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- The Chase Freedom is a longtime favorite cash-back credit card, with no annual fee.
- For me personally, this card is good enough to have held a permanent spot in my wallet for more than a decade.
- While it isn't my only card, I use it regularly and never miss using it for a purchase in the 5% bonus categories.
Among cards with no annual fee, Chase Freedom is a longtime favorite cash-back credit card. Freedom offers up to 5% cash back on rotating bonus categories and 1% everywhere else. That 5% cash back is pretty compelling, and when used in tandem with a premium Chase Sapphire Reserve or Chase Sapphire Preferred Card, it can be a supercharger that helps you earn 5 points per dollar for travel.
This card should not be confused with Chase Freedom Unlimited, a flat rate card that offers 1.5% cash back on all purchases. Depending on your spending habits, either one may be a good fit for your wallet. In the cash-back category, the 5% you get from Chase Freedom is one of the best offers available today. I have personally held this card since December 2007.
In this review, we will take a look at how the rewards, benefits, and costs come together - and whether or not it makes sense for you.
Chase Freedom rewards
The core benefit of the Freedom credit card is cash back. This card gives users 5% cash back on bonus categories that rotate each calendar quarter up to $1,500 in combined purchases (max $75 per quarter in rewards) and an unlimited 1% everywhere else.
To get the 5% bonus cash-back rate, you have to click a link in an email from Chase four times per year or log in to your online banking account to activate. While this extra step is a bit of a hassle, it is a good reminder on where you should use the card for maximum rewards in the next quarter.
The 2018 rewards calendar includes categories like gas stations, internet/cable/phone service providers, grocery stores, wholesale clubs, and department stores. Over time, you will likely find that some quarters line up well with your spending habits and others will be a bit less exciting. Overall, however, it's tough to find a card that offers 5% cash back anywhere. That makes Freedom particularly valuable.
The 1% everywhere is less exciting. If you are not interested in the quarterly bonus, the Freedom Unlimited card's flat 1.5% cash back may be more appealing.
Chase Freedom cash back never expires. New account holders can qualify for an additional $150 cash back bonus after spending at least $500 on purchases in the first three months after opening a new account.
Read more: Chase Freedom's bonus categories for Q4 2018 include 5x points at Costco and Nordstrom
Chase Freedom and Sapphire for travel rewards
If you are big on travel rewards, you might not want to exclude the Freedom card from your spending habits. If you have both the Chase Freedom card and one of the Sapphire travel rewards cards from Chase, you can use Freedom to earn Ultimate Rewards points.
When you have both cards, cash back is transferable to an account that earns Ultimate Rewards at a value of 1 cent per point. $5 in cash back becomes 500 Ultimate Rewards points. Why is this valuable? Chase Ultimate Rewards points are often worth more than 1 cent each toward travel.
We won't get into those details here in this review, but it is an important added benefit you should be aware of if you are interested in travel rewards from credit cards.
Read more: 4 reasons anyone who cares about credit card points and miles should be using Chase Ultimate Rewards
Chase Freedom benefits
As a high-quality card from Chase, you get some added benefits on top of cash-back rewards.
New account holders get a 15-month 0% introductory APR period (then a variable APR of 16.74% to 25.49% applies)on purchases and balance transfers. If you currently pay interest on another credit card, a balance transfer can help you avoid interest charges and hopefully pay off that debt for good by the time 15 months is up.
This card also offers added protection for purchases. Purchase protection gives you free insurance for 120 days that protects you against damage or theft on purchases you make on this card up to $500 per claim and $50,000 over the lift of the account. If you just dropped a brand-new phone and broke the screen, this protection might cover the cost.
The card also gives you an automatic extended warranty. The card extends the manufacturer's warranty by one year on eligible warranties of three years or less.
Chase Freedom costs and fees
For a card with rewards this good, it is very cheap to carry. There is no annual fee and you can avoid interest and all other fees by paying your card off in full every month and avoiding certain activities.
After the 15-month 0% introductory APR period ends, the card charges variable rate 16.74% to 25.49% APR on purchases and balance transfers. The rate depends on your credit history and may change at any time with market interest rates. Cash advances charge a higher variable rate 26.74% APR.
Late and returned payments cost up to $38 per occurrence. Balance transfers charge 5% ($5 minimum) per transfer. Cash advances cost 5% ($10 minimum) each. Using the card outside the United States incurs a 3% foreign transaction fee.
The bottom line: Does Chase Freedom make sense for you?
For me personally, this card is good enough to have held a permanent spot in my wallet for more than a decade. While it isn't my only card, I use it regularly and never miss using it for a purchase in the 5% bonus categories.
The $150 bonus and no annual fee may be enough to get you to sign up, but if you do you can get great value for years to come. Among rotating category rewards cards with no annual fee, this one is definitely the best on the market today.
If you are looking for simple cash back or want to pair it with a Sapphire card for travel rewards, you'll find exactly what you are looking for, with a very low cost, with the Chase Freedom credit card.
Click here to learn more about the Chase Freedom from Insider Picks' partner The Points Guy.
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