There were some rumors last weekend about pending changes/additions to the Chase Freedom card. Now, there are details out about this Freedom card and what it will be. It sounds like it should be great for the everyday spending we all do!
Chase Launching A Freedom Unlimited Card
The Chase Freedom card that currently exists is a great card to get for the categories of 5X earning that rotate quarterly. With a maximum spending for that bonus capped at $1,500 per quarter, that translates to an easy 30,000 Ultimate Reward points from those categories each year (as long as you have a Chase Ultimate Rewards earning card to convert the Freedom points). Not only that, but the Freedom card comes with no annual fee as well.
Starting this spring, Chase will be rolling out a new Freedom card – the Freedom Unlimited. This card will also be a no-fee card and will not offer the rotating categories of the existing Freedom card. Instead, it will offer 1.5% on all spending. That 1.5% can also be viewed as 1.5 Ultimate Reward points per dollar if you have a UR-earning card to unlock that cashback (if you are just interested in the cashback, there are other cards from Citi, Capital One, and Discover that may serve your needs better).
That is great for an everyday spending card! If you are interested in earning Ultimate Reward points, then this should definitely be a card you look for. It is more than a mere 1.5% if you are earning Ultimate Reward points as UR points are worth a fair amount. If you estimate them to be worth a conservative 1.7 cents per point, it is like earning a 2.5% rebate on your spending. I know that I am always in for more Ultimate Reward points so this will be a card I will be getting.
Getting The Chase Freedom Ultimate
It will not be out until sometime in the spring which will be around the same time when Chase is all-in on what we call the Chase 5/24 – denials when applying for a Chase card if you have 5 or more new accounts in the last 24 months. That means that most of us will not be eligible to get this card by applying for it.
But, Chase will allow people to convert to it. You can convert your existing Freedom card and should be able to also convert a Chase Sapphire Preferred as well. Just do the math to see if it will be worth it to you to give up the rotating 5% categories if you convert your existing Freedom card.
Card Entering Post Chase 5/24
I have theorized many times that Chase will be rolling out some interesting offers after the 5/24 ban is across all of their cards. Without new applications from those of us who like to get a lot of bonuses, they will need to keep their card offers fresh and interesting to engage a new market of people who have not really applied for many cards in their life. This looks like it is step 1 in that direction.
If you are in a position that you do not have more than 5 new accounts in the last 24 months, you may well want to hold off on new applications for a while to see what Chase may bring to the table.
HT: The Points Guy