The Chase Freedom is one of the best cards for maximizing your earnings potential. When you unlock the Chase Freedom, you will gain 5% back on up to $1,500 . This is in combination with bonus category transactions per quarter. You’ll need to know which purchases can win bonus points to make the most out of this credit card. Also, ensure to make these purchases primarily with your Chase Freedom.
People consider Chase Freedom a cashback credit card. But, you can pass rewards received on your Chase Freedom to Chase Ultimate Rewards points if you have a Chase Ultimate Rewards earning card — the Chase Sapphire Preferred Card, the Chase Sapphire Reserve, or the Ink Business Preferred Credit Card. You practically double your earnings by doing so. Every fifth month, you can get a 10% bonus on up to $1,500 in bonus category transactions.
Is the chase freedom card for you?
Are you a newcomer to the world of rewards? Then add a Chase Ultimate Rewards-earning card to your pocket. You can earn cashback that you can convert to Chase Ultimate Rewards points. Adding this credit card to your collection might also help you complete the Chase quartet. Just be aware of the issuer’s 5/24 law which may prevent you from opening new Chase cards. This is only if you’ve opened five or more accounts with other issuers in the previous 24 months.
You can keep a track of your spending to get the most out of a credit card. For this, the Chase Freedom’s rotating bonus categories are ideal for you. But, If you don’t usually spend money in the card’s revolving categories, or if you don’t have the time or inclination to track category spending, the Chase Freedom might not be a good fit for you. In such cases, you might want to check out other cards we have reviewed here. So, now you have the information you need to make an informed decision.
Bonus for new cardholders
Since it pays a sign-up bonus and has no annual charge, the Chase Freedom is an excellent first credit card. The reward isn’t as generous as some cards with high annual fees. But, it’s adequate for a card with no yearly charge. You can move the bonus to a Chase account that is part of the Ultimate Rewards scheme. This allows you to turn it to points (20,000) and increase the sign-up bonus value. The value of those points is $400.
For the first 15 months after account opening, new cardholders will get a 0% promotional APR on transactions and balance transfers. After that, the regular rate is a variable APR of 14.99% to 23.74% after the intro phase ends. In addition, when you move a balance within the first 60 days of your account’s life, you’ll pay an introductory balance transfer charge of $5 or 3% of the transfer amount (whichever is greater) (then $5 or 5%). These make this credit card very effective.
Present Chase Freedom cardholders and past Chase Freedom cardholders who have earned a bonus in the last 24 months are not eligible for the sign-up bonus. This is due to Chase’s controversial 5/24 rule. It states if you’ve opened five or more accounts across all issuers in the previous 24 months, you’ll almost certainly be automatically disqualified for the pass. This can be the only drawback of this credit card to some people.
Let’s talk benefits
For a credit card with no annual charge, the Chase Freedom offers some excellent benefits. Like the 5 percent earning on up to $1,500 spent in rotating bonus categories per quarter. It is also the reason most cardholders add it to their pocket. Thus it is evident, why this credit card is in such high demand. It also explains why people prefer it over so many other cards that are available to them.
When your trip doesn’t go as planned, the Chase Freedom provides some travel protections. These can save you a lot of money and hassle. For example, you can pay for a car rental with your credit card in full. There will be chances of compensation by an auto rental crash injury waiver, secondary in the United States but primary in other countries. You can also pay for pre-paid, non-refundable passenger tickets with your passport. Travel cancellation and interruption insurance worth up to $1,500 per person and $6,000 per trip will protect you and your family.
If a recent purchase made with your credit card is ruined, the Chase Freedom provides two shopping protections. First, purchase insurance can cover your new purchases for up to $500 per claim and $50,000 per account for up to 120 days against damage or theft. Second, on eligible warranties of three years or less, extended warranty protection may extend the time period of a U.S. manufacturer’s warranty by an additional year.
Redeeming points with the Chase Freedom card
If you use your Chase Freedom credit card to earn points, they’re usually worth 1 cent each when exchanged for cash back, gift cards, or travel. You can also use your points for a statement credit to cover all or part of a Chase Pay transaction or an Amazon Shop with Points purchase, but these options only have a 0.8 cents per point redemption value, so we don’t suggest them. One exception is if you are targeted for Amazon Shop with Points semi-frequent promotions, in which you can get a discount if you redeem at least one point.
You can combine the Chase Freedom with a Chase credit card that participates in the Ultimate Rewards program. This almost doubles the annual redemption value of your rewards. This is because when you pass your Chase Freedom rewards to another card, they become Ultimate Rewards points. The Chase Sapphire Preferred Card, Chase Sapphire Reserve, and the Ink Business Preferred Credit Card are all eligible for the Ultimate Rewards program.
The Chase Freedom credit card is handy due to the quarterly 5x bonus categories. If you already have an Ultimate Rewards card, you should seriously consider adding the Chase Freedom to your pocket. It can boost your quarterly bonus earning potential. If you’re thinking about getting an Ultimate Rewards card in the future, the Chase Freedom and Chase Freedom Unlimited cards could be a good option. You can build up points on these no-annual fee cards and then pass them to your Ultimate Rewards card later.