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cheddar
Posts: 6,794
Registered: ‎09-29-2007
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Chase Freedom vs Chase Freedom Plus

[ Edited ]
Someone please correct me if I'm wrong, but from what I can tell from the descriptions on the Chase website, it seems like this decision is a no-brainer.  (Both of these cards have points and miles versions, but the descriptions below apply to the cash version of these cards.)
 
Chase Freedom
  • 3% cash back on your top 3 spending categories each month
  • 1% cash back on all other purchases
  • Maximum of $600 in spending per month can earn cash back at the 3% tier
  • No annual fee or rewards fee
  • $50 incentive with first purchase
Chase Freedom Plus
  • 3% cash back on your top 6 spending categories each month (as opposed to 3)
  • 1% cash back on all other purchases
  • No maximum on cash back at the 3% tier
  • $30 annual rewards fee (waived the first year)
  • $100 incentive with first purchase

So it appears that with the "Plus" version, you get an extra $50 just for making your first purchase.  This seems to make up for the rewards fee for an additional year, plus 2/3 of the following year's fee.  Meaning you effectively get to carry the card fee-free for two years instead of one, and the third year would only be an extra $10 (it would actually be $30, but only $10 would come out of your pocket since you got an extra $50 with the first purchase).

During that three-year period, you get the benefit of no caps on your 3% rewards and you get that rate in the top six categories instead of the top three.

If someone were planning to apply for Chase Freedom anyway, is there any reason not to give the Chase Freedom Plus a try for at least the first three years?

 



Message Edited by cheddar on 07-06-2008 09:56 PM
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App free since 7/11/08.
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FretlessMayhem
Posts: 3,279
Registered: ‎08-03-2007
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Re: Chase Freedom vs Chase Freedom Plus

That's an excellent catch. Even after the first year with the $30 fee assessed, if I ran all of my purchases through that card all year, I think we're talking some serious cash back.

I might have to call and see if they can switch me. However, I do stress that the normal Freedom card is an awesome credit card and I highly recommend it.
Here we go again...
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Timothy
Posts: 9,252
Registered: ‎03-19-2007
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Re: Chase Freedom vs Chase Freedom Plus

seems like a no-brainer to me-
 
I just got a pre-approved offer for a Plat business card from Chase- the terms are better than the website- 
 
Moderator Emeritus
cheddar
Posts: 6,794
Registered: ‎09-29-2007
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Re: Chase Freedom vs Chase Freedom Plus

[ Edited ]


FretlessMayhem wrote:
That's an excellent catch. Even after the first year with the $30 fee assessed, if I ran all of my purchases through that card all year, I think we're talking some serious cash back.

I might have to call and see if they can switch me. However, I do stress that the normal Freedom card is an awesome credit card and I highly recommend it.

I think the "catch," so to speak, is that the Chase Freedom categories are very specific once you get past the first three or four (supermarkets, drugstores, gas & convenience stores, quick-service restaurants), and not every purchase falls into one of those categories at all.  For most people the vast majority of their monthly expenses probably fall into 3-4 categories, and adding an additional three categories for the 3% tier will probably not end up to be very much additional cash back.
 
Video rentals, movie theaters, and dry cleaners are three of those categories, for example (those have always seemed kind of odd to me), but there is no category for normal sit-down restaurants, bookstores, electronics stores, and so on.  It would be interesting to see how much additional cash back one could get by adding three more "categories."


Message Edited by cheddar on 07-06-2008 10:05 PM
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psychic
Posts: 1,518
Registered: ‎04-20-2007
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Re: Chase Freedom vs Chase Freedom Plus

[ Edited ]
The Chase Freedom Plus card appears to be the best choice for an individual applying for a new Chase account.  
 
If you're an existing Chase cardholder, and wish to do a product change to the Chase Freedom card, you'd have to weigh the costs and benefits between the regular Chase Freedom and the Chase Freedom Plus cards.  When I changed my Chase Free Cash Rewards card to the regular Chase Freedom card, I wasn't offered any new account holder incentives, such as a $50 credit after my first purchase, etc.  I'm uncertain if Chase would waive the Plus version's $30 annual fee for the first year for existing Chase cardholders wishing to do a product change.  
 
However, if I wanted to apply for a new Chase Freedom account, I certainly would choose the Chase Freedom Plus, and give it a try for at least 3 years! 


Message Edited by psychic on 07-07-2008 02:54 AM
EQ 814 / TU 815 / EX 842
Established Contributor
Posts: 739
Registered: ‎06-30-2007
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Re: Chase Freedom vs Chase Freedom Plus

I've herd that now you can have 6 just by having a checking account with them
People say "Only apply for credit you NEED"

I say "apply for credit you have PRATICAL use of"

I don't have AMEX card because I don't want a card that suffers from PMS
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cheddar
Posts: 6,794
Registered: ‎09-29-2007
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Re: Chase Freedom vs Chase Freedom Plus



psychic wrote:
The Chase Freedom Plus card appears to be the best choice for an individual applying for a new Chase account.  
 
If you're an existing Chase cardholder, and wish to do a product change to the Chase Freedom card, you'd have to weigh the costs and benefits between the regular Chase Freedom and the Chase Freedom Plus cards.  When I changed my Chase Free Cash Rewards card to the regular Chase Freedom card, I wasn't offered any new account holder incentives, such as a $50 credit after my first purchase, etc.  I'm uncertain if Chase would waive the Plus version's $30 annual fee for the first year for existing Chase cardholders wishing to do a product change.  
 
However, if I wanted to apply for a new Chase Freedom account, I certainly would choose the Chase Freedom Plus, and give it a try for at least 3 years! 


Message Edited by psychic on 07-07-2008 02:54 AM

Thanks for making that distinction, psychic!  That's an excellent point.

 
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Moderator Emeritus
cheddar
Posts: 6,794
Registered: ‎09-29-2007
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Re: Chase Freedom vs Chase Freedom Plus

[ Edited ]


rbbyrbsn wrote:
I've herd that now you can have 6 just by having a checking account with them

Are you saying that that you can get 3% cash back on your top six categories if you have a standard Chase Freedom account along with a checking account with Chase ?
 
Those rewards are probably still capped, though, right?

 


Message Edited by cheddar on 07-07-2008 06:19 AM
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woopah
Posts: 721
Registered: ‎03-15-2008
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Re: Chase Freedom vs Chase Freedom Plus



cheddar wrote:








rbbyrbsn wrote:
I've herd that now you can have 6 just by having a checking account with them




Are you saying that that you can get 3% cash back on your top six categories if you have a standard Chase Freedom account along with a checking account with Chase ?


Those rewards are probably still capped, though, right?





Message Edited by cheddar on 07-07-2008 06:19 AM




According to chase.com/exclusives:

"The Chase Freedom credit card rewards 3% cash back or 3 points per $1 on the first $600 in purchases in the top 3 of 15 Everyday categories where you spend the most each month. Chase checking account customers will earn 3% cash back or 3 points per $1 on the first $600 in purchases in the top 5 of 15 Everyday categories. That's 2 additional Everyday categories. If you are an existing Chase Freedom credit cardmember and a Chase checking customer, your account will be upgraded to these new benefits; a confirmation letter will be mailed when this takes place in June, 2008. To apply for Chase Freedom with the exclusive benefits for Chase checking customers, or to learn more including pricing and reward program terms, see a Chase branch banker. Restrictions apply. Subject to credit approval. Chase credit cards are issued by Chase Bank USA, N.A. There are 15 Everyday categories consisting of grocery stores (that are not affiliated with or departments of superstores, warehouse clubs or discount stores), gas & convenience stores, quick service payment/fast food restaurants, telecommunications, cable/satellite TV/Internet Service Providers, video rentals, department stores, dry cleaners, drug stores, movie theatres, local and suburban commuter passenger transportation (including ferries, bridges, tolls, parking garages, taxis/limos), pet supply stores and veterinary services, utilities, beauty shops (salons and spas), or gym/recreation memberships. Benefits will no longer apply if, at any time, the checking account is closed."

So still capped and is top 5 categories.
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thrasher865
Posts: 1,157
Registered: ‎05-21-2008
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Re: Chase Freedom vs Chase Freedom Plus

I'm having trouble getting $600 a month to qualify for ANY categories, much less the top 3 or 6.  If you have a family this might be something to consider, as you could come close to $600 just at the supermarket, lol.  For my scenario, however, I'll stick to the standard.

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