Chase Freedom, Chase Freedom Unlimited, or Chase Sapphire Preferred

[Anonymous]

Hey all, I'm a frequent browser of these forums and finally decided to make an account because I need to pick your minds about where to go upon picking out my next credit card. I'm fairly new to the credit card game, but I love the rewards and figure since I'm going to be spending money anyways, why not earn some extra perks on the side.

As far as my credit history, according to CreditKarma, my TU = 730 and my EQ = 723. I have one credit card from my credit union (Opened Sept 2015, $500 Limit) and a Citi Double Cash (Opened April 2016, $3000 Limit). I use my DC card exclusively due to the 2% cash back and pay my bill so that my utilization is less than 5%.

Currently, I am in graduate school and my income will consist of loans for the next 2 years until I finish. I will have some pretty hefty expenses coming up with airfare, conferences, and hotels, so any sign-on bonus that is available I should be able to hit without a problem. My day-to-day spending isn't very much (besides rent, utilities) and consists mostly of Target for groceries and gas for my commute to school and around the area as long as the occassional drink or dinner out.

I'm looking into the Chase program because of the ability to transfer the points 1:1 to United and also book flights through their Ultimate Rewards Program. Also, I am pre-approved on their website for both the Chase Freedom and Chase Sapphire Reserve cards. I plan on getting married in the next few years and I would love to be able to surprise my girlfriend with a vacation with the points that I've earned! I know that in order to do this, you need to have a "Tier 2" card, or the CSP or something similar and that points can transfer from a "Tier 1" (Freedom, Freedom Unlimited) to a "Tier 2".

I'm not too big on an annual fee, but I also understand that you get what you pay for. My plan was to apply for the Freedom Card and then use that for all of the 5% purchases that I make and then just continue to use my DC for everything else. This wouldn't allow for points to accrue very quickly because the spending would be pretty sporadic and it would take awhile for them to add up. After using that for a year or so, I was going to apply for the CSP and then transfer all of my Freedom points that I earned in the past year or so in order to participate in the Ultimate Rewards program.

Basically what I'm getting at is should I go all in with Chase and get the CFU for all of my spending, Freedom for only some of my spending, or bite the buttet and jump straight to the CSP. In addition to that, how would you use my previous Double-Cash card in addition to any of the three cards listed above.

I know this is a lot of mumble-jumble, but I hope some of you can make some sense out of this and help me out! Utilizing credit cards seems like such a no brainer and I just want to make sure that I'm maximixing my potential.

Thanks!

[driftless]

I think the UR system works best with 2 - 3 Chase cards. First, a CSP or CSR. Second, a Freedom and/or FU. If you can get two now, I would go that route.

[Anonymous]

I was in your shoes when I was deciding where I want to put all my eggs. At first I was thinking of only cash back and the freedom was my first unsecured credit card. I capitalized on the 5% but also put a majority of my purchases on it as well. Later, the csp caught my eye. Cashback wise, it was great to cover my dining and travel. I wasn't prequal for it so I was apprehensive about applying. I didn't have a 5k min card either. I held off from applying until maybe 6 months of usage of freedom. I cold apped the csp and got an immediate approval. I wanted to take advantage of the pull and apped for the FU on the same day as well. Long story short, after several unsuccessful recons, I was approved. I had the trifecta. I covered myself through the quarter bonus for freedom, everyday purchases with the fu, and dining and travel with the csp. It was a good system. I got the bonuses and stopped cashing out my rewards. 1.25x more when redeemed through UR was compelling enough. Then the CSR comes out 1 month after. I was pretty mad as it made my csp obsolete. Regardless, I applied for it anyway. Got approved immediately.

Anyway, I would highly recommend you starting with a freedom just to get your feet wet. I don't know long you've had the DC, what your credit profile is like, approval odds, etc. in the mean time, while you establish history with chase, then in a few months you can get a CSP or CSR and double app a FU with it. Then you'll have the trifecta. You can maybe close your dc or use it every 2-3 months since it's a straight cash back card. You're going to be focused with accumulating the UR points

[Absolution16]

Welcome to MyFICO!  You will learn a lot from the wonderful community here.

It looks like you are at 2/24 with Chase.  So technically, you have room to go for the Chase trifecta should you wish to do so.

First, I think you should choose between Sapphire Preferred or Sapphire Reserve.  I am sure you've done your homework about those two cards.  It all comes down to how much you spend on travel and dining, and whether or not the extra perks you get from CSR is worth the annual fee for you.  They both have the ability to transfer UR points to airlines and hotel partners.  I think you only need 1, unless you really want both of the sign up bonus.

Freedom is a good card and the rotating categories almost always consist of gas one quarter, groceries at traditional supermarkets one quarter, and restaurants one quarter.  Tame a look at your spending to see if these rotating categories fit your spending pattern.  If not, Freedom Unlimited's flat 1.5% may be better.

Don't let the 1.5 fool you.  If you transfer and burn your points the ideal way, it can be a lot more lucrative than the 2% you get from Double Cash.  Airline transfers usually seem to give out better rate than hotels.  If I were to pick out a hotel chain in Chase's portfolio, I'd say Hyatt generally seems to give better rate of return.

If you want to go for the trifecta, be sure NOT to apply with any other credit cards from other banks.  I'd apply for CSP or CSR first then use it for 6 months, paying in full, and showing Chase your good behavior.  Even earning 1% on non-travel and non-dining may pay out better for you than the flat cashback at 2%.  Continue to monitor your spending habits and decide between Freedom or Unlimited.  Should give you plenty of time.

Personally, for me, the $450 AF is beyond my comfort zone so I am very happy with Sapphire.  CSP waives AF the first year and it is only $95 from second year.  But if you could use those annual airline credits and all the other extra elite benefits from CSR, then I'd go for that.

Now... The downside of putting everything in one basket is there.  I am sure many others can tell you about it.  Also, the downside with transferable currencies like the Chase UR is that you are restricted to the transfer partners.  Yes, you can use Chase's travel portal and burn at either 1.25 with CSP or 1.5 with CSR, but sometimes you can find much better deals somewhere else.  If you were the type of a guy who just needs a room to stay and doesn't care about how many star hotel you stay in, it may be better for you to look at travel cards with flat earn-and-burn ratio like the Barclays Arrival Plus or Capital One Venture.  Just keep in mind that the "miles" from those two cards are completely different kind of "miles" and they have nothing to do with actual miles used by airlines or hotels, and they are not transferable.

I only mentioned the Barclays and Cap1 because of their easy and simple 2x rewards rate.  Something to keep in mind, but if yoh want to go full out with Chase, those cards can be added to your portfolio much later.

Happy point harvesting and good luck on your journey!

[Anonymous]

Only thing I would worry about is income.  Isn't there a minimum income for CSP/CSR like 40k/ yr?  Just list all sources of income available to you when you do apply.

Who knows how long the 100k CSR offer will be around. I have a feeling the CSP will stay at 50k or 40k for quite some time. Get that later.  ( wasnt aware the CSR was showing online for prequalified offers)

If I were you, I would look at the 5% categories https://creditcards.chase.com/freedom/calendarreminder  If you think you can maximize that then by all means, do that. 5x URs but worth 1.5x that so really 7.5 CPP for travel

I'd say if  you are prequalified for CSR apply for that and then immediately apply for the Freedom.  Then in 12 months downgrade CSR to no AF Chase Sapphire if your level of spend doesn't warrant keeping it but you'd lose that 1.5x bonus when redeeming for travel.  You could also downgrade to freedom unlimited but you'd lose out on 15-17.5k URs.

Get your GF to apply too.  That southwest companion pass can be very easy to attain.  Then once you are both over 5/24 then pursue high bonus cards with other banks but spread them out.  Then when wedding time comes around you can find more cards to suit your needs but remember to pay in full as much as possible.

I would plan your dream vacation, go on www.reddit.com/r/awardtravel and get a feel for how many points and what cards you need to save the most money....

Just remember that $450 AF is worth it.  $300 travel credit now and again Jan 1.  Coding for many things beyond "travel".  Save the URs for 1.5x  or transfer out for max return value. Heck folks were even paying their rent on rad pad and it coded as travel through apple/android pay.

Also look into starting a small business if you dont already have one.  Then you could get the ink plus 60k (or wait for it to go back up to 70k which isnt guaranteed).

And there are also lots of flight sales all the time http://www.secretflying.com/  

GOOD LUCK!

[Anonymous]

Do you eat out a lot?

[Anonymous]

First off let me start by saying you all are such a great help! This has been fantastic!

I don't eat out all that often because I am trying to live fairly frugally due to not wanting a ridiculous amount of loans to pay back once I'm done with school. My average monthly spending is only about $800 (not including rent and utilities) so I wouldn't classify myself as a very huge spender.

Also, I misspoke when I said I was pre-qualified for the CSR, I meant to say the CSP!

Right now I am leaning towards applying for the Freedom Card, spending on the 5% categories and paying it off in full each month just to incure some history with Chase. Come Janurary when I'm ready to book about a $1000 flight and about a $1000 hotel, I'll maybe try applying for the CSP card in order to get the sign-up bonus that comes with it.

A few quick questions regarding the Freedom card: Do the points I will be earning stay with the card and will I be able to transfer them even if I don't get a Tier 2 card until later? And does the sign-on bonus for this card come solely as cash back, or will it too be able to transfer into the UR program once I obtain a Tier 2 card?

Thank you for all of your help, I really do appreciate it!

[Absolution16]

---

@Anonymous wrote:

First off let me start by saying you all are such a great help! This has been fantastic!

I don't eat out all that often because I am trying to live fairly frugally due to not wanting a ridiculous amount of loans to pay back once I'm done with school. My average monthly spending is only about $800 (not including rent and utilities) so I wouldn't classify myself as a very huge spender.

Also, I misspoke when I said I was pre-qualified for the CSR, I meant to say the CSP!

Right now I am leaning towards applying for the Freedom Card, spending on the 5% categories and paying it off in full each month just to incure some history with Chase. Come Janurary when I'm ready to book about a $1000 flight and about a $1000 hotel, I'll maybe try applying for the CSP card in order to get the sign-up bonus that comes with it.

A few quick questions regarding the Freedom card: Do the points I will be earning stay with the card and will I be able to transfer them even if I don't get a Tier 2 card until later? And does the sign-on bonus for this card come solely as cash back, or will it too be able to transfer into the UR program once I obtain a Tier 2 card?

Thank you for all of your help, I really do appreciate it!

---

If you are not a regular traveler, and if you don't dine out very much, CSP or CSR loses some of their luster in terms of long-term earning rate.  That doesn't mean those cards won't serve you at all, because you will need either of those cards if you want to take advantage of transferring UR points to airlines and hotel partners.

To answer your question:

Yes!  On Freedom and Freedom Unlimited, you will earn your cashback bonus in the form of UR points, which is 1 UR point = 1 Cent.  You just can't use them to do partner transfers, but you still continue to earn and bank them.  When you DO apply for either CSP or CSR, you then can transfer those UR points into your CSP/CSR account at that time, and then use those UR points from your CSP/CSR account to transfer to partner airlines or hotels.

It is the same deal with the sign up bonus.  You will earn 15,000 UR points, which equal $150 in cashback.  Those 15,000 UR points, without CSP or CSR, cannot be used for partner transfers, but once you get CSP/CSR, you can then transfer those points into your CSP/CSR account, enabling you to apply them for your desired transfers.

So if your goal is to accumulate as many UR points as possible, then just earn the sign up bonus and let it sit there in your Freedom/Freedom Unlimited account until you get the CSP/CSR.

The opposite is true, should you want to use the UR points you earn from CSP/CSR to cashback.  You transfer the UR points from those higher tier cards into your Freedom/Freedom Unlimited card, and then you can use those points for cashback at 1 Cent per 1 UR point.  I don't see why anyone would want to do that, but if cash flow is immediately needed, then it is an option that is given to you.

It really is a great program.

For redeeming UR points, I would look into getting the best deal you can find with airfare first.  I think the burn rate on airfares is generally a lot better than burn rate on hotels.

[Anonymous]

---

@Anonymous wrote:

First off let me start by saying you all are such a great help! This has been fantastic!

I don't eat out all that often because I am trying to live fairly frugally due to not wanting a ridiculous amount of loans to pay back once I'm done with school. My average monthly spending is only about $800 (not including rent and utilities) so I wouldn't classify myself as a very huge spender.

Also, I misspoke when I said I was pre-qualified for the CSR, I meant to say the CSP!

Right now I am leaning towards applying for the Freedom Card, spending on the 5% categories and paying it off in full each month just to incure some history with Chase. Come Janurary when I'm ready to book about a $1000 flight and about a $1000 hotel, I'll maybe try applying for the CSP card in order to get the sign-up bonus that comes with it.

A few quick questions regarding the Freedom card: Do the points I will be earning stay with the card and will I be able to transfer them even if I don't get a Tier 2 card until later? And does the sign-on bonus for this card come solely as cash back, or will it too be able to transfer into the UR program once I obtain a Tier 2 card?

Thank you for all of your help, I really do appreciate it!

---

CSP is a good card as well. first year free, 500 bucks back with 4k spending. however, these cards (CSP and CSR)  also come with pretty ridiculous aprs with no intro period. dont know how that will be like with your loans and stuff.

i think for your situaton, it would be more ideal to get the freedom unlimited first. q4 is approaching and other than "holiday shopping" and costco, there's really not that much incentive to use the freedom card.  once you get your bonus and the 1.5% on your purchases, just let it sit until you decide to apply for the CSP. you can transfer it anytime. whenever my statement cuts, i pool everything to the CSR. as for cash back, you get it in form of ultimate rewards which you can redeem for cash. 100 UR = 1 dollar. you'll see 15,000 UR when you hit your  sign on bonus.

[Anonymous]

---

@Anonymous wrote:

First off let me start by saying you all are such a great help! This has been fantastic!

I don't eat out all that often because I am trying to live fairly frugally due to not wanting a ridiculous amount of loans to pay back once I'm done with school. My average monthly spending is only about $800 (not including rent and utilities) so I wouldn't classify myself as a very huge spender.

Also, I misspoke when I said I was pre-qualified for the CSR, I meant to say the CSP!

Right now I am leaning towards applying for the Freedom Card, spending on the 5% categories and paying it off in full each month just to incure some history with Chase. Come Janurary when I'm ready to book about a $1000 flight and about a $1000 hotel, I'll maybe try applying for the CSP card in order to get the sign-up bonus that comes with it.

A few quick questions regarding the Freedom card: Do the points I will be earning stay with the card and will I be able to transfer them even if I don't get a Tier 2 card until later? And does the sign-on bonus for this card come solely as cash back, or will it too be able to transfer into the UR program once I obtain a Tier 2 card?

Thank you for all of your help, I really do appreciate it!

---

check your PMs