Leave it to the bankers to get you locked into massive debt. According to this Market Watch report, Chase is ready to reward you with 100,000 credit card points for taking on a 30-year mortgage.
This has to be one of the most expensive ways to pick up some credit-card points.
Chase JPM, +0.52% announced Monday it is offering 100,000 Chase Ultimate Rewards points to its customers who have Sapphire, Sapphire Preferred or Sapphire Reserve credit cards — if they open a mortgage with Chase. The offer will be available through August 6 to customers who had any Chase Sapphire card as of May 7.
Chase’s credit cards have been popular in recent months, particularly the Sapphire Reserve card, which debuted in 2016 and initially offered a 100,000-point sign-up bonus, which was later reduced to 50,000 points. Credit card experts estimate some 900,000 people signed up for that card between September 2016 and November 2016. (Chase has declined to confirm that number.)
As a result, J.P. Morgan chief executive Jamie Dimon said in December the Chase Sapphire Reserve credit card reduced the bank’s profit by $200 million in the fourth quarter, to $300 million. Now, Chase is attempting to capitalize on the young consumers it captured with that card.
Half of Chase Sapphire customers are millennials, who may be looking to buy their first home soon, said Pam Codispoti, the president of Chase Branded Cards, in a statement. And customers under age 35 made up 36% of Chase’s mortgage originations in 2016, up from 20% in 2015, a spokeswoman for the bank said.