What the Chase Preferred Bonus Actually Is
The Chase Preferred Bonus is a cash reward or points offer that Chase gives you when you open a new credit card and spend a certain amount of money within a set timeframe. It is not information programs — you have to meet the spending requirement to get it. The bonus typically comes as either a lump sum of cash back or a large number of points you can redeem for travel, cash, or other rewards, depending on which Chase card you choose.
Chase rotates which cards offer bonuses and how large those bonuses are. The offer you see today may be different from the offer next month. The bonus is designed to reward you for opening the account and using it, but the real value depends on whether you would have spent that money anyway and whether you can use the points or cash you receive.
Key Takeaways
- You must spend a specific amount (often $500 to $5,000) within a set window (usually three to six months) to receive the bonus.
- The bonus comes as either cash back or points; points are worth different amounts depending on how you redeem them.
- You pay an annual fee on most Chase Preferred cards, which may offset the bonus value in year one.
- The bonus is only available to new cardholders, and Chase has rules about how long you must wait between bonuses on the same card.
- Meeting the spending requirement by putting planned expenses on the card is safer than spending extra money just to hit the target.
How Much You Actually Get and When
Chase Preferred cards typically offer bonuses ranging from $200 to $1,500 in cash back, or 50,000 to 100,000 points (the exact value of points varies). Some cards offer a combination — for example, a cash bonus plus bonus points on certain categories. The bonus posts to your account within a few weeks after you meet the spending requirement, though the exact timing depends on the card and Chase's processing.
The catch is that most Chase Preferred cards charge an annual fee, often $95 to $550. In year one, you need to subtract that fee from the bonus to see your real gain. A $500 bonus minus a $95 annual fee leaves you $405 ahead, but only if you actually use the card's rewards features or if the card's benefits (like travel credits or lounge access) are worth the fee to you.
The Spending Requirement and How to Meet It
Every Chase Preferred bonus comes with a minimum spending requirement. Common amounts are $500, $1,000, $3,000, or $5,000, and you typically have three to six months to spend it. This spending must happen on the card itself — it does not include balance transfers or cash advances, and it usually does not include fees or interest charges.
The safest way to meet the requirement is to put your normal, planned expenses on the card. If you were going to pay for groceries, gas, and utilities anyway, charging those to the new card gets you closer to the target without changing your actual spending. If you have to spend extra money just to hit the requirement, you are paying more than the bonus is worth. For example, if the bonus is $500 but you spend an extra $1,000 to reach the requirement, you are essentially paying $500 for a $500 reward.
Who Can Get the Bonus and When
Chase has specific rules about who is may be able to access for a Preferred bonus. You cannot receive a bonus if you have opened the same card within a certain timeframe — usually the last 24 months, though this varies by card. You also cannot receive a bonus if you currently hold that card or have a pending process for it.
These rules exist to prevent people from opening and closing cards repeatedly just to collect bonuses. Chase tracks this through your Social Security number and the cards you have held. If you closed a Chase Preferred card two years ago, you may be able to open it again and receive a new bonus, but Chase's system will flag you if you try too soon. Before you explore, check Chase's current terms for the specific card, as the rules change periodically.
Annual Fees and Whether the Bonus Covers Them
Most Chase Preferred cards charge an annual fee in the first year, not just in later years. A $95 annual fee is common on mid-tier cards, while premium cards may charge $250 to $550. This fee is charged to your account shortly after you open the card, so you see the bonus and the fee in the same billing cycle.
To decide if the bonus is worth it, compare the bonus amount to the annual fee. If a card offers a $500 bonus and charges $95 per year, you come out $405 ahead in year one — but only if you keep the card and use its rewards. If you plan to close the card after the first year to avoid paying the fee again, you need to make sure the bonus and any rewards you earn in that year exceed the fee. Some cards offer a statement credit or other benefit that effectively covers the annual fee, which changes the math.
Points Versus Cash Back and What They Are Actually Worth
Chase Preferred cards offer bonuses in either cash back or points. Cash back is straightforward — $500 cash back is worth $500. Points are more complicated because their value depends on how you redeem them.
With Chase's Ultimate Rewards program, points can be redeemed for cash (usually at a rate of 1 point = 1 cent), transferred to travel partners like airlines or hotels, or used to book travel through Chase's travel portal. When you transfer points to a partner or book through the portal, each point may be worth more than one cent — sometimes 1.5 cents or more — but only if you choose redemptions that offer that value. If you redeem points for cash, you get the lower rate. This means a 50,000-point bonus could be worth $500 in cash or potentially $750 or more if you transfer the points strategically, but only if you know how to do that and have a travel partner you want to use.
What Happens After You Get the Bonus
Once the bonus posts to your account, it is yours to keep — Chase does not take it back if you close the card later. However, the real cost of the card continues after the bonus. You will pay the annual fee again next year unless you close the card or downgrade to a no-fee version (if Chase offers one for that card).
Many people keep a Chase Preferred card for one year to earn the bonus and use the card's rewards, then close it or downgrade before the second annual fee hits. Others keep the card long-term if they use it frequently and the rewards and benefits justify the annual fee. There is no penalty from Chase for closing the card after one year, but closing too many cards in a short time can affect your credit score slightly because it lowers your average account age and available credit.
Frequently Asked Questions
Can I get the bonus if I already have a Chase checking account?
Having a Chase checking account does not disqualify you from a credit card bonus, and it does not automatically make you may be able to access either. Chase treats credit card bonuses separately from bank account relationships. You still need to meet the same spending requirement and follow the same rules about how long it has been since you last held that card.
What if I don't spend enough to meet the requirement?
If you do not reach the minimum spending within the timeframe, you do not receive the bonus. Chase does not give partial bonuses or extend the important date. The only way to get the bonus is to spend the full required amount before the important date ends. This is why it is important to check the important date when you open the card and set a reminder.
Can I use the bonus to pay off my balance?
The bonus posts as a statement credit or account credit, so it effectively reduces your balance. If you owe $500 and receive a $500 bonus, your new balance is $0. You cannot transfer the bonus to another account or withdraw it as cash (unless it is a cash back bonus, which you can redeem for cash).
Do I have to use the card after I get the bonus?
No. Once the bonus posts, you can close the card, stop using it, or keep it open. There is no requirement to continue spending on the card to keep the bonus. However, if you close the card, you will still owe the annual fee for that year unless you close it before the fee is charged (usually within 30 days of opening).
How does the bonus affect my credit score?
Opening a new credit card temporarily lowers your score because it creates a hard inquiry and lowers your average account age. The bonus itself does not affect your score. Over time, if you use the card responsibly and pay on time, your score typically recovers and may improve because you have more available credit and a longer payment history.