Over the years many reward credit cards have come and gone, but the Chase Freedom® card has been going strong for a decade. During that time it has undergone changes in its reward structure, and has evolved to be the reigning king of cash back cards in 2014 for three main reasons:
Reason #1: 5 percent cash back
Freedom gives you a full 5 percent rebate on multiple categories that rotate on a quarterly basis. The spending level that qualifies for the 5 percent is quite high (up to $1,500 in category spending per quarter when you enroll). This means you can earn 5 percent on up to $6,000 of your spending every year.
What are the quarterly spending categories for 2014? The Chase Freedom 5 percent cash back categories are expansive and reward cardmembers for some useful and fun everyday spend categories:
It's great to see Chase is doing gas stations again for two quarters – that's half the year for something that is a regular expense for so many consumers.
- Q1 (Jan. 1 – March 31, 2014): Gas stations, Starbucks® stores, and movie theaters
- Q2 (April 1 – June 30, 2014): Restaurants and Lowe's® home improvement stores
- Q3 (July 1 – Sept. 30, 2014): Gas stations and Kohl's®
- Q4 (Oct. 1 – Dec. 31, 2014): Amazon.com, Zappos.com and select department stores
Reason #2: You get cash back on your other purchases, too
One of the biggest drawbacks with some credit cards is that they give you great rewards for a couple categories, but a sub-par rebate on all other spending.
However the Chase Freedom offers you a full and unlimited 1 percent on all other purchases. This makes it an excellent "all-in-one" choice if you don't want to have multiple reward cards.
Reason #3: There's no annual fee, no inactivity fee, and no expiration of your rewards
The rewards you earn on this card will never expire as long as your account remains open. Nor will you ever have to worry about annual fees or inactivity fees.
Rewards redemption without the BS
Some cards come with high redemption thresholds -- you have to redeem a certain (often large) amount of rewards to get the cash. Fortunately, the Chase Freedom doesn't. Once you rack up $20 worth of cash back, you can start redeeming for statement credits or direct deposits. And you always get a full 1-cent-per-point value. That's an important distinction, as with many cards the point values often get diluted when it comes time to redeem.
And, the rewards program is not just for cash back. You also can redeem your points for:
- Travel – You can use your points for flights, hotels, and car rentals.
- Merchandise – There are thousands of options.
- Experiences – There are all sorts of unique opportunities for concerts, culinary events, the hottest games, safaris/tours and much more.
- Gift Cards – Sometimes you can get even more value out of your rewards when redeeming this way. That's because you can get a gift card at a discount:(This screenshot was taken to show some past examples, the current selection may vary.)
You also get a number of unique benefits...
What many people don't realize is that the Chase Freedom card's benefits go above and beyond just rewards. You get purchase and travel benefits, some of which you won't even find on high-end cards that cost hundreds per year. For example...Participation in Chase Ultimate RewardsVerdict for 2014?
The Ultimate Rewards program provides a lot of ways to save money and earn even more points on your spending.
- Shop at over 400 popular online stores and earn more rewards for every dollar spent. For example, you get 2x at Walmart.com and Target.com, 7x at Drugstore.com, 8x at TurboTax, and 10x at Kohls.com just to name a few.
- Book your air travel through Ultimate Rewards and get double points on every dollar spent.
- You can transfer/combine points with the Chase Sapphire Preferred. This makes your Freedom rewards even more valuable if you transfer them. Why? Because if you transfer and then spend them through your Sapphire Preferred account, you can get 20 percent off travel with Ultimate Rewards. For example, a $500 flight is just 40,000 points. Think about it... that means your 5 percent (5x point) categories can be worth up to 6.25 percent if you transfer the points to Sapphire Preferred before spending them.
Price Protection (aka Lowest Price Guarantee)
Have you ever bought something at a retail store only to see it go on sale afterward? If that happens with qualified purchases made with the card, you can use Chase Freedom's Price Protection and get refunded for the difference. This coverage is offered for 90 days from date of purchase, up to $500 per claim/$2,500 annually. None of the American Express cards offer this benefit but the Freedom does – and it has no annual fee to boot.
As you have seen in this in-depth review, Chase delivers massive reward and perks value with the Freedom card. You get top-notch rewards, valuable benefits for free, and there's never an annual fee. This is a very solid rewards card that makes sense for almost everyone's wallet. If you are a regular reader of our card forum you will quickly realize it is a crowd favorite, for good reason.