topic Re: Chase Freedom 5% Bonus Categories going away? in Credit Cards

Chase Freedom 5% Bonus Categories going away?

CraigHwk — Wed, 01 Jun 2016 22:36:28 GMT

Has anyone heard about this? Apparently a Chase Private Client was told that the 5% bonus categories for the Freedom will be going away by the end of the year and that the card will turn into a 1.5% everything Freedom Unlimited card. Will be real disappointing if this turns out to be true. Hopefully the banker has no clue what he's talking about.

Re: Chase Freedom 5% Bonus Categories going away?

Anonymous — Wed, 01 Jun 2016 22:39:17 GMT

@CraigHwk wrote:
Has anyone heard about this? Apparently a Chase Private Client was told that the 5% bonus categories for the Freedom will be going away by the end of the year and that the card will turn into a 1.5% everything Freedom Unlimited card. Will be real disappointing if this turns out to be true. Hopefully the banker has no clue what he's talking about.

While it is certainly possible (and would explain the introduction of the Freedom Unlimited) with the low quarterly cap I wouldn't think the Freedom would be huge loss for Chase. However, if people (like most of us I expect!) use it just for the 5% categories and not 1% spending, then maybe.

Re: Chase Freedom 5% Bonus Categories going away?

yfan — Wed, 01 Jun 2016 22:46:11 GMT

If this is true, I don't think it's the 5% that's the problem. It's combining with URs. Those points are valued highly, and Chase does not want to give them out like candy. But then, if that's what's bugging them, they might be wiser to drop the ability to convert Freedom's cashbacks to UR points.

Re: Chase Freedom 5% Bonus Categories going away?

kdm31091 — Wed, 01 Jun 2016 22:53:17 GMT

Most regular consumers don't like having to opt in, to remember which things are 5%, etc. Ask everyday people what they'd want in a CC reward program and most people have seemed to prefer flat rate cards with no hassle. Some people don't want to care about which card to use where.

Beyond that, the 5%, plus the ability to transfer to travel with CSP, is a loss for Chase, especially if people are only using it for 5% spend. So it would not be a huge surprise to see it go away.

Re: Chase Freedom 5% Bonus Categories going away?

Anonymous — Wed, 01 Jun 2016 22:59:15 GMT

@kdm31091 wrote:
Most regular consumers don't like having to opt in, to remember which things are 5%, etc. Ask everyday people what they'd want in a CC reward program and most people have seemed to prefer flat rate cards with no hassle. Some people don't want to care about which card to use where.

Beyond that, the 5%, plus the ability to transfer to travel with CSP, is a loss for Chase, especially if people are only using it for 5% spend. So it would not be a huge surprise to see it go away.

Do we know that URs are more expensive than cash back? Certainly for things like AA miles, Citi was able to buy huge quantities in bulk, relatively cheaply. So it wouldn't amaze me if for at least some partners, URs are cheaper to Chase than cash back.

ETA: but as people can exchange for cash or use at 1.25 c per point, from a liability viewpoint they are at least as costly...

Re: Chase Freedom 5% Bonus Categories going away?

Anonymous — Wed, 01 Jun 2016 23:24:43 GMT

I hope not!!!

Re: Chase Freedom 5% Bonus Categories going away?

minski — Wed, 01 Jun 2016 23:33:23 GMT

I hope not. I got the Chase Freedom just this week for the 5% rotating categories.

And if I apply for the Freedom Unlimited, I want the bonus. lol.

Re: Chase Freedom 5% Bonus Categories going away?

RonM21 — Thu, 02 Jun 2016 01:39:50 GMT

News to me. Was not aware. I don't typically focus on the categories except for the gas when it comes up.

Re: Chase Freedom 5% Bonus Categories going away?

EdMan63 — Thu, 02 Jun 2016 02:43:20 GMT

I hope not. I pc'ed my Freedom to the Unlimited back in Mar but just changed it back today. While I'm not a huge category guy, I also didn't like the redundancy with my Quicksilver. Either way I hope it stays around.

Re: Chase Freedom 5% Bonus Categories going away?

Anonymous — Thu, 02 Jun 2016 02:46:06 GMT

Interesting. I asked my banker about the Freedom a few weeks ago, as it had disappeared from his desk display. He said it was going away.

Re: Chase Freedom 5% Bonus Categories going away?

grillandwinemaster — Thu, 02 Jun 2016 03:12:13 GMT

Let's hope it's a false rumor.

I would think that Discover IT is Freedoms biggest or main competitor. I don't see them relinquishing that market share that easily.

If it is true, the Freedom/CSP combo, in my opinion, would loose some of its appeal in UR point conversions.

Re: Chase Freedom 5% Bonus Categories going away?

CatOfSpades — Thu, 02 Jun 2016 06:25:49 GMT

Yeah, this is actually my favorite card. I wouldn't mind switching over to my Double Cash as my main card, but I would definitely miss this one. From what I've heard, it doesn't look to be going away right now, but it does look like they'll be phasing the card out at the end of the year and then "grandfathering" current Freedom holders for another year or two before force changing us to the Unlimited. That's just a rumor, but you know how rumors are - sometimes there's a thread of truth in it.

Re: Chase Freedom 5% Bonus Categories going away?

yfan — Thu, 02 Jun 2016 07:19:13 GMT

It should be noted that on the "Credit Card Home" page of Chase, the Freedom is gone and is replaced by the Freedom Unlimited. Although the Freedom is still available on the "all credit cards" page, Chase is definitely demoting its prominence. It could definitely be going away.

Re: Chase Freedom 5% Bonus Categories going away?

creditguy — Thu, 02 Jun 2016 08:06:06 GMT

All good things must come to end, eventually anyway. While it's all just a bunch of speculation, it's not at all impossible not unheard of for such a card to go way of the dodo bird. If the speculation is wrong, then great, but if it is right then C'Est La Vie, it had a great run.

Re: Chase Freedom 5% Bonus Categories going away?

Anonymous — Thu, 02 Jun 2016 09:17:38 GMT

Just my luck.

Applied for this a little over week ago and the two week message turned into the 7-10 message yesterday.

Re: Chase Freedom 5% Bonus Categories going away?

delaney1 — Thu, 02 Jun 2016 12:16:16 GMT

Well, that would suck. I love my Freedom.

Re: Chase Freedom 5% Bonus Categories going away?

driftless — Thu, 02 Jun 2016 12:42:29 GMT

Another fan of Freedom here for the UR's.

Re: Chase Freedom 5% Bonus Categories going away?

kdm31091 — Thu, 02 Jun 2016 13:24:22 GMT

Maybe Chase just doesn't want to give out 5x UR points anymore. It could be that simple, or it could just be a matter of consumer tastes. Like I said, most "regular" people who don't care much about CCs dont want to have to opt in, remember categories, etc. The flat rate structure is popular with the general public.

You'd think if they didn't want to give 5x UR points they could just switch the Freedom's system to being exclusively cash back (i.e., no point transfers) so I'm kind of betting it's just the latter -- they figure the rotating thing isn't popular with the majority.

Will be interesting to see what happens, but they are certainly downplaying the 5% Freedom on their website.

Re: Chase Freedom 5% Bonus Categories going away?

driftless — Thu, 02 Jun 2016 13:26:38 GMT

I am hoping, if this rumor is true, that they just close Freedom to new applicants. I will ask the next time that I am in our branch. The disappearance of Freedom from Chase's website does not look good.

Re: Chase Freedom 5% Bonus Categories going away?

Runitup — Thu, 02 Jun 2016 14:39:08 GMT

If true, I got no use for Chase except for the occasional BT.