As I've discussed before, I'm using the Chase Freedom Cash Visa Card as part of my effort to maximize my credit card cash back rewards. The card offers 3% cash back on the three most-used categories you charge in each month (out of 15 categories total.) Or at least that's the default plan. I recently found a way to expand it a bit.
I received a mailing that told me I could get 3% back on five (not just three) categories if I opened up a Chase checking account and linked my card to it (not direct payment, mind you, just had the two linked. BTW, this makes it more convenient too since if you do so you can see both the checking account and credit card info online in one spot.) Obviously, the mailing was an effort to get more people to open up Chase checking accounts. But I already have one. So I simply went in to my bank, asked for the deal/linkage, and they set me up in about three minutes.
It's probably not worth it for you if you're not a Chase checking account holder already. But if you are, here's a good and easy way to earn higher cash back rewards for a very minimal amount of effort. Simply stop into your bank and ask for the deal.
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.
Posted by: MonkeyMonk | July 08, 2008 at 09:57 AM
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?
Posted by: David | July 08, 2008 at 11:03 AM
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.
Posted by: FMF | July 08, 2008 at 11:16 AM
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.
Posted by: David | July 08, 2008 at 12:18 PM
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.
Posted by: FMF | July 08, 2008 at 12:24 PM
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.
Posted by: Andy | July 08, 2008 at 10:09 PM
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.
Posted by: E.S. | July 09, 2008 at 07:34 AM
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.
Posted by: E.S. | July 09, 2008 at 07:35 AM
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.
Posted by: FMF | July 09, 2008 at 08:13 AM
3% back is great
Posted by: nude celebrity | July 01, 2009 at 07:46 PM