Over the weekend, Angelina Travels reported rumored big changes to the Chase Freedom card.
Starting in March 2016, the current Chase Freedom card with its rotating 5X bonus categories will no longer be available to new applicants.
Instead there will be a new Chase Freedom Unlimited card offering 1.5 Chase Ultimate Rewards points (1.5% cash back) per $1 spent everywhere with no spending cap.
Current cardholders can keep their existing card or convert it to the new one.
The New Chase Freedom Unlimited Will Earn 1.5X Points (1.5% Cash Back) Everywhere With No Limit
I spoke with Chase and can confirm these changes are true. I’ll share what I know!
What’s Happening?
Link: Chase Freedom
Link: My Review of the Chase Freedom
Starting March 2016, the existing Chase Freedom card will be discontinued. I do NOT know the exact date.
The new Chase Freedom Unlimited card will offer:
- Sign-up bonus of $150 (15,000 Chase Ultimate Rewards points) after you spend $500 on purchases in the 1st 3 months of opening your account
- $25 (2,500 Chase Ultimate Rewards points) when you add an authorized user who makes a purchase in the 1st 3 months of opening your account
- Unlimited 1.5 Chase Ultimate Rewards points per $1 spent (1.5% cash back) on all purchases
- Transfer your points to airline and hotel partners if you also have the Chase Sapphire Preferred, Chase Ink Plus, or Chase Ink Bold (no longer available)
- No annual fee
I’m relieved the new card will still offer the ability to transfer points to terrific travel partners like Hyatt, United Airlines, and Southwest if you also have a Chase Sapphire Preferred, Chase Ink Plus, or Chase Ink Bold.
So the main difference between the new Chase Freedom Unlimited and the existing Chase Freedom card is the ability to earn 5X points (5% cash back) in popular rotating categories like gas stations, restaurants, and Amazon.
You can earn the bonus on up to $1,500 in spending each quarter, for a maximum of $75 cash back (7,500 Chase Ultimate Rewards points) each quarter, or $300 (30,000 Chase Ultimate Rewards points) per year.
So if you spend a lot in those categories, but not much in others, you’ll do better with the current Chase Freedom card.
But if you don’t make the most of bonus categories, and spend a LOT on other purchases, the new Chase Freedom Unlimited card might be a better deal for you.
The Better Card for You Depends on How You Spend
If you spend the maximum each quarter in the existing Chase Freedom bonus categories, you’ll spend $6,000 per year ($1,500 per quarter) and earn a total of 30,000 Chase Ultimate Rewards points ($300 cash back).
With the new Chase Freedom Unlimited, you’ll have to spend $20,000 on purchases (anywhere) to earn 30,000 Chase Ultimate Rewards points ($20,000 X 1.5 points per $1 you spend).
What Should You Do?
1. If You Already Have a Chase Freedom Card
You don’t have to do anything! You can keep your old card and continue to earn 5X points in rotating quarterly bonus categories.
Nothing will change and Chase assured me you won’t be forced to switch to the new card.
That said, if you do the math and decide you’d rather earn 1.5 Chase Ultimate Rewards points per $1 on all spending, you should be able to easily switch your card to the new version after it’s introduced.
2. If You Don’t Have a Chase Freedom Card
If you’ve been considering the old version of the Chase Freedom, I would apply as soon as you can. The Chase representative could NOT give me a firm date for the changeover, but it will be soon.
The new card details are already in their computer system.
Remember, Chase has changed their application rules for Ultimate Rewards points-earning cards. If you’ve opened ~5 or more cards in the past 24 months, it’s unlikely you’ll be approved. Although there are exceptions.
And it’s rumored the application rules will soon change for Chase Ink small business cards and airline & hotel cards.
Earning 5X Chase Ultimate Rewards points with the Chase Freedom is 1 of my favorite ways to earn lots of flexible points! It’s 1 of the Chase cards I keep in my wallet.
And it’s free to keep forever because it has no annual fee.
If you apply for the Chase Freedom now, and later decide you prefer the earning structure of the Chase Freedom Unlimited, you should be able to switch without difficulty. But I doubt you’d be able to switch back!
Again, I don’t know when the existing version of the card will be discontinued, so if you’ve been thinking about applying, I’d do so soon.
Bottom Line
Chase will soon close the current Freedom card to new applicants. I like the Freedom card because it has rotating 5X bonus categories. I move the Chase Ultimate Rewards points I earn with the Freedom to my Chase Sapphire Preferred to transfer to travel partners like United Airlines, Hyatt, and Southwest.
Replacing the Freedom will be the new Chase Freedom Unlimited card. With this card you’ll earn 1.5 Chase Ultimate Rewards points (1.5% cash back) per $1 spent everywhere with no spending cap.
Current cardholders can keep their existing card or convert it to the new one.
If you’ve been considering the Freedom card because you like the 5X bonus, now is a good time to get the card. Because you’ll likely be able to switch it to the Freedom Unlimited in the future anyway.
What do you think about the new Chase Freedom Unlimited? Do you prefer 1.5X points everywhere over 5X in rotating categories?
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Comments
- I am private client level so get the “executive line” when ... by Greg
- @Jay – You should be able to keep your card. @Roger – I ... by Million Mile Secrets
- There are already too many 1.5% cash back cards. Many that have ... by Nick
- Since I can't get the CSP due to the 5/24 rule, my freedom card ... by Nick
- I'm fine with this. I can never utilize all of the 5% ... by Ian