk mail you receive. Your name would no longer be sold over and over again to different companies throughout the United States.
• It is getting easier and easier to compare credit offers online. When you decide it is time to apply you can simply search for a card that meets your needs. You can even read reviews and direct card- to- card comparisons without ever leaving your chair, much less opening junk mail.

Cons:

• Occasionally credit card companies will use direct mail to send you an offer that they do not make publicly available – especially if you have either excellent credit or horrible credit. (There are companies that target both markets). The interest rates you are offered by mail could be better than the offers that show up online, or the offer may have had other rewards attached. This is not common practice, but it does happen.

Tip:
The best way to combat that little voice in the back of your head that says, “I wonder if I could have gotten a better deal?” is to do a little research online. Credit card companies do not typically make unique, one time only, or only-for-you offers. (Although they want you to think they do!)

Chances are, if you would have been “pre-selected” for an offer, then other people were too – and you can usually find unbiased opinions of those offers in forums like this one. If you hear of a better than advertised deal, call the credit card company and see if you can get approved for it.

How to stop getting unsolicited offers of credit:

Under the Fair Credit Reporting Act (FCRA) you have the right to “Opt-Out” of pre-approved or pre-selected credit card offers. You can choose to remove your name from the marketing list for 5 years, or to opt-out permanently and never receive offers again. You can also opt back in if you change your mind later.

To begin opting-out of credit card offers by mail, or to find out more about what opting out will mean to you, click here.