Chase has lured me in with the $250 sign up bonus last March and despite the usual fate of cards with these promotional offers (I tend to close most of them after some use) this one stuck with me thanks to the great cash back rewards it offers.
In fact it has become my primary credit card ever since except for dining and travel expenses which I still charge to my American Express from Costco.
I have just learned that Chase has sweetened the Freedom offer with a Plus card which in mostly the same card but with certain important improvements.
How does Chase Freedom work?
Chase sorts out all your spendings into a few categories like Gasoline, Eating out, Groceries, Utility bills, etc. At the end of each statement period Chase picks 3 categories where you spend the most and pays you back 3% in cash back or points, whatever you choose. In addition you earn a flat 1% on everything else.
If you wait till you collect $200 in rewards then the amount goes up to $250 essentially turning your 3% into 3.75% and 1% into 1.25%
How is Freedom Plus different?
I called the number on the application screen and spent some time verifying the information. It appears there are two important changes according to the rep.
- The number of bonus categories increases from 3 to 6;
- The rewards cap for bonus categories is lifted
These are very good changes. The traditional Chase Freedom card caps the extra 2% you could earn to $12 per statement period. I have been hitting that cap consistently over the past months effectively under-earning rewards. No cap for me would mean more rewards.
While on the phone, I also confirmed that this new card has no $30 annual fee which was mistakenly mentioned on one of the application pages.
Update: a reader reports that there is a $30 annual fee which is waived the first year. The reps at the application hot line refer to it as a “membership fee”
New customers get 10,000 miles
The application page also mentions a 10,000 miles bonus for new customers which they earn after the first purchase made on the card. I am not sure what happens if you vote for cash back instead of points when you apply for the card. I will update this post as I find more information about this promotion.
Should you apply?
If you already have the regular Chase Freedom card, the upgrade should be a no-brainer. The Chase Freedom Plus is arguably the best card on the market for average folks.
If you don’t think your spending pattern falls under the “average” category, you might consider other cards. There are some good promotions mentioned here, also this post summarizes how I personally use credit cards.
Update 03/15: I received my first Chase Freedom Plus statement. Read more here.
Update 03/28: Popular merchants not included in the 15 Chase spendings categories can be found here.
Update 04/05: What is the breaking point in monthly spendings when Chase Freedom Plus start to beat the old Chase Freedom card in rewards? Find out here.
Update 05/08: Received my third statement. Read about it here.
