After all the talk about what is and isn't happening to the Chase Freedom credit card's rewards structure, it appears that nothing is changing for me. I received my $250 rewards check last night ($200 in rewards earned plus the $50 bonus) and the letter with is said the following:
Remember, with Chase Freedom for checking customers, you earn 3% cash back automatically in the top 5 Everyday categories where you spend the most each month. There are 15 categories in all! Your spending habits may change from month to month -- the triple rewards you earn for them will stay the same. You also earn 1% cash back for every $1 in purchases you make everywhere else. Just continue to use your Chase Freedom credit card for all your purchases, and you'll be on your way to another great reward!
A few comments:
1. I do have a Chase checking account and because I've linked it to my credit card, I get 3% on five categories versus the standard three categories for non-Chase customers.
2. No mention of any term or reward changes. Is this because I'm a Chase banking customer? Or maybe it's because of some other reason? Others have had changes, why not me?
3. But are there really no changes? This WSJ piece seems to indicate there will be changes for all Freedom cardholders in the future.
4. I'm still going to switch to the Schwab 2% card (my application has been sent in) since I sometime bump up against Chase's $12 max cash bonus rewards when using the Freedom card as my main one.
5. I'm still working on how to manage the transition between the Chase Freedom, Amex Blue Cash, and Schwab cards so I maximize my rewards this year.
6. I want to minimize the cards I carry with me. Currently I have a money clip that allows four cards to be carried on the back. I now have: my driver's license, the Blue Cash card, my Costco membership card, and the Chase Freedom card. I'm thinking of moving to the following: my driver's license, the Amex card that combines with my Costco membership card, the Chase Freedom card, and the Schwab card. But the final decision is yet to be made.
I received my change form separate from my statement. They call it an update to my account. The statement is that the 3% awards is "in new spending categories throughout the year" and that they are "quarterly bonus rewards". By July 31 my account will be updated. In the coming weeks I am supposed to receive a kit that explains the new rewards. No mention yet that it is rotating categories or what the categories are.
Posted by: Bruce | June 04, 2009 at 10:22 PM
I had the same thing happen, and my guess is that the message on the check hasn't been updated to reflect the "new reality" of this reward card.
One question I have for you is - why not use the Blue Cash more?
Posted by: Wise Finish | June 04, 2009 at 11:40 PM
I saw an article in the Wall Street Journal today which said Chase is going to migrate everyone...
"Throughout the year, all Chase Freedom cardholders will be moved to the rewards program, where they will earn 1% cash back (or one point) for every dollar spent and 3% cash back (or three points) for every dollar spent in categories that change each quarter. Chase had already moved to those terms for new customers last November."
I'm not sure if this will effect me. I have the Chase Freedom Plus Visa Signature card thing that gets me 3% back in the top 6 categories, but I pay a $50 annual fee (for me it was worth it to pay the fee to get the extra 3 categories). I don't have any other Chase accounts (except I did have a Wamu account so maybe I do now).
I'm also considering the Schwab card. When I originally did the math Chase was the winner over Schwab, but Chase has some stores like Stater Brothers and Trader Joe's in the "other" category instead of 'groceries' so I'm getting shorted 2% in a few categories that I frequently shop. ...so I'm not sure how effective the 3% back really is vs the 2% everywhere.
Posted by: Benjamin Bryan | June 05, 2009 at 12:39 AM
I have seen no mention of a change coming. I hope it is true if you have cash with them it does not effect your rewards. Between my Checking, Savings, and Brokerage account with them I have six figures in cash with them. They owe me!
Posted by: MarcusT | June 05, 2009 at 01:46 AM
Wise:
http://www.freemoneyfinance.com/2009/05/im-changing-my-main-credit-card.html
Posted by: FMF | June 05, 2009 at 07:50 AM
Benjamin --
I think that's the article I linked to in point #3 above.
Posted by: FMF | June 05, 2009 at 07:51 AM
Chase Rewards Update:
http://online.wsj.com/article/SB124408382936084065.html?mod=yahoo_free
Posted by: Strick | June 05, 2009 at 08:01 AM
"For Chase, the move is also a way to replace older versions of its Freedom card, some of which had offered richer cash-back rewards and bonus opportunities. Throughout the year, all Chase Freedom cardholders will be moved to the rewards program, where they will earn 1% cash back (or one point) for every dollar spent and 3% cash back (or three points) for every dollar spent in categories that change each quarter. Chase had already moved to those terms for new customers last November....
However, some Chase Freedom cardholders who want to earn a fixed 3% bonus for spending in grocery, gas and fast-food categories, will soon pay a $30 annual fee. Chase's Sapphire Preferred card -- where users can transfer points to other travel reward programs -- has a $95 annual fee."
Posted by: Strick | June 05, 2009 at 08:04 AM
you could just get a bigger wallet with more places for cards... :-)
Posted by: smartcookie | June 05, 2009 at 10:51 AM
Benjamin,
I'm not sure because I don't shop at either of those stores, but a common misconception is that the categories listed on your statement line items are the same as the rewards categories. They are not. Several grocery stores show up as "other" but they still return the full 3% reward. I would think Trader Joe's would fall into this category.
The only way to figure it out is to do the math yourself using trial and error or maybe call Chase and ask them (assuming you can get a CSR who knows what they are talking about). I have a spreadsheet set up to help me figure it out, but it's more difficult since I always hit the $12 monthly rewards cap which makes it a little bit of a guessing game.
Posted by: Andy | June 05, 2009 at 10:58 AM
I received the letter two days ago stating the account change. I will be getting my next $50 in rewards and then switching to another card. I want to avoid forgetting they are going to start charging an annual fee in a year. Plus I like to use only one card at a time (unless another is offering a deal.) Since I live in NYC, I don't own a car. Getting a larger percentage on gas does nothing for me. Grocery is always one of my categories, but restaurants are not.
Posted by: CentsInTheCity | June 05, 2009 at 02:27 PM
> I think that's the article I linked to in point #3 above.
Whoops, guess I should have looked at the links.
Posted by: Benjamin Bryan | June 05, 2009 at 10:43 PM
Point #4
The new deal doesn't limit you to a $12 monthly max. It's unlimited.
Posted by: Jeff, Durham NC | June 25, 2009 at 05:55 PM