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What makes the Chase Freedom® so great is that each quarter they have a different category where you earn 5% cash back. You earn the 5% cash back on up to $1,500 of spend in the bonus categories each quarter.
The categories for 2015 have just been announced.
These are similar to the 2014 categories, and I’m especially excited to see restaurants back in the second quarter. I eat out nearly constantly, so getting 5x points on dining is a great deal!
What makes the Chase Freedom great
So what makes this no annual fee card so rewarding even if you have other cards with annual fees that offer category bonuses?
The Chase Freedom offers 5% cash back (five points) per dollar spent on rotating quarterly categories, which can translate into a huge return. When you register your card each quarter you then earn 5x points for the first $1,500 spent in those category.
Having no annual fee cards are great for your credit score
As if the huge rotating quarterly categories weren’t enough, keep in mind that one part of your credit score is the average age of your accounts. It’s good to keep some cards long term just to help increase the average age of your accounts, even if the card itself isn’t that rewarding.
In this case you’re getting a rewarding credit card which you can also keep open long term to help build your credit score.
You can convert cash back into Ultimate Rewards points
Just to recap, you earn points on the Chase Freedom®, and each point can be redeemed for one cent cash back.
However, if you have this card in addition to one of the cards that accrue “premium” Ultimate Rewards points, you can transfer these points to Ultimate Rewards. Cards that accrue “premium” Ultimate Rewards Cards include the:
So 5% cash back converts into 5x Ultimate Rewards points per dollar with one of the above cards.
The current sign-up bonus is double the usual offer
Back in the day this card regularly had 20,000+ point sign-up bonuses. But over the past couple of years the standard sign-up bonus has been $100 cash back/10,000 points.
We’ve occasionally seen increased sign-up bonuses of $200 cash back/20,000 points. But with this bonus you can earn $225 cash back/22,500 points, which is the best I’ve seen.
If you don’t yet have the Chase Freedom®, it’s absolutely worth adding to your card portfolio. I picked up the card late last year after waiting way too long, and am really happy to have it. Leveraging the bonus categories has resulted in thousands of additional points each year, so it’s a bit of a no-brainer for me.
What do you think of the 2015 categories?