Q2 2020: Gym memberships and fitness clubs, grocery stores and select streaming services.

Q1 2020: Gas stations, select streaming services, Internet, cable and phone services.Q4 2019: Department stores PayPal and Chase Pay.Chase doesn’t release the quarterly categories for the Freedom card more than a few weeks in advance so we are looking at four recent quarterly categories. To determine the rewards potential of the Chase Freedom card we have to look at the bonus categories and calculate what an American household might spend in those areas. This is only available if you also hold one of the cards on which transfers are permitted. Or you could maximize your earnings by transferring the points you earned to one of many airline partners including United, Southwest Airlines and Hyatt. This could mean for cardholders of the Sapphire Preferred and Ink Business Preferred, that 5% earned on the Freedom and Ink Business Preferred is worth 6.25% when redeemed for travel and for cardholders of the Sapphire Reserve that 5% is worth 7.5% when redeemed for travel. When you redeem rewards for travel on one of those cards, your Chase Ultimate Rewards points are worth 25%, 50% and 25% more respectively. This may not be worth the effort for some.īut for those who consider rewards-maximizing a sport they’re constantly training for, the 5% yield on the Freedom could be worth even more when transferred to a card like the Chase Sapphire Preferred® Card or Chase Sapphire Reserve®.

If you’re using the Chase Freedom in conjunction with another rewards-earning card that will snag you more than 1%, you’ll also have to keep track of your spending in the bonus categories so that once you hit that spending cap, you switch to a card with a better rewards rate. You have to remember to “activate” each quarter to actually earn that 5% on the bonus categories, otherwise you’ll just earn 1%. Users have to be proactive to make the most out of this rewards structure. Earn 5% cash back on rotating bonus categories, up to $1,500 in combined spending each quarter that you activate.The Chase Freedom comes with the following rewards structure: With the superior option of the Freedom Flex on the table, it’s hard to imagine why someone would choose the Freedom instead. In September of 2020, Chase added a new card to the Freedom family: the Chase Freedom Flex℠, and it’s a jacked-up version of the Freedom.Ī Chase rep confirmed to Forbes Advisor that current holders of the Chase Freedom are even welcome to product change to the Chase Freedom Flex-which means no new hard pull on your credit report, although you won’t be eligible for the Flex’s welcome bonus. Here’s what really makes the Chase Freedom a subpar choice compared to others.

Earning 1% sure beats earning nothing, but when there are a plethora of no-annual-fee cards on the market that earn 1.5% or even 2% cash back on all spending, the Chase Freedom’s 1% looks downright paltry. You could theoretically also use the card on all of your other purchases, earning 1% back on that spending. If you’re able to max out the spending limit each quarter on the rotating categories alone, you could put a cool $300 a year back in your pocket, just on spending in the bonus categories. Getting 5% cash back, even with a cap of $1,500 in quarterly spending, is a pretty good earn rate for a card that costs you nothing to carry. The Chase Freedom card used to be a decent option for anyone with the tolerance to track their spending in various categories.

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