September 20, 2020

Why you should apply for the Chase Freedom before it’s discontinued

Business Insider recommends credit cards based on their overall value and ease of use. Sometimes, we receive a commission through The Points Guy affiliate network if you apply and are approved for a card, but our choices are always independent and objective.

  • Chase is launching a new cash-back card called the Chase Freedom Flex on September 15.
  • This new card is similar to the Chase Freedom®, which will be closing to new applicants soon.
  • If you want to earn bonus cash back on groceries and other spending, you should consider applying for the Chase Freedom® before it’s no longer available.
  • You can even double up and hold both the Chase Freedom® and the Chase Freedom Flex to maximize your cash back.
  • See Business Insider’s list of the best cash-back credit cards »

In just a few days, Chase will launch a new cash-back card called the Freedom Flex. It will offer 5% cash back on up to $1,500 spent in combined purchases on categories that change each quarter (then 1% back) plus 5% back on travel booked through Chase Ultimate Rewards, 3% back on dining, and 3% back at drugstores — all with no annual fee.

The Chase Freedom Flex is essentially a souped-up version of the existing Chase Freedom® card. Incidentally, Chase will soon close the latter card to new applicants, and it’s also bringing new bonus categories to its Chase Freedom Unlimited® card.

While there are more opportunities to earn bonus cash back with the Freedom Flex, there are a few reasons why you should consider opening the Freedom card now.

It’s your last chance to apply — forever

Once the Chase Freedom® is closed to new applicants, it’s not coming back. So your last chance to get this card and earn the sign-up bonus is fast approaching. That could be reason enough to get this card while you still can, but it gets better.

Regular APR

14.99%–23.74% variable APR

Credit Score

Good to Excellent

  • Details
  • Pros & Cons

    • The information related to the Chase Freedom® has been collected by Business Insider and has not been reviewed or provided by the issuer of this card.
    • 5% cash back on up to $1,500 in combined purchases in bonus categories each quarter you activate
    • 1% cash back on all other purchases
    • Cash Back rewards do not expire
    Pros
    • One of the highest cash-back rates — if you work for it
    • No annual fee
    • You can turn your cash back into travel rewards if you have another eligible Chase card
    Cons
    • Cap on quarterly bonus cash back
    • If the quarterly categories aren’t convenient, you can do better with another card


    Read Our Review
    Read Our ReviewA looong arrow, pointing right

    You can double up on welcome bonuses

    New cardholders can get $200 back after they spend $500 in the first three months, plus 5% back on groceries on up to $12,000 spent in their first cardholder year. That’s up to $800 in cash back from the introductory offer alone.

    When it launches on September 15, the Freedom Flex will have the same sign-up bonus — meaning you could earn up to $800 in cash back with this card, too. And the best part is that you can have both the Chase Freedom® and the Chase Freedom Flex; Chase considers these two separate products, so you don’t have to make a decision between the two, and neither card has an annual fee.

    Especially if you spend more than $12,000 a year on groceries — whether you have a big family or just love to cook — signing up for the Chase Freedom is a great way to get maximum cash back. You can max out the 5% cash back with the Freedom, and then apply for the Freedom Flex to get 5% back on up to another $12,000 spent on groceries in your first cardholder year. That’s up to $1,200 back on groceries between the two cards.

    Get 5% back on even more spending per quarter

    Like the Chase Freedom®, the Freedom Flex will earn 5% back on up to $1,500 spent per quarter in rotating bonus categories (then 1% back).

    We don’t know whether the two cards will offer identical rotating bonus categories (see the calendar of bonus categories for the Chase Freedom here), but by having both cards you can boost your earning potential from up to $75 back each quarter (5% back on up $1,500 in spending) to up to $150 each quarter.

    Once you hit the quarterly cap on one card, you could simply switch to the other — and if the two cards end up offering different bonus categories each quarter, having both cards increases the odds that you can earn bonus cash back on the purchases you’re already making.

    Chase points are more valuable than ever

    If you have the Chase Sapphire Preferred® Card or the Chase Sapphire Reserve®, you can now redeem your Ultimate Rewards points for non-travel purchases and get a 25% to 50% bonus. 

    The new Pay Yourself Back feature on these two cards lets you cash in rewards for dining, grocery, home-improvement, and charity purchases at a rate of 1.25 cents per point on the Preferred and 1.50 cents per point on the Reserve. If you’re looking to save money during quarantine, this is a great option — and the good news is that the cash back you earn with the Freedom Flex and the Chase Freedom can be combined with your higher-value Ultimate Rewards points.

    If you have a Chase cash-back card like the Freedom or Freedom Flex, you can move your rewards over to a more premium Chase card, like the Chase Sapphire Reserve®, to get more value when you decide to redeem them. This would allow you to use the Pay Yourself Back feature, or to transfer your points to travel partners like United, British Airways, and Hyatt.

    Get the Freedom card while you can

    The Chase Freedom Flex is launching on September 15 — and while we don’t have an exact date for when the Chase Freedom® is closing to applicants, it could coincide with the new card’s debut. So consider applying now if you want to earn maximum cash back on grocery spending and other purchases.

    Disclosure: This post is brought to you by the Personal Finance Insider team. We occasionally highlight financial products and services that can help you make smarter decisions with your money. We do not give investment advice or encourage you to adopt a certain investment strategy. If you take action based on one of our recommendations, we get a small share of the revenue from our commerce partners. This does not influence whether we feature a financial product or service. We operate independently from our advertising sales team.

    Business Insider may receive a commission from The Points Guy Affiliate Network, but our reporting and recommendations are always independent and objective.

    Please note: While the offers mentioned above are accurate at the time of publication, they’re subject to change at any time and may have changed, or may no longer be available.

    Disclosure: This post is brought to you by the Personal Finance Insider team. We occasionally highlight financial products and services that can help you make smarter decisions with your money. We do not give investment advice or encourage you to adopt a certain investment strategy. What you decide to do with your money is up to you. If you take action based on one of our recommendations, we get a small share of the revenue from our commerce partners. This does not influence whether we feature a financial product or service. We operate independently from our advertising sales team.

    Source Article