My #1 requirement for a credit card is that it has NO annual fees. I pay my credit card bills in full each month, so I’m most interested in credit cards with rewards programs, and in particular, cash back credit cards that have NO fees. On that note, I’ve decided to be proactive and look at a few such cards in more detail, and discuss the Chase Freedom card in particular. Chase’s flagship card actually comes in a few versions, thanks to several ongoing promos that the issuer likes to run. We’ll look at a few of them here, such as the Chase Freedom MasterCard with $100 Cash Back and Chase Freedom Visa with $100 Cash Back Bonus.
Chase Freedom Review: Get Cash Rewards
As mentioned earlier, Chase Freedom exists in several forms. These versions of the card can come and go and may be modified by the credit card company, but we’ll keep our descriptions here current. Let’s talk about which aspects of this card are the same across all its versions:
- The Chase Freedom Card is a cash back rewards card with very generous features compared to other cards that promise rewards.
- You’ll earn 5% cash back on up to $1,500 spent in popular rotating spending categories such as gas, home improvement, dining, department stores, travel (airfare and hotel).
- Earn a full 1% for all other purchases at all times. There are NO limits on how much cash back you can earn and NO spending caps or tiers.
- Earn up to an additional 10% cash back at select retailers when you shop online through Chase.
- Any cash back or rewards earned have no expiration date.
- No annual fee.
Remember that the cash back rewards are unlimited and don’t expire, which you’ll earn when you make purchases. Note that you won’t earn any rebates when you do a balance transfer or get a cash advance. Also, you’ll qualify for additional 5% quarterly cash bonus rewards when you spend on certain categories. For up to 10% cash back, you’ll have to shop online using your Chase account and using Chase’s Ultimate Rewards Mall.
If you’re ready to apply to specific cards, please continue to read about the various Chase Freedom cards below.
Earn Up To $200 Cash Back
While the Freedom card contains all the great features we’ve mentioned earlier, each flavor of this card contains distinguishing characteristics and features. You can apply for any one of these variants once you’ve determined which one has the terms you are seeking.
| Chase Freedom Version |
Terms & Features | Sign Up |
| Freedom Visa: $200 Cash Back | Receive $200 cash back as bonus after you spend $500 in purchases within the first 3 months of being a card owner. Best for customers who don’t carry a balance or pay their balance in full each month. |  |
| Freedom Visa: $100 Cash Back | Receive $100 cash back after you make $500 in purchases over 3 months. Also get 0% Intro APR for 6 months on new purchases & 12 months on balance transfers. Best for customers who have a modest balance they want to get rid of. | |
| Freedom MasterCard: $100 Cash Back | Same features as the Freedom Visa with $100 Cash Back. This card won the “Best Overall Card” (CBS MoneyWatch 2011). | |
So for some of its versions, this card can be considered a 0% APR credit card that won’t charge you interest on purchases made during a preliminary period. For those cases, the card’s regular rates kick in after the intro period, with variable terms depending on which credit/rate category you fall under: average or good to excellent credit. The card has different rate structures based on your credit rating, so unlike other cards where everyone may receive the same rates at all times (barring some exceptions here and there), this card has variability built into its terms.
For instance, if you’ve got excellent credit, you’ll likely be receiving the best pricing terms, and with a more mediocre credit score, you may end up with the standard terms. The APRs are tied to the prime rate, which is one benchmark for lending used by financial institutions. Chase also reserves the right to decide which rates to offer you. All applications will at first be considered for the most attractive terms, but depending on the credit information the issuer pulls from your reports, your rates will be adjusted accordingly. There is the possibility that you may end up with alternative rates or that your application may be denied.
Also, while this card accepts balance transfers, it’s not really considered a balance transfer card. If you transfer your balance to this card, you will be charged a prime rate plus some additional APR based on your pricing/rate category (as mentioned above).
Other Rewards and Cash Back Credit Cards
Chase Freedom has been in my list of top cash back credit cards for a while now and I’ve eyed it as a card I’d consider applying for when the need arose. For the record, here are some other rewards cards that I’ve been tracking and which I’ve featured before:
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These cards may give you some perspective on how Chase Freedom’s rewards stack up.
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{ 15 comments… read them below or add one }
Still it pays to be careful with these “too good to be true offers”.
Actually, the Chase Freedom Card will have an annual fee of $30 very soon. It was sent out to me recently in a mailing. Although, for current cardholders the fee will be waived for the first year of the program. I used to make $500 in a little over a year on the card but now it is more like $300 or so. I am still deciding if I will be willing to pay the fee out of principle as I still stand to make a decent return.
I have received no such mailing for my Freedom card, and I just logged in and checked the paperwork online which states clearly, no annual fees. I’d love to know where that paperwork is supposedly coming from.
However my cash back does expire – 36 months after earned. And besides the initial $50 bonus, saving up to $200 in cash back and then cashing in gets another $50 bonus.
@John,
Chase Freedom has been around a while and from what I understand, it’s been a good choice for a cash back credit card. Sure, credit card offers can be modified at any time (as is the case with my BofA card and Advanta card) but this particular card is one of the more decent options around, IMO. I know a few bloggers who carry it.
I’m on the same page as Rachel. Back in June I received a mailing from Chase saying that they will be charging an annual fee, but it is waived for the first year. I know I keep seeing advertisements for the card stating “no annual fee”, so maybe they’re holding off until next year to start charging any customers annual fees.
MidnyghtChilde: They also stated that the extra $50 bonus for redeeming is $200 cash back is also not valid anymore (starting back in July).
Thanks for the clarifications everyone. I’ll have to keep an eye out on the “no annual fees” matter here. Although maybe that $30 a year doesn’t sound too bad. Still, I wouldn’t like it if this was setting a precedent. To me, it’s the principle. I’d be miffed if the credit card industry started introducing annual fees across the board with credit card companies acting like a cartel.
There are mixed opinions about Chase since they took over Washington Mutual, but I like them so far.
I especially like their Leisure Rewards Debit Card. There is a annual fee of $25.00, but I rack up way more than $25.00 in cash rewards, and gift cards. I also like that its a debit card and I earn rewards without dancing with the credit card monster.
-Dan Malone-
Yeah it USED to be a good card SVB. With the rewards being cut and an annual fee introduced, the card quickly becomes horrible.
If you want a no fuss card, go straight for the Schwab 2% cashback on everything card.
If you want to be rewarded for extra categories (better than the Chase), go with the Discover More card with quarterly rotating 5% cashback categories (gas, groceries, restaurants, flights, etc.)
Essentially there are better cards out there than this. Think before you apply!
The Chase Freedom Card is a good card in the rewards category although one thing that always has bothered me is that the up to 3% categories rotate and they are not fixed like the True Earnings American Express Card which I like better (Disclosure: I have this card personally).
Ah, True Earnings and Discover More are in my favored list, but Schwab also looks interesting. But rewards cards are not “one size fits all” anyway — depending on your spending patterns, one card can work out better for you than another. General 2% cash back may not be the most optimal card if you spend more on special categories (or use the card for such purposes): in that case, the 3% from Chase or the 5% from Discover may go a longer way for you as a rewards card.
Note that with the Chase Freedom card, the extra 2% you earn on your top 3 spending categories maxes out at $600 net spending per month. Also, if you also have a Chase checking account, the 3% rate gets applied to your top 5 spending categories. I use an American Express Blue Cash card for groceries, gas and drug store purchases only and get 5% cash back, then use the Chase Freedom card for most everything else.
Keep an eye out for banks introducing fees for low balances. I was informed by my friendly bank teller that some banks will be charging their customers if they have no or too small of a balance. Keep an eye peeled on your next statement.
There are actually a couple of different Chase Freedom cards. I know this because of when the $50 “bonus” for cashing in $200 reported went away in July, I called in a huff, wanting to know why I wasn’t notified. I was told that certain accounts were undergoing changes, but mine and others were not. The $30 fee after the first year is true, though. Honestly, I haven’t really minded. I received ~$1K from having my card one year so far.
So perhaps for some cards you need a checking account also. I have not seen my rewards “tap out” at any particular amount.
These rewards cards are really great tools for those who are able to pay their bills on time… It’s therefore the case that you’ll find rewards cards sporting a higher interest rate than other credit cards. It’s therefore good strategy to only use them if you can avoid carrying a balance with these cards. The best type of credit card, in my opinion, is simply a card with a low interest rate. Period. The money you save in interest is your reward….to be spent any way you want… But I can certainly see how some people would prefer a card that offered a points systems, airline miles and other such rewards though.
I prefer rewards cards over any other card since I don’t carry a balance. So to me, the best type of credit card is a rewards credit card. To each his own!