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July 08, 2008

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Did they raise the $600 limit because I'm already hitting my $600/month on gas, groceries, and a variable third category alone? I usually spend this card up to $600 and then switch over to my rewards amex for the remainder of the month.

Hmmm, this complicates things. I was already having a tough time figuring out what 3 categories to use my Chase card for. The categories they allow are pretty limited, especially since I have a separate gas card, I can't pay most of my utitlies with a credit card, and Walmart (where we get most of our groceries) doesn't count as grocery. Add to that I was just about to close my Chase checking account. My minimum is $500 so I'm not sure if it's worth it to leave that money in there just to earn the extra rewards. Any thoughts?

David --

What do you mean when you say your minimum is $500? Do you mean for your checking account?

If so, it sounds like to me that you'd probably be better off going another way (like with Amex Blue.) One of the key rules in making the most of your credit card rewards is to pick a card that matches what you buy and where you shop. Sounds like the Chase Freedom card doesn't work for you based on these guidelines.

Yes, the minimum balance to keep my checking account open without fees is $500. I no longer use this account for anything so that is why I was about to close it. I would consider leaving it open in order to have five categories earning 3 percent rather than three but I don't know if it's worth it. I don't think Amex Blue works for me because, as has been established in the past, it is better for big spenders and I am certainly not that. Chase Freedom combined with the 2 percent back on everything Countrywide Card and a 5 percent gas card is definitely the way to go for me. The only question is whether I should leave $500 in a non-interest earning account in order to have two extra spending categories that earn 3 percent.

David --

If you can get 2% with Countrywide and don't spend that much in the Chase categories anyway, you're probably better off without it.

I also have both the checking account and credit card so I was automatically upgraded. Five categories isn't a big deal because there's still a $12 cap on monthly rewards which I have no trouble hitting, but the big win is that they also eliminate the rewards expiration. So if you are having trouble getting $200 in rewards within three years, or forget to cash them in right away, they'll be waiting for you when you're ready.

Still, I think I might be better off going with the Plus version with the $30 annual fee. You just have to spend $725/month in six categories to make up the difference. With gas, grocery, and utility prices the way they are, I think that should be pretty easy to hit for most families.

I just called Chase Freedom Card, and the representative said if you already have a checking account linked to the card, you automatically receive the 3%-back-on-5 categories and should see on your next statement.

I just called Chase Freedom Card, and the representative said if you already have a checking account linked to the card, you automatically receive the 3%-back-on-5 categories and should see on your next statement.

ES (and others) --

One thing we ran into -- my wife's name was a bit different on our checking account versus our card, so it wouldn't have happened automatically. So if anyone is in this situation, you may need to visit or call your bank.

3% back is great

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