chase credit cards

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charged
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chase credit cards

Postby charged » Sat Jul 30, 2016 12:54 am

Why doesn't Chase just combine the Chase Freedom and their new Chase Freedom unlimited into a single card

the 5% rotating categories of the Chase Freedom plus the 1.5% cash back on everything else as in their new cards.
It seems like this would be simpler if they are willing to give out both bonuses anyway and the cardholder wouldn't have to be inconvenienced of juggling through both cards and deciding which card gives the best deal for their purchase.


kdm31091
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Re: chase credit cards

Postby kdm31091 » Sat Jul 30, 2016 9:19 am

Because Chase is trying to convince people to sign up for the 1.5% instead of signing up for Freedom with 5%. They've buried the 5% version on the website. Yes, it's still there, but it's clear they want to direct people to the Unlimited.

5% categories are basically a loss for banks, and even more so with Chase since they are UR points and can be redeemed for even higher value if you have CSP. Most people agree that the 5% Freedom will probably eventually be going away with the Unlimited taking its place. Many 5% cards have come and gone over the years. Either they've been discontinued completely (Citi Dividend), or watered down (Cash+, even Discover to a small degree).

If you are using the Freedom for all purchases, chances are you are averaging a 1.5% return anyway, assuming at least some of your spend is in the 5%. So it probably doesn't make too much of a difference, but some just prefer the flat rate.

So I would not expect a combined product; if anything, I anticipate the original Freedom will eventually be phased out.

charged
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Re: chase credit cards

Postby charged » Sat Jul 30, 2016 12:20 pm

kdm31091 wrote:Because Chase is trying to convince people to sign up for the 1.5% instead of signing up for Freedom with 5%. They've buried the 5% version on the website. Yes, it's still there, but it's clear they want to direct people to the Unlimited.

5% categories are basically a loss for banks, and even more so with Chase since they are UR points and can be redeemed for even higher value if you have CSP. Most people agree that the 5% Freedom will probably eventually be going away with the Unlimited taking its place. Many 5% cards have come and gone over the years. Either they've been discontinued completely (Citi Dividend), or watered down (Cash+, even Discover to a small degree).

If you are using the Freedom for all purchases, chances are you are averaging a 1.5% return anyway, assuming at least some of your spend is in the 5%. So it probably doesn't make too much of a difference, but some just prefer the flat rate.

So I would not expect a combined product; if anything, I anticipate the original Freedom will eventually be phased out.


That makes perfect sense now. Do you think people that already possess a Chase Freedom card will be grandfathered and be allowed to continue to use the card with the 5% categories even if they stop distributing new cards?

I did notice that even though the Discover IT has the 5% categories, they weren't impressive enough to consider the card. Home improvement stores, really? Groceries and restaurants are the big 2 that I'd want to see in the categories. If not then the flat rate is better.

To My Credit
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Re: chase credit cards

Postby To My Credit » Sat Jul 30, 2016 5:40 pm

kdm31091 wrote:Because Chase is trying to convince people to sign up for the 1.5% instead of signing up for Freedom with 5%. They've buried the 5% version on the website. Yes, it's still there, but it's clear they want to direct people to the Unlimited.
I'm not sure if that's the case, because they are still offering the $150 bonus on the Freedom. You'd think that if they were planning on discontinuing it, they'd stop giving out the bonus to discourage people from applying for it. I think it's just a case of the Freedom already being a very popular card that everybody knows about and them wanting more people to know about and get the newer Freedom Unlimited.
Current cards: BankAmericard CR, BankAmericard BBR, Citi Double Cash, Chase Freedom, AmEx BCE, Discover It
Wishlist: US Bank Cash+

yfan
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Re: chase credit cards

Postby yfan » Sat Jul 30, 2016 7:13 pm

charged wrote:Why doesn't Chase just combine the Chase Freedom and their new Chase Freedom unlimited into a single card

the 5% rotating categories of the Chase Freedom plus the 1.5% cash back on everything else as in their new cards.
It seems like this would be simpler if they are willing to give out both bonuses anyway and the cardholder wouldn't have to be inconvenienced of juggling through both cards and deciding which card gives the best deal for their purchase.

Because "inconveniencing" you is part of the way Chase makes this business sustainable. The more the "inconvenience", the fewer customers choose to go through the juggling and more settle for just one. That means over all of their accounts, they have to spend relatively less in reward (not for you particularly, but overall). It would be pretty great for consumers if all the AF free rewards cards combined their benefits into one card. I mean, I would love to have a single card that has 5% categories, gives 4% back in gas, 3% back on restaurants and travel and 2% back on everything else. After all, it is possible for me to put together a card collection to achieve this. But doing this in a single product, I wager, would quickly become unprofitable for the issuer.

Tubpbs
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Re: chase credit cards

Postby Tubpbs » Sun Jul 31, 2016 1:09 am

To My Credit wrote:
kdm31091 wrote:Because Chase is trying to convince people to sign up for the 1.5% instead of signing up for Freedom with 5%. They've buried the 5% version on the website. Yes, it's still there, but it's clear they want to direct people to the Unlimited.
I'm not sure if that's the case, because they are still offering the $150 bonus on the Freedom. You'd think that if they were planning on discontinuing it, they'd stop giving out the bonus to discourage people from applying for it. I think it's just a case of the Freedom already being a very popular card that everybody knows about and them wanting more people to know about and get the newer Freedom Unlimited.


I brought the bonus up before. I chalked it up to marketing research to some degree. They don't want to skew the sign ups any more than they already are by moving the freedom to the bottom of the list of cards on the site. By leaving the bonus, they allow people to make a "fair" appraisal of their desire to get either card. Even if they are dropping the original Freedom, leaving it on there and seeing what portion applies for one vs. the other is valuable data in my opinion.
Amex - BCP, Platinum, Business Gold
BoA - BankAmericard Cash Rewards
Chase - Freedom, CSP, RC, Ink Plus
Citi - DC, Prestige
Discover - It

takeshi
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Re: chase credit cards

Postby takeshi » Mon Aug 01, 2016 9:21 am

charged wrote:It seems like this would be simpler if they are willing to give out both bonuses anyway and the cardholder wouldn't have to be inconvenienced of juggling through both cards and deciding which card gives the best deal for their purchase.

It would be simpler and more convenient but, as pointed out above, creditors rely on hoops for customers to jump through for rewards. It's not all about simplicity and convenience for the consumer. If it was, we wouldn't have rotating categories, caps, minimum spend requirements, etc.



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