JPMorgan Chase is intensifying its rewards points battle with American Express by offering 100,000 Chase Ultimate Rewards points for its Sapphire, Sapphire Preferred and Sapphire Reserve credit card holders that open a mortgage with the company. Earlier this week Chase announced the new offer, which will run through August 6.
According to a report in MarketWatch, credit cards with high rewards points have become very popular with millennials, particularly when it comes to the Sapphire Reserve card, which came out in 2016 with a 100,000 point sign-on bonus. Chase ultimately reduced it to 50,000 points, noted the report. Between September 2016 and November 2016, around 900,000 consumers signed up for the card, noted the report, citing credit card experts. Because of the huge interest in the card, the bank’s profit in the fourth quarter was reduced to $300 million, reported MarketWatch, noting Chase is now going after younger consumers with the generous rewards points.
In a statement to MarketWatch Pam Codispoti, the president of Chase Branded Cards said half of the Sapphire card customers are millennials, many of whom may be looking to purchase their first home soon. Meanwhile, a Chase spokeswoman said customers under the age of 35 represented 36 percent of Chase’s mortgage originations in 2016, a 20 percent increase from 2015. Chase hopes that with this type of rewards it will get loyal customers, not the ones who sign up simply for the rewards and then move on to the next loyalty card.