Charles H. Miller
The Chase Freedom card is designed for savvy shoppers who don’t want to leave any money on the table. It offers 5% cash back on categories that change each quarter, as well as 1% on all other purchases. Also, the card comes with a 0% introductory APR for the first 15 months, and has no annual fee. Read on for more details…
Highlights
- Up to $175 sign-up bonus
- 5% cash back on rotating categories for up to $1,500 in combined purchases each quarter, unlimited 1% cash back on other purchases.
- 0% intro APR on purchases and balance transfers for the first 15 months, after which APR goes up to 14.24%-23.24%.
- 5% balance transfer fee
- No annual fee
How It Works?
Cash back: The main idea of this card is to get you a portion of what you spend — back. You get to earn 5% cash back on rotating categories that must be activated every quarter. There’s a cap of $1,500 for combined purchases per quarter, after which you earn 1% cash back. The same percentage (1%) applies to all other purchases (those not covered by specified categories). Speaking of categories, they can include groceries, department stores, gas, and others. Also, you can earn even more cash back if you shop online through Chase Ultimate Rewards.
Points: Cash back is actually awarded as points with 100 points equal to $1. You can redeem at 2,000 points for cash back in the form of statement credit or electronic deposit into a checking or savings account. Or, you can use these points to purchase gift cards, travel, and merchandise. This can come in especially handy for those already owning some other Chase card.
Sign up bonus: Chase is offering $150 to new customers after they spend $500 on purchases within the first 3 months of opening the account. Adding a first authorized user and making a first purchase within the same period will get you an additional $25.
APR: 0% intro APR on purchases and balance transfers for the first 15 billing cycles. After that, APR goes up to 14.24%-23.24% based on your creditworthiness. There is a 5% balance transfer fee.
No annual fee: Chase wants you to use this card for everyday items, and wants as many customers as possible (so it doesn’t include an annual fee).
Shopping perks: Purchases made with the Chase Freedom card are covered against damage or theft for 120 days, up to $500 per claim and $50,000 per account. Also, you are covered against any changes in the price within 90 days, with Chase chipping in for the price difference, up to $500 per item and $2,500 per year.
Costs
- $0 Annual Fee
- 0% intro APR for 15 billing cycles, after which APR goes to 14.24%-23.24%
- 5% Balance Transfer Fee ($5 minimum)
- 3% Foreign Transaction Fee
Pros
- Sign-up bonus that is easy to reach. $500 in the first 3 month is attainable for just about everyone.
- 15-month 0% introductory APR on both purchases and balance transfers. You can use the Chase Freedom card to save on interest payments from some other card (even though it’s not its key selling point).
- 5% cash back makes this card an easy sell. Yes, you’ll have to keep an eye on those rotating categories, but it’s well worth the effort.
- Additional benefits for current Chase cardholders who may be collecting points for travel. You can combine all those points into a single pool to redeem for more expensive items.
Cons
- Activating bonus categories – Chase will remind you to activate bonus categories but we would love this process to be fully automated.
- The 3% foreign transaction fee doesn’t make Chase Freedom the card you’ll want to carry on your travels.
Is This The Card For You?
Chase Freedom is a credit card designed primarily for domestic use. If you can keep up with rotating categories (and it’s really not that hard), you can get a portion of the money you would be spending anyway — back. New cardmembers will also benefit from a sign-up bonus worth up to $175, as well as a 0% APR for the first 15 months. If that’s something you find appealing (and it’s a rather nice offer), click the link below and take it from there.
