Real-World Performance of the Chase Freedom Rewards Card
I just wanted to share a bit of data on the real world performance of the Chase Freedom Rewards card. As many of you know, I consider this card to be one of the best reward credit cards on the market. A big part of this card’s appeal is that it offers 1% rewards on all purchases with a 2% bonus on your top three spending categories. Thus, your actual earnings will end up being somewhere in the 1%-3% range.
We actually use this card as a backup to our AmEx Blue Cash Rewards card, which pays up to 5% cash rewards with the highest rate applying to gas, grocery store, and drugstore purchases. While we try to target our use of the Chase Freedom Rewards card to specific categories in order to maximize our rewards, we also end up using it anytime a merchant doesn’t accept AmEx.
So how has this card performed for us? In looking at our two most recent statements, it seems that we’re doing pretty well with it.
Last month we had an effective earnings rate of 1.36%, with a 2% bonus on the following categories:
» Gas & Convenience Stores
» Quick Service Restaurants
» Telecommunications
‘Gas & Convenience Stores’ makes the list because one of our local gas stations doesn’t accept AmEx — all other gas station purchases go on our Blue Cash Rewards card for the 5% reward. The other two categories are there by design — we make all ‘Quick Service Restaurant’ purchases on this card, and also charge our cell phone service to it.
During the month before last, we had an effective earnings rate of 1.83%, with a 2% bonus on the following categories:
» Beauty Shops/Salons/Spas
» Gas & Convenience Stores
» Quick Service Restaurants
The top entry in this list is presumably due to one last round of haircuts for our boys before we switched back to their usual spring/summer buzz cuts, as well as our couple’s massage on our recent Disney Cruise.
It’s also important to remember that Chase offers a $50 bonus if you let $200 in rewards build up before requesting your reward check. That boosts your potential earnings into the 1.25%-3.75% range, although that’s not reflected above.
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Wow, blogger spam…
Is the application link to the card that will change the top three categories every month? I remember you writing that one card you pick the three categories you want and the other automatically adjusts to your spending that month.
Thanks for the info on the $50 bonus, reason enough for me to sign up tonight when I’m at home.
Eric
Comment by Eric — Mar 27th 2008 @ 2:05 pmIt looks like new applications for the Chase Freedom Rewards Card has a catchy twist. Chase will first consider your application for the Chase Freedom Visa Signature card; if you dont qualify for that, you will be considered for the Chase Freedom Visa Platinum card which has different benefits and credit availability with certain restrictions, limitations, and exclusions apply. The problem with “Visa Signature” cards is the same problem seen with “World Mastercards” cards; that is, they have no pre-set spending limit features, and it means your credit reports will have not report your maximum credit line (it will say NA or $0). Instead, they will only report any revolving balance you have on the credit card (your balance).
The Chase Freedom Card will give you 1% cash back on all your purchases, with a 2% bonus on any 3 categories (grocery, gas & convenience, fast food & quick service restaurant, utilities (gas, electric, telecommunications, cable/satellite tv/internet providers), video rentals, department stores, dry cleaners, drugstores, movie theatres, local/suburban commuter transportation (ferries, bridges, tolls, parking garages, taxis/limos), pet supply stores and vetinary services, beauty shops (salons and spas) or gym/recreation memberships. You cannot use at superstores, warehouse clubs, and discount stores. Online and catalog purchases are not eligible either, unless merchants identify themselves amongst the above. For example, Target, Bed Bath & Beyond, Kohl’s, Wal-Mart only count as 1% cash back.
Comment by SavingEverything — Mar 27th 2008 @ 10:32 pm