Chase Freedom Card Review

Chase Freedom is one of the best credit cards for cash back, if used the right way. If not, there are drawbacks. Read on for the pros and cons to determine if this card is right for you.

9/15/2020 Update: Chase Freedom is no longer available on CreditDonkey. This offer may have been discontinued or may no longer be available to new applicants.

• Why We Like Chase Freedom
  
• Why You Might Want Another Card

In addition to its rotating 5% cash back categories, Chase Freedom offers an introductory APR on purchases and balance transfers for 15 months and the opportunity to earn a $150 bonus for new customers. With no annual fee, it is possibly the best cash back credit card.

But that's only true if it's used correctly.

Learn how this card works and how to use it to your advantage. Read on to see if it's right for you.

Who Chase Freedom is Good For

• If you want to maximize cash back without paying an annual fee. This card gives 5% cash back in categories that change every 3 months (on up to $1,500 in combined purchases in the bonus categories each quarter). We'll cover the category calendar later in this review.

  Counterpoint: If you are not organized, cannot keep track of changing categories, or your spending is varied (e.g., you spread it between gas, groceries, shopping, dining out), then consider Chase Freedom Unlimited® instead. Freedom Unlimited gives you a flat 1.5% cash back on all purchases.

• If you're planning on making large purchases. This card has a promotional APR.

• If you have a premium Chase Ultimate Reward card. If you have the Chase Sapphire Preferred®, Chase Sapphire Reserve®, or Chase Ink Business Preferred®, you can pool your points onto the premium card account. This will allow you to maximize your points, which can then be transferred to Chase airline and hotel partners. We will explain how to pool points later in this review.

How Chase Freedom Works

One of the top features of the Chase Freedom card is the quarterly rotating 5% cashback rewards categories. Chase Freedom offers a standard 1% cash back on all other purchases, but you earn 5% cash back on up to $1,500 in combined purchases (for up to $75 cash back) in bonus categories each quarter. These bonus categories that offer 5% cash back change each quarter - every three months - and requires activation each quarter in order to take advantage of the 5% categories.

In our opinion, you get the best value from this card if you pay close attention to the spending categories each quarter and are diligent about charging any purchases under those categories to this card. The opportunity for up to 5% back is HUGE in the credit card world (most cards only offer 1% or maybe 2%).

Keep in mind, if you spend over the $1,500 quarterly limit in the bonus categories, you go back to the regular 1% cash back rate until the new categories rotate in after the three months are over.

It's a good idea to check out the type of rewards categories Chase Freedom offers first and see if they fit with your lifestyle and normal spending patterns before seriously considering this card.

Categories

The bonus categories for 2020 are:

• Q1 (January - March 2020): Gas Stations, Select Streaming Services, and Internet, Cable & Phone Services

Categories and merchants are announced before the start of each quarter.

Remember, you have to activate the 5% cash back categories every quarter. You can activate online, by text message, via email, by mobile app, by calling customer service, or in person at a Chase bank. Activating online is probably the easiest way to go as you can do it while checking out your account statement. If Chase is a bank you frequent already, then activating in person at a Chase ATM machine might be more convenient for you.

In addition, you can earn extra cash rewards by shopping online through Ultimate Rewards Mall, Chase's online shopping portal.

To give you an idea of some of the other 5% cash back categories offered in the past, here they are for the previous few years. Note that this is for historical reference only as categories do not necessarily repeat.

The bonus categories for 2019 were:

• Q1 2019: Gas Stations, Drugstores, and Tolls
  
• Q2 2019: Grocery Stores and Home Improvement Stores
  
• Q3 2019: Gas Stations and Select Streaming Services
  
• Q4 2019: Department Stores, PayPal and Chase Pay

The bonus categories for 2018 were:

• Q1 2018: Gas stations, internet/cable/phone services, and Chase Pay, Apple Pay, Android Pay, and Samsung Pay mobile wallets.
  
• Q2 2018: PayPal, Chase Pay, and Grocery stores.
  
• Q3 2018: Gas stations, Lyft, and Walgreens.
  
• Q4 2018: Wholesale clubs, department stores and Chase Pay.

The bonus categories for 2017 were:

• Q1 2017: Gas stations and local commuter transportation (includes taxis, subways, local commuter buses and trains; does not include parking, tolls, and Amtrak®)
  
• Q2 2017: Grocery stores (does not include Walmart®, Target®, discount or warehouse club store purchases) and drugstores (must be primarily a drug store and not just a store with a pharmacy in it)
  
• Q3 2017: Restaurants and movie theaters
  
• Q4 2017: Walmart and department stores

The bonus categories for 2016 were:

• Q1 2016: Gas stations and local commuter transportation (includes taxis, subways, local commuter buses and trains; does not include parking, tolls, and Amtrak®)
  
• Q2 2016: Grocery stores (does not include Walmart®, Target®) and Wholesale Clubs (such as BJ's® and Sam's Club®)
  
• Q3 2016: Restaurants and Wholesale Clubs
  
• Q4 2016: Department Stores (such as JCPenney®, Kohl's®, and Macy's®), Wholesale Clubs (such as Costco, BJ's and Sam's Club) and Drug Stores (such as Walgreens, CVS and Duane Read)

The bonus categories for 2015 were:

• Q1 2015: Grocery stores (not including Target® and Walmart®), movie theaters and Starbucks®
  
• Q2 2015: Restaurants, Bed Bath & Beyond®, H&M®, and Overstock.com®
  
• Q3 2015: Gas stations and Kohl's®
  
• Q4 2015: Amazon.com, Zappos.com, Audible.com, and Diapers.com

The bonus categories for 2014 were:

• Q1 2014: Gas stations, movie theaters and Starbucks®
  
• Q2 2014: Restaurants and Lowe's® home improvement stores
  
• Q3 2014: Gas stations and Kohl's®
  
• Q4 2014: Amazon.com, Zappos.com and select department stores

What is the Best Chase Credit Card Promotion

Other Things We Like About Chase Freedom

The huge 5% cash back bonus in select categories is no doubt the best thing about the Chase Freedom card. But there are plenty of other attractive benefits as well.

• Earn a $150 bonus: This card has a standout promotional offer. You earn $150 after spending just $500 on purchases in your first three months from opening the account. Other rewards credit cards have much higher spending thresholds required to score the promotion.
  • How to Meet the $500 Spending Requirement
    
  • Best Credit Card Deals
    
  • Chase Credit Card Promotions

• Promotional APR: This cash rewards credit card comes with a 0% Intro APR for 15 months from account opening on purchases and balance transfers, then a (See Issuer's Website) APR after that. The balance transfer fee is 3% when you transfer a balance during the first 60 days your account is open, with a minimum of $5.

  The introductory rate can give you time to pay off a big purchase or consolidate your debt onto one card.

  • 0% APR Offers
    
  • How to Pay Off Credit Card Debt
    
  • Payoff Calculator

• Rewards are easy to redeem: You can redeem rewards for cash back for your choice of a statement credit, direct deposit, or a paper check. You can also redeem through Chase Ultimate rewards for gift cards.
  • How to Build Wealth in Your 20s
    
  • Successful People Do These Things Daily
    
  • How to Work Smarter, Not Harder

• Widespread acceptance: The Chase Freedom is a Visa credit card. That means you'll enjoy widespread merchant acceptance, more than you would with cards from American Express or Discover. This is an important differentiating factor if you frequently shop at smaller businesses.
  • Why We Love Small Business
    
  • Financial Pitfalls to Avoid in Your 20s

• No annual fee: This card also has no annual fee, so all your rewards go right back in your pocket with no minimum amount you have to spend to justify an annual fee.
  • No Annual Fee Credit Cards
    
  • Credit Cards with Annual Fees Under $100
    
  • Travel Credit Cards with No Annual Fees

• Shop online for even greater rewards: If you shop through Chase's online shopping portal, you can earn even more cash rewards at select online retailers (extra cash back ranges from 1% to 15%, depending on the merchant). The list of merchants changes from time to time.
  • Credit Cards for Online Shopping
    
  • Today's Best Online Coupons

• Rewards never expire: You don't have to worry about your cash rewards expiring because you forgot to redeem them in time. As long as your Chase Freedom account remains open, your cash back does not expire.
  
  • How to Choose a Rewards Credit Card
    
  • Compare Cashback Rewards

Drawbacks of the Card

© noddymini (CC BY 2.0) via Flickr

Despite its benefits, there are a few reasons why you might want to consider a different rewards credit card.

• You have to actually pay attention to rotating rewards categories: You'll want to do some thinking before you shop to make sure you're getting the most rewards possible. For some people, this adds a fun dimension to shopping, but for others, it might just be a pain.

  Keep in mind that the most you can get back at the 5% level is $75 a quarter as the card stops giving you 5% after you've spent $1,500 on combined purchases in the bonus categories. While $75 isn't chump change, some people may be turned off by the threshold.

  Don't want to worry about rotating rewards categories? You might want to consider the Chase Freedom Unlimited with unlimited 1.5% cash back on every purchase (Chase Freedom vs Freedom Unlimited).

• It can tempt you into buying things you do not need: By calling your attention to the different bonus categories every quarter, the card may prompt you to buy more at certain stores than you normally would, just to get the higher percentage of cash rewards.

• You have to actually sign up to activate the rewards each quarter: We recommend setting up a notification through Google Calendar or on your phone so that you remember to sign up to reap the 5% bonus categories. If that sounds like a hassle, you may want a credit card that has a more consistent rewards program, like cash back or points on purchases that don't change.

• There's a foreign transaction fee. If you do a lot of international travel, you may want to opt for a card with no foreign transaction fee. Chase Freedom charges a foreign transaction fee of 3% of each transaction in U.S. dollars. In comparison, credit cards from Discover and Capital One have no foreign transaction fee.

Is Chase Freedom: A Good Credit Card?

© robie06 (CC BY-SA 2.0) via Flickr

Is it worth applying for?

If you have good credit, then YES.

Chase Freedom is a strong contender as either a primary card or a secondary card. And there's little downside in adding it to your wallet since it has no annual fee.

And there is a lot of upside. By timing your spending correctly, it's hard to beat this card's bonus cash back on rotating categories. Because of this, some people use the Chase Freedom as a secondary card specifically for charges that line up with the bonus rotating cash back categories.

This card is great for people who are looking to earn cash rewards, rather than trying to figure out points or miles. It's a solid choice from a big bank for the "everyman/everywoman," considering its cash back program for everyday items, no annual fee, and introductory APR. Because of the foreign transaction fee, it might not be the best card for international travelers, but if you stay in the U.S. and use your card frequently, you'll be rewarded nicely.

How Chase Freedom Card Compares

© marfis75 (CC BY-SA 2.0) via Flickr

Though there's little downside to owning this card, it's still smart to compare similar cards to see which one suits your needs best. Here's our assessment to help you make an informed decision.

If you want the same rewards rate for every purchase:

Chase Freedom Unlimited: This card is similar to the Chase Freedom, but instead of the rotating categories, it offers unlimited 1.5% cash back on every purchase. It's ideal if you just want the same rewards rate for every purchase.

If you're planning on making a large purchase soon:

Discover It: The Discover It card also has a 5% cash back for quarterly rotating categories. And it offers a great introductory cash back bonus: it will match the cash back you earned in the first 12 months after you open the account (for new customers only), so it's a good choice if you plan to make a lot of large charges in the first year.

Other pros of the Discover It include: a relatively lower regular APR after the introductory APR period lapses (and it won't raise if you do pay late occasionally), a free FICO credit score every month, highly-rated customer service and no minimum for redeeming your cash rewards.

Plus, there are no foreign transaction fees, which makes the Discover It a solid card for those who travel abroad. But Discover cards aren't accepted everywhere, so you'd be wise to have a Visa or MasterCard as well just in case.

Tip: Best Credit Card for International Travel

If you eat out and travel abroad frequently:

Chase Sapphire Preferred: People who travel a lot, foreign or domestically, stand to get more in return for their purchases than regular users of Chase Freedom. Points are geared towards travel, and there's a 1:1 point transfer to participating travel partners. This means that 1,000 Chase points/miles equal the same for partner miles/points, including British Airways Executive Club and Southwest Airlines Rapid Rewards.

You'll also get a fair amount of travel benefits, including trip cancellation/interruption insurance and car rental collision damage waiver. Plus, the Sapphire Preferred has no foreign transaction fee.

While the Sapphire Preferred has a travel-friendly rewards program and a $0 foreign transaction fee, it does have an annual fee. There's no promotional APR on purchases or balance transfers, which won't win over consumers who carry a balance. You'll also need excellent credit to be approved for the Chase Sapphire Preferred card, so if your FICO credit score is low, you should look elsewhere.

If you want cash back without rotating bonus categories:

Citi Double Cash: This card attracts frequent credit card users who like the incentive of earning cash back on their payments. You get cash back twice: 1% on eligible purchases and 1% when you pay.
But there's no signup bonus and no 5% cash back on rotating bonus categories (which you may prefer it if don't want to bother signing up for the rotating categories each month). However, one thing to beware of with the Citi Double Cash is that you'll lose the cash you earned if you don't make an eligible purchase or a payment within a year's time.).

If you spend a lot on groceries and gas:

Blue Cash Everyday: If you want hassle-free cash back with no rotating rewards categories and no enrollment required, this card from American Express, a CreditDonkey partner, has the same rewards categories year-round. In our opinion, it's a great cash back card if you spend a lot on groceries and gas.

Bottom Line

© Global Panorama (CC BY-SA 2.0) via Flickr

For a quick review, here are the pros and cons when considering Chase Freedom:

Pros:

• Earn a $150 bonus after spending $500 on purchases in the first 3 months from account opening.
  
• Earn 5% cash back on up to $1,500 in combined purchases in bonus categories each quarter (for up to $75 in cash back rewards). Enjoy new 5% categories each quarter (requires activation) like gas stations, restaurants, and drugstores. Unlimited 1% cash back on all other purchases.
  
• 0% Intro APR for 15 months from account opening on purchases and balance transfers, then a (See Issuer's Website) APR.
  
• No annual fee.

Cons:

• 3% foreign transaction fee of each transaction in U.S. dollars.
  
• Must remember to activate rewards categories each quarter to get the 5% bonus categories.

In our opinion, there are very few cons with this card. But if you think bonus categories that change every quarter are a hassle, this rewards credit card may not be for you.

However, for everyone else, especially those who prefer getting cash rewards rather than airline miles, the Chase Freedom card is a first-rate way to earn cash back as long as you have excellent/good credit. But keep in mind that you get the best value out of this card only if you remember to activate the quarterly categories and are careful with your spending.

Since the Chase Freedom has no annual fee, it's a cost-effective way to earn those rewards (assuming you pay off the balance every month).

9/15/2020 Update: Chase Freedom is no longer available on CreditDonkey. This offer may have been discontinued or may no longer be available to new applicants.