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Chase Freedom

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The Freedom card is Chase’s version of the “5% cash back” cards, which pay bonuses of 5% cash back on  categories that rotate each quarter. The other two competitors are the Discover More and the Citibank Dividend Platinum Select.

Each of these three cards tend to have similar rewards program structures, and they each offer roughly the same bonus categories each quarter.  Plus all three require that cardholders sign up at the beginning of each quarter, in order to earn these bonuses.

But where the Freedom stands out from the competition is that it pays an unlimited 1% on all purchases, rather than requiring a user to hit a spending minimum first (like with the More). And it has the highest cap on bonus rewards – up to $1,500 in spending each quarter – while the Dividend caps total annual rewards at $300.

Below is the calendar of bonus categories for 2011:

  • Jan – Mar: Grocery and drug stores.
  • Apr – Jun: Home improvement, lawn & garden, and home furnishings.
  • Jul – Sep: Gas, hotels, and airlines.
  • Oct – Dec: Dining, department stores, movies, and charity.

Although we often gripe about how these cards require users to proactively “opt in” to their rewards each quarter, Chase allows users to sign up retroactively, and still earn the rewards.

And right now, Chase is also offering a new $150 signup bonus that makes the card a lot more appealing.

 

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  • Tina

    This happened to me! A lot of purchases I made at restaurants in Manhattan, as well as on various Airline tickets were mis-categorized and I got jipped out of my rewards.

  • John

    I was converted to the Chase Freedom Plus card a while ago and it seems to still be a good card. It works on the top 6 bins without bin caps that they implemented a while back. There's an annual fee of $40-50 but in my case, I easily recouped that in a month or two on rewards "gains" from the extra bins and cap removal. I seem to still have the $250 check option as well which is the entire reason I got this card to begin with. For those interested, this seemed to be worth it if you were spending around $1200 /mo. on the card. As a long time user, I have to say I've been extremely annoyed at all the changes that have gone on with this program but it still seems like the best card for me with the Plus version.

    • tom

      It also asked $30 reward fee/year.

  • Ed S.

    Yes, they are now asking for a $30/yr reward fee on my card too. But I have switched to their non-cash rewards card (which supposedly you can still redeem for cash) which has no annual fee. Someone at NerdWallet needs to update their annual feels for that card.

    • http://intensedebate.com/profiles/nerdwallet nerdwallet

      Yep, the $30 annual fee is a reward fee for the "Plus" version of the card which offers a slightly better reward earn rate (otherwise known as the Chase Freedom Ultimate Rewards Plus card). We don't list this version of the card because it is only offered to existing Chase checking customers. This is also why you won't find it on the Chase website.

      The standard version of this card that we have listed here has no annual fee.

  • Jennifer

    How do you get the cash? Direct deposit, credit to your account or a check? Do you have to ask for it? Or it is automatic?

    • http://intensedebate.com/profiles/nerdwallet nerdwallet

      Hi Jennifer, this is another reason we find this card to be kind of annoying. They claim it is a "cash back" card, but unlike other cash back cards, you don't get the money direct deposited or automatically applied to your statement. You have to go to their rewards portal and actively redeem your points.

      In this way, they will try to persuade you to exchange your points for things like vacations or gadgets where the point value will be significantly lower, but you can also choose to redeem for checks and gift cards at a reasonable valuation.

  • Jennifer

    Thanks for your quick reply.

    I just applied for one, though. I guess I will have to cancel it when I get the card, because straight & simple is the No. 1 priority for me. If it is cash back card, it should be a cash back card. No vacation or gadgets or persuation. I will make my own decision what to do with the cash.

    The reason I am searching for a good simple cash back card is that I have been fed up with my current card reward issues. On the face of card, it is Banana Republic visa card, actually it is a GE Money Bank card. The two do not speak the same language when the rewards are concerned. You have to call both sides, multiple times, for a simple reward quesion. And by the the end of the day, the problem still stays unsolved. I want to get rid this card as soon as possible and find a better one. Any suggestions? I heard about Citi Dividend card. Does nerdwallet have any comment on this card?

    • http://intensedebate.com/profiles/nerdwallet nerdwallet

      I wouldn't recommend that you cancel the Freedom if you've already applied. Applying for and canceling too many cards will leave a negative mark on your credit history. Plus, you can exchange your Freedom rewards for cash (I believe they'll mail a check), which is why they call it a "cash back" card, it's just not automated for you.

      If you really don't want to deal with that, we have plenty more cash back cards here: http://www.nerdwallet.com/cash-rewards-credit-car….

      The Citi Dividend is a student credit card you can find here: http://www.nerdwallet.com/card-details/card-name/…

  • Jennifer

    Thanks for your advice. I have been great.

    I think I will use Freedom for a couple of months and see how it goes.

    • http://intensedebate.com/profiles/nerdwallet nerdwallet

      Glad to help. Best of luck!

  • Adam

    I signed up for this card last week and just received it. None of the information that I received with the card indicated anything about the $100 cashback promotion however. When I contacted Chase, they said that the promotion wasn't valid and the link above most likely pointed to an expired deal. It took arguing with them to get the promotion reinstated.

    • nerdwallet

      Thanks Adam, the $100 promo isn't universal. If you sign up through one of the deals on our site that says "$100 cashback", though, you should get it.

      Hope it all worked out for you!

  • CONNYE STILL

    What does net annual reward of an amount mean instance $338.00 of cash. Is that the amount only paid for the year.

    • http://www.nerdwallet.com NerdWallet

      Hi Connye, the net annual reward is our estimate of how much you can expect to earn each year in rewards. We take into account some basic information about your spending habits and your intended holding period (all from the left sidebar), then we subtract out any annual fees to calculate how much you should expect to earn.

  • Card shopper

    Does this card report a credit limit to the credit bureaus?

    My current reward cards have morphed into ‘unlimited spending’ and even though there is a ‘credit line’ reported on the statements it seems they don’t report that number to the bureaus so my credit utilization is getting hammered.

    I requested a ‘downgrade’ to a card with a credit bureau reported limit but have been told this means losing the rewards feature.

    • http://www.nerdwallet.com NerdWallet

      Yes, this card is a standard MasterCard with a spending limit, and it does report to credit bureaus.

      In general, keep an eye out for anything that says “World MasterCard” or “Visa Signature,” since these are the two that typically don’t have preset spending limits, and don’t report a credit utilization to the bureaus.

      Also note that card issuers have to give you 45 days’ notice before changing anything in your card holder agreement, so you should get a warning if they ever decide to change it.

      Good luck!

  • Ryan

    Considering this card and it looks pretty good even for me who doesn’t usually spend a lot per month. The rewards would be pretty minimal which is why hearing about this $30 Reward Fee is turning me off from it a bit.

    When I went to the application, nothing about a rewards fee shows up in the Pricing and Terms. Did I find the application for the non-Plus version of the card or are they just going to hit me with that later?

    • http://www.nerdwallet.com NerdWallet

      Hey Ryan, the version of the card shown on our site charges no such fee.

      The Plus version is only offered to certain pre-existing users, so if they ever offer to “upgrade” you to the Plus version, just say no.

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