Chase Freedom Credit Card Review

January 31, 2012 No Comments »
Chase Freedom Credit Card Review

Today we’ll take a closer look at the “Chase Freedom credit card,” which is probably the card issuer’s most popular credit card at the moment.

First and foremost, Chase Freedom is a cash back credit card with no annual fee, which is its biggest draw. And my favorite combination.

Chase Freedom 1% Cash Back

You earn 1% cash back on all purchases (1 point per $1 spent) with no minimum annual spend and no maximum to how many points you can earn. Oh, and points never expire.

You also get an additional point for every dollar spent on airfare purchased through the company’s online booking tool.

The only thing you don’t earn cash back on is balance transfers, cash advances, money orders, and traveler’s checks.

Chase Freedom 5% Cash Back

cash back categories

On top of the everyday 1% cash back is 4% more cash back in rotating categories. Every three months new categories are unveiled that allow you to earn a total of 5% cash back.

Categories include things like gas, groceries, restaurants, and more. So cardholders may want to use the Chase Freedom credit card at certain places during specific times of the year to maximize their cash back.

The only drawback here is that the 5% cash back is not unlimited. It’s maxed out at $1,500 per category, per quarter.

So really the max bonus cash you can earn is $60 per quarter. That’s taking the 4% bonus amount on top of the 1% you already get for purchases 365 days a year.

Additionally, you have to “activate the cash back” each quarter in order to get it. It’s not hard to do, but you still need to remember to visit the website and enter some pertinent details every quarter.

You can also earn 10% cash back when shopping with select merchants, such as Kohl’s,, and many others, online via Chase’s Ultimate Rewards portal.

So $50 in spending will net you $5 cash back. Not a bad deal at all if you already shop with the participating merchants.

And you can redeem your points for discounted gift cards to places like Starbucks and Amazon, which allows you to maximize your points that much more.

For example, redeem 4,500 points for a $50 Starbucks gift card.

Chase Freedom $200 Cash Back Bonus

Speaking of cash back, you can get another $200 cash back from Chase Freedom if you spend just $500 in the first three months from account opening.

20,000 bonus points = $200 cash back

That’s a very low spend requirement that I would guess most people could pull off with little trouble, even the most frugal credit card holders.

Keep in mind that there are a lot of offers and links out there that only come with $100 bonus cash back.

There is one difference though. The $200 cash back offer doesn’t come with introductory 0% APR. The credit card APR starts at a variable 12.99% to 22.99%.

Update: There is also a $100 cash back bonus offer, which comes with 0% APR for 15 months on both purchases and balance transfers.

But with the 3% balance transfer fee, it’s not the best credit card for balance transfers. (See the Slate No Fee Balance Transfer for more on that).

The Verdict on Chase Freedom

Overall, the Chase Freedom credit card is a great choice for someone looking to maximize their cash back without being subject to an annual fee.

And with so many opportunities to get bonus cash, along with the numerous redemption options available, it’s hard to beat this credit card.

It also comes with Blueprint technology, just like the Chase Slate credit card, which helps cardholders manage their spending and pay down balances more efficiently.

However, the rotating cash back categories can be a bit of a drag, especially if the chosen categories don’t appeal to you.

So it’ll probably make sense to carry an everyday cash back credit card to supplement the Freedom card.  Options include the American Express Blue Cash card or the Bank of America Cash Rewards credit card. Both offer cash back year-round without the need to sign-up.

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