Chase Revamping Freedom Unlimited and Introducing Freedom Flex Card
Chase is making changes to its no annual fee Freedom card lineup and the updates look pretty good.
To begin, the changes discussed below will go into effect on September 14 and 15, 2020.
Changes to the existing Freedom Unlimited will be automatic, with no action by the cardholder necessary to access the additional benefits.
Now let’s take a quick look at what’s coming for the Freedom lineup.
Freedom Unlimited
The Freedom Unlimited card will continue to earn its regular 1.5% cash back on all purchases.
As part of the revamping effort, Chase will add three categories to the card’s earning structure which will earn increased cash back amounts. Those categories include:
- 5% cash back on travel purchased through the Chase Ultimate Rewards Travel Portal
- 3% cash back on dining
- 3% cash back at drugstores
The new categories will become effective and begin earning the increased amounts on September 15, 2020.
New Freedom Flex
Chase is also introducing a new credit card to its Freedom lineup…the Freedom Flex.
The Freedom Flex will replace the old Freedom card.
Although, current Freedom cardholders can continue to hold and use the Freedom card under its current earnings structure.
The new Freedom Flex card will be a mixture of the old Freedom card’s rotating 5% cash back categories and the new, fixed, earning categories that will be part of the Freedom Unlimited.
So, the Freedom Flex will offer 5% cash back on rotating categories that will change quarterly in addition to its fixed earning structure below.
- 5% cash back on travel purchased through the Chase Ultimate Rewards Travel Portal
- 3% cash back on dining
- 3% cash back at drugstores
The firepower of 5% bonus categories coupled with decent, fixed, bonus category earnings is a major plus for those wanting to maximize their cash back earning.
The Freedom Flex will be available for new applications on September 14, 2020.
And, new applicants will also earn the currently offered sign-up bonus perk of 5% cash back on the first $12,000 spent on groceries within the first year of cardmembership. Plus, of course, the $200 cash back after spending $500 in the first 3 months from card approval.
That’s a powerful ongoing earning card that Chase is introducing, especially considering the 5% cash back on groceries the first year.
Freedom Card
The Freedom card, as mentioned above, will stick around for current cardholders.
However, it will no longer be available for new card applications.
Current Freedom cardholders will be able to product change to the new Freedom Flex card – or the Freedom Unlimited – if either of those products are preferred.
And I would definitely recommend current Freedom cardholders consider moving over to the Freedom Flex card for its increased earning abilities.
Ultimate Rewards Points
While all of the Freedom credit cards are advertised as cash back earning cards, it’s important to know that these cards also earn Ultimate Rewards points.
The terms “cash back” and “Ultimate Rewards points” are interchangeable for the Freedom lineup.
You’ll just need a premium Ultimate Rewards earning card in your arsenal to take full advantage of the Ultimate Rewards points earned via Freedom cards. Premium Ultimate Rewards cards include:
- Chase Sapphire Preferred
- Chase Sapphire Reserve
- Chase Ink Business Preferred
If you’d like more information on Ultimate Rewards and how they can be used, read our post “Why I Love Ultimate Rewards Points and You Should Too.”
Wrap Up
Chase is making some really nice changes to its Freedom card lineup.
The Chase Freedom Unlimited is getting new bonus categories – dining and drugstores – which will earn 3% cash back and 5% cash back on travel purchased via the Chase Ultimate Rewards Travel Portal, in addition to its regular 1.5% cash back earned on all other purchases.
And a new card, the Freedom Flex, is being introduced. It will have the 5% rotating categories earning structure of the Freedom card as well as the new 3% for dining and drugstores and 5% on travel via the Chase Travel Portal.
While some banks may offer more competitive cash back earning credit cards, it’s hard to argue, when considering the versatility to use the earnings as Ultimate Rewards points, that these changes aren’t a positive whether you’re wanting cash back or points to travel for free.
