Today, Chase Freedom upped the cash back rewards from 3% to 5% cash back for popular categories like gas, groceries, home improvements, airline tickets and other categories that rotate periodically. When spending outside these categories, the card pays a full 1% cash back as well. While many credit card customers are irate over shrinking benefits, rising interest rates and companies tacking on fees, Chase Freedom’s headed in the opposite direction. Perhaps this is an attempt by Chase to come in and woo new cardholders with a more lucrative reward package? Whatever the motive, given the alternatives, 5% back on popular spending categories sounds great to me.
If you already pay your balance off monthly, it’s definitely worth checking out. If you have an existing balance, you mind find some cover under the 0% APR for the first 6 months as well. If you carry a balance that you don’t foresee paying off soon though, often times, the cash back rewards cards carry a higher interest rate than other cards without such rewards, so consider whether you’re robbing Peter to pay Paul (or worse) if your motive is to reap rewards while incurring high interest debt elsewhere. In those cases, your best bet is to simply pay no interest with a 0% balance transfer card.
We use a combination of a couple cards and optimize spending in various categories on each to realize between $500-$800 in tax free cash back rewards each year. This has the taxable equivalent of about $1000 per year for simply signing up for the right cards (we DO pay off in full each month).
To summarize some key stats for the Chase Freedom card:
- 5% Cash Back in Popular Categories that rotate
- No Annual Fee
- 0% Intro APR for the first 6 billing cycles that your Account is open for Elite and Premium Pricing.
You can check out more on Chase Freedom here
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