The value of travel rewards credit cards has been hit hard due to the coronavirus pandemic. Perhaps the hardest hit sector of the rewards credit card market is airline cards. With so many flights grounded, many customers are struggling to justify the high annual fees that come with some premium credit cards. Now Chase and United Airlines are joining forces to help combat this financial burden. Cardholders can now use United MileagePlus miles to pay their Chase credit card annual fees.
How to Pay Chase Annual Fees with MileagePlus Miles
Cardholders who opt to pay their annual fee using their United miles can do so at a value of 1.5 cents-per-mile. This redemption rate is an excellent value, considering many other award options provide less than one cent’s worth of value.
Not all United and Chase co-branded credit cards charge an annual fee upfront, though. The United℠ Explorer Card, for instance, has a $95 annual fee, but it’s waived the first year. The premium United Club Infinite Card also waives its annual fee the first 12 months, but its regular yearly charge thereafter is a steep $525.
Limitations of the New Offer
While many cardholders might find the offer enticing, there are restrictions as to who can use their miles to pay annual fees. The annual fee needs to have been posted within the last few months to be eligible for payment with miles, for instance. If the payment was charged in March, April, or May, for example, cardholders can apply miles to offset the charge. If not, however, they cannot use MileagePlus rewards to cover the annual fee.
Anyone upset that their United card doesn’t qualify for this new offer has other options available. Many cardholders are finding that Chase is willing to grant statement credits to offset the damage travel restrictions are having on the value of airline cards. If you do not qualify for the new “use MileagePlus miles to pay your annual fee” offer, contact Chase and ask for a retention offer in place of the new bonus.
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