The Chase Freedom card is a no-annual-fee credit card that yields 5% cash back on a rotating list of three categories each quarter, and 1% cash back on all other purchases. If used in combination with a a Chase Ultimate Rewards credit card, each cent of cash rewards generated by the Freedom card can be converted to a much more valuable Ultimate Rewards point, which gives the Freedom card more potential than its rotating-bonus-category rivals.
Signup Bonus and Fees
The Freedom card comes with a $100 signup bonus after you spend $500 within 3 months of opening your account. The card has no annual fee.
The Rewards
The Freedom Card ordinarily yields 5% cash back on purchases within three categories, which rotate every quarter, and 1% cash back on all other purchases. The 5% categories are each capped at $1,500 per quarter. The cash back is technically earned in “points,” but these points are redeemable for a statement credit or a check, at a rate of 1 cent per point, in increments of $20. This quarter (2Q 2013), the three bonus categories are restaurants, movie theaters, and Lowe’s home improvement stores.
What’s great is that Freedom points – which are ordinarily redeemable for a straight 1 cent per point – can actually be converted to much more valuable Ultimate Rewards points (and then transferred to Ultimate Rewards transfer partners such as United and Hyatt) if you also hold an Ultimate Rewards credit card. I own (and highly recommend) the Sapphire Preferred card, so I transfer all of my Freedom points to Ultimate Rewards points, which I value conservatively at 1.5 cents each. (For more on Ultimate Rewards points, click here to see my review of the Sapphire Preferred Card).
The Bottom Line
When used in combination with a Chase checking account and Ultimate Rewards card, the Chase Freedom Card is simply unrivaled for small, sub-$10 purchases. And its typically-broad 5x categories are nothing to shake a stick at. Especially in light of the fact that the card carries no annual fee, this card is an excellent addition to any wallet.