Chase Card Services, a division of JPMorgan Chase & Co. has partnered with AARP to offer a new rewards credit card to the organization's members. With this card, cardholders will be able to earn cash back on purchases, but they won't have to pay an annual fee.
The AARP Visa Signature card is available to those AARP members who have a valid U.S. address in the 50 states and the District of Columbia and qualify for the card's terms.
The card's cash back rewards are designed to give cardholders a bonus when they use the card to make everyday purchases. The card offers three percent back on purchases made at restaurants and gas stations, and one percent cash back on all other purchases.
"The new credit card for AARP members is designed to make life more rewarding for our customers," said Ralph Pinto, senior director, Chase Card Services, in a statement. "By providing cash back to customers on gas station and restaurant purchases that they're regularly making, we've built one of the most rewarding credit cards for everyday expenses."
Chase estimates that the average family using this card can get over $250 back a year, based on data from the U.S. Energy Information Administration and the U.S. Bureau of Labor Statistics that says each year the average household spends about $3,000 at gas stations, $2,600 at restaurants and over $8,000 on groceries, apparel and entertainment.
The card's rewards are structured in the form of points, which a cardholder can redeem for cash back. One percent cash back is worth one point, or conversely, 1 point is worth a penny. That means that if a cardholder accumulates 5,000 points, he can redeem it for a $50 check. Cardholders can also redeem points for travel, gift cards and merchandise. Chase doesn't put restrictions on the amount of cash back, nor does it set expiration dates on points earned.
Unlike other rewards credit cards that have higher rates of cash back for certain categories of purchases, cardholders of the AARP card do not have to opt in to special offers in order to earn the higher rate of rewards.
The Chase AARP card also currently has a bonus offer where new cardholders can earn 10,000 bonus points--which translates to a $100 rewards check--for making $500 or more in purchases within the first three months of opening an account. Balance transfers, cash advances and using checks that access the account do not apply toward this bonus offer.
Additionally, the card offers a 0% APR on purchases and balance transfers for the first 12 billing cycles after the account is opened. After that introductory rate expires, the APR for purchases is 16.24% and varies with the market based on the Prime Rate. The introductory rate may also be cancelled if the cardholder makes any required minimum payment that is 60 days late. In those cases, Chase will apply a Penalty APR of 29.99%, which varies with the market based on the Prime Rate.
The Penalty APR will also apply to cardholders who don't make any minimum payment by the due date and time or exceed their credit limit or make a payment that is returned unpaid. Once the Penalty APR is applied to an account, it will remain there indefinitely.
The card includes other benefits too. Customers who redeem rewards for travel through Chase can get a ten percent discount. The card also offers various free price, purchase, return and extended warranty protections.
AARP is an organization for Americans over 50. It advocates for its members in terms of health care, employment security and retirement planning. It also strives to create value for its members by offering a wide range of discounts on products and services.