Chase Freedom

For just about anything you want to get off your chest about credit cards.
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Tubpbs
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Chase Freedom

Postby Tubpbs » Tue Jun 07, 2016 9:03 pm

I was just thinking about it...there is all this talk about Chase nixing the Freedom eventually and going to Freedom Unlimited. I have been browsing their products and it struck me: they still have the $150 sign up bonus for both cards. They could easily remove the bonus for Freedom and justify it by saying they want everyone to sign up for their new card, the Freedom Unlimited.

While I do agree that, long term, it makes sense that they will chop the card, but then why encourage applications? It can't take too many months of evaluating applications before they know or think they know if it's safe to drop the regular Freedom.

Anyway, food for thought.

I think they make plenty of money on the card (as does Discover). Plenty of people use it as their everyday card / only card and more than plenty of people pay interest monthly. (There is some decent portion of people who have no idea that you're even able to avoid paying interest and / or that the idea of a credit card isn't to run a balance and pay interest. I know several intelligent, capable, competent people who behave this way - some don't care, some don't know, some are in between).

Idea concluded. Let me know your thoughts.
Amex - BCP, Platinum, Business Gold
BoA - BankAmericard Cash Rewards
Chase - Freedom, CSP, RC, Ink Plus
Citi - DC, Prestige
Discover - It


To My Credit
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Re: Chase Freedom

Postby To My Credit » Tue Jun 07, 2016 9:11 pm

Tubpbs wrote: (There is some decent portion of people who have no idea that you're even able to avoid paying interest and / or that the idea of a credit card isn't to run a balance and pay interest. I know several intelligent, capable, competent people who behave this way - some don't care, some don't know, some are in between).
I was recently in conversation with one of my friends about credit cards and he was under the impression that you had to leave a balance and pay interest; or else why would the credit card company want to do business with you? And this is a smart guy with a high-paying job.

I think we often look at this from a forum-centric point of view while the fact of the matter is that the vast majority of customers aren't as meticulous or nerdy about this as we are. Given that Chase Freedom is one of the most popular credit cards out there, I'm sure Chase is seeing a good profit from the business it's getting them.
Current cards: BankAmericard CR, BankAmericard BBR, Citi Double Cash, Chase Freedom, AmEx BCE, Discover It
Wishlist: US Bank Cash+

kdm31091
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Re: Chase Freedom

Postby kdm31091 » Tue Jun 07, 2016 9:28 pm

I do agree that most consumers don't give a second thought to maximizing rewards and they just use whatever card they have. So I don't think there's that many people using only the 5% categories, relatively speaking.

I just think the rumor to eventually kill the product has more to do with consumer tastes than anything. Because of the fact that most consumers do not want to be bothered with maximizing rewards, the flat structure appeals to people. So I think that's more the reasoning to move away from the 5% thing, along with profitability of course. It's a win win for Chase and consumers in their eyes -- flat rate card, still make a profit, no consumer confusion about categories.

To My Credit
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Re: Chase Freedom

Postby To My Credit » Tue Jun 07, 2016 9:38 pm

kdm31091 wrote:I do agree that most consumers don't give a second thought to maximizing rewards and they just use whatever card they have. So I don't think there's that many people using only the 5% categories, relatively speaking.

I just think the rumor to eventually kill the product has more to do with consumer tastes than anything. Because of the fact that most consumers do not want to be bothered with maximizing rewards, the flat structure appeals to people. So I think that's more the reasoning to move away from the 5% thing, along with profitability of course. It's a win win for Chase and consumers in their eyes -- flat rate card, still make a profit, no consumer confusion about categories.
I'll be honest, when I first applied for Discover It, I didn't know a thing about credit cards. I basically applied for it because a friend suggested it and 5% cashback looked attractive. I'm pretty sure I didn't even activate anything for the first couple of quarters. Now, I'm not saying most customers are like I was, but having the 5% thing is what partly attracted me, and they didn't even have to give me 5% cashback on anything for quite a few months. And I know that one or two of my friends didn't think of activating their Discover until I told them it was restaurants this quarter, either.

That considered, wouldn't it be in their interest to continue the card? 5% cashback stands out enough that it will attract customers, and many people don't even activate their rewards every quarter. Sounds like a winning formula to me. And it's not like they're misleading people. People are just lazy.
Current cards: BankAmericard CR, BankAmericard BBR, Citi Double Cash, Chase Freedom, AmEx BCE, Discover It
Wishlist: US Bank Cash+

Tubpbs
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Re: Chase Freedom

Postby Tubpbs » Tue Jun 07, 2016 10:11 pm

To My Credit wrote:
Tubpbs wrote: (There is some decent portion of people who have no idea that you're even able to avoid paying interest and / or that the idea of a credit card isn't to run a balance and pay interest. I know several intelligent, capable, competent people who behave this way - some don't care, some don't know, some are in between).
I was recently in conversation with one of my friends about credit cards and he was under the impression that you had to leave a balance and pay interest; or else why would the credit card company want to do business with you? And this is a smart guy with a high-paying job.

I think we often look at this from a forum-centric point of view while the fact of the matter is that the vast majority of customers aren't as meticulous or nerdy about this as we are. Given that Chase Freedom is one of the most popular credit cards out there, I'm sure Chase is seeing a good profit from the business it's getting them.


I 100% agree with your (and ultimately my) point, but at the same time, with no education, instruction or otherwise about credit or credit cards, when I was 18 I figured out within one statement that I didn't have to pay interest if I paid my bill on time and in full. Not everyone is the same, but it wasn't from this forum, it was from informing myself and common sense I would say. But most of this info is irrelevant. I just thought the point that I figured it out on my own with no info immediately. I think a lot of it is a classic scenario of people listening to what everyone else says and not checking for themselves or thinking about things logically.
Amex - BCP, Platinum, Business Gold
BoA - BankAmericard Cash Rewards
Chase - Freedom, CSP, RC, Ink Plus
Citi - DC, Prestige
Discover - It

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Vattené
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Re: Chase Freedom

Postby Vattené » Fri Jun 10, 2016 10:51 am

Tubpbs wrote:I 100% agree with your (and ultimately my) point, but at the same time, with no education, instruction or otherwise about credit or credit cards, when I was 18 I figured out within one statement that I didn't have to pay interest if I paid my bill on time and in full. Not everyone is the same, but it wasn't from this forum, it was from informing myself and common sense I would say. But most of this info is irrelevant. I just thought the point that I figured it out on my own with no info immediately. I think a lot of it is a classic scenario of people listening to what everyone else says and not checking for themselves or thinking about things logically.

I had the exact same experience. I didn't want anything to do with credit cards. My parents are pretty financially conservative and never used them; all I knew was they charged high interest rates, so why would I use a credit card for anything unless I couldn't afford to pay for it? I didn't know anything about grace periods until I got my first store account. Once I actually had an account on my own, it was obvious how it really worked.
-Vattené
FICO-8:
EX - 809 (11/16) | TU - 803 (11/16)
Primary Cards:
American Express EveryDay - $20,000 (10/14)
Discover it - $23,000 (2/14)
AU on Barclay Sallie Mae - $10,000 (8/15)
plus several store accounts of varying usefulness now

Kevin86475391
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Re: Chase Freedom

Postby Kevin86475391 » Sat Jun 11, 2016 9:06 pm

I agree that the fact that they're still offering a signup bonus on the regular Freedom does seem to indicate that they're still trying to entice people into signing up and thus aren't ready to axe it in the near term.

I certainly hope that if/when it is axed they still allow existing card members to have it for a nice long time before forcing a PC. I love my Freedom card but have absolutely no use whatsoever for the Freedom Unlimited.

Tubpbs
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Re: Chase Freedom

Postby Tubpbs » Sat Jun 11, 2016 9:19 pm

Kevin86475391 wrote:I agree that the fact that they're still offering a signup bonus on the regular Freedom does seem to indicate that they're still trying to entice people into signing up and thus aren't ready to axe it in the near term.

I certainly hope that if/when it is axed they still allow existing card members to have it for a nice long time before forcing a PC. I love my Freedom card but have absolutely no use whatsoever for the Freedom Unlimited.


Truthfully, I would also say the sign up bonus could mean anything or the opposite of my initial thought.

If I were Chase, and I wanted to get a nice even, unhindered sample over a good period of time on applications of Freedom vs. Freedom Unlimited, I would leave the sign up bonus so as to know change any other factors.

We'll see. Eventually.
Amex - BCP, Platinum, Business Gold
BoA - BankAmericard Cash Rewards
Chase - Freedom, CSP, RC, Ink Plus
Citi - DC, Prestige
Discover - It



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