Chase Freedom® Credit Card Review
In the world of cash back credit cards, there was a time when 1% was the gold standard. Those days are long gone. Now you have cards that are offering up to 3% back on everyday purchases. But even that’s not the most impressive offering. Today, 5% is king.
The Chase Freedom® card offers its card members 5% cash back on rotating quarterly categories. It’s because of this that the card is one of the most popular cash back credit cards available today. Before you apply, here are some things to know.
What You Get
To get people excited about the Chase Freedom® card, Chase offers its new card members a $150 cash back bonus after spending just $500 within the first three months. This is a pretty generous bonus for a no annual fee credit card.
Where this card really starts to get exciting is with their cash back on spending. Each quarter there will be a new set of shopping categories that will be eligible to receive 5% back. This will be good on up to $1,500 each quarter.
In order to receive the 5% cash back, Chase requires their cardholders to activate the spending bonus each quarter. Cash back rewards accrued with the Chase Freedom® card are actually done with Chase Ultimate Reward points. Each point earned is worth one cent and Chase requires 2,000 points before you can cash out.
If you also have a Chase Sapphire Preferred® card in your wallet then you have even more options for your points. You can use your points to book travel through Ultimate Rewards at a 20% discount. You can also transfer your points to one of the many hotel and airline partners. A few of them include: Hyatt, United Airlines, Marriott, and Southwest Airlines.
Other than the stores that can earn 5% cash back, you will also earn 1% back on any other purchase. If you will be transferring a balance from another credit card then there is a balance transfer fee of 5% or $5 whichever is greater.
Another feature that is popular with a lot of cardholders is their price protection guarantee. If you purchase something with the Chase Freedom® card and you find it for a lower price within the first 90 days, then Chase will give you back the difference, up to $500 per claim and $2,500 per calendar year. This is a great benefit for a card that doesn’t have an annual fee.
What You Don’t Get
For a credit card that doesn’t have an annual fee, this is one of the best. However, there are a couple of smaller features that it does lack. If you frequently find yourself traveling outside of the United States, you might be disappointed that you will be charged a 3% foreign transaction fee when using your Chase Freedom® card.
Also, there have been quite a few cash back cards that have started offering a free monthly FICO score as a standard feature. Unfortunately, the Chase Freedom® card is not one of those. It’s likely that they might add it in the future, but that is uncertain.
The Bottom Line
In the world of cash back cards, you have those that are average, and then you have a couple that stand out above the rest. The Chase Freedom® card is one that stands out. While its flat 1% cash back isn’t exciting, the ability to earn 5% cash back on different categories each quarter certainly is. If you are in the market for a new cash back credit card to add to your wallet then the Chase Freedom® card should be at the top of your list.
Editorial Note: The information related to Chase Freedom® Card has been collected by Credit Cards House and has not been reviewed or provided by the issuer of this card.
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Editorial Note: Any opinions, analyses, reviews or recommendations expressed in this article are those of the author's alone, and have not been reviewed, approved or otherwise endorsed by any card issuer.