topic Re: Chase Freedom Product Trade in Credit Cards

Chase Freedom Product Trade

Anonymous — Sat, 06 Jun 2020 15:40:31 GMT

Hey.

My Chase Freedom gets very little use because the quarterly categories are aligning less and less with my spending patterns.

I am only interested in cash back and do not travel or need 'Ultimate" points.

It seems that the only card that I can trade to would be Chase Freedom Unlimited, but the rate of 1.5% is not as good as my Citi DC at 2%.

What should do with this card, since almost all spending goes on AMEX BCP and Citi DC?

Also, I have a $56500 limit (years of consolidating Chase cards) with about $700 on yearly spend on Freedom. In today's climate I am ripe for a credit line reduction, and I have no way to justify the high $56500 limit.

Re: Chase Freedom Product Trade

Anonymous — Sat, 06 Jun 2020 16:23:03 GMT

I'd keep it as is. Even if only two quarters per year offer 5% categories that you'd take advantage of, you're still coming out ahead compared to product changing to a CFU that earns less than the Citi DC.

Re: Chase Freedom Product Trade

TSlop — Sat, 06 Jun 2020 16:38:12 GMT

It doesn't sound like you'd use the CFU over the DC, so I'd keep it as a CF unless you decide to start traveling and want a Sapphire card. You are still getting 5% on that $700 and there is no fee.

Re: Chase Freedom Product Trade

Anonymous — Sat, 06 Jun 2020 17:00:55 GMT

@TSlop wrote:
It doesn't sound like you'd use the CFU over the DC, so I'd keep it as a CF unless you decide to start traveling and want a Sapphire card. You are still getting 5% on that $700 and there is no fee.

Right, but that's just $2.10 a year extra over putting that spend on the DC, which OP may not feel justifies keeping an extra card and remembering when to use it.

Re: Chase Freedom Product Trade

kdm31091 — Sat, 06 Jun 2020 17:32:19 GMT

As @Anonymous notes, the extra $2 in rewards over using the DC is pretty much neglible, and going out of your way to spend more in the 5% categories doesn't make sense either.

The card has no AF, so there's no big harm in keeping it, but it doesn't sound like an FU makes sense for the OP either.

Re: Chase Freedom Product Trade

Anonymous — Sat, 06 Jun 2020 17:41:06 GMT

I'm worried that my $56500 limit is going to stick out like a sore thumb in this current credit-limit slashing environment.

I have little use for the quarterly categories except for Costco, and Chase has not even done warehouses for all of last year and half of this year (at least).

I can leave the card as a Freedom, but I have no way to argue if they cut my limit to even $15000.

I spend maybe $3000 monthly, and 90% goes on Citi DC, and AMEX BCP gets the groceries. Chase has a groceries quarterly category, but it comes at the wrong time of year (2nd quarter) when I am still buying on AMEX BCP> I try to hit the $6000 cap on that card (AMEX BCP) for groceries before I use another card, which is usually only for the last 2-3 weeks in December, if that.

Thanks for all the input.

Re: Chase Freedom Product Trade

Anonymous — Sat, 06 Jun 2020 18:10:23 GMT

Chase isn't SYNCH, so I wouldn't worry too much over CLD. Although expecting any Lender to maintain a $56K CL while only using $700 per years seems very optimistic in any situation. It's really nothing you can stop if they so choose to act. I don't know the exact ussage required for maintianing big CL's, perhaps 30% at the least?

I'm curious how the rotating categories are becoming less and less useful, are they not consistent every year per quarter? Or do they change yearly such as on year it's gas in Q3 while the nextyears it's dining in Q3?

Re: Chase Freedom Product Trade

Anonymous — Sat, 06 Jun 2020 18:53:51 GMT

Well, the short answer is that the categories are becoming less useful to me and my lifestyle.

For example, I am retired and do not drive a lot. When I was working gas was a great category. Now, I drive maybe 300 miles every 6 months, so gas is really a meaningless category, to me.

We obviously are not eating out in restaurants due to today's situation, and probably will not resume anytime soon. We do take-out and delivery, but not enough for me to divert that spend from Citi DC to Freedom.

Drugstores are a useful category, but that is only one quarter, and for 3 months, I doubt that our spend is more than $175.

Movies were okay, but we do not go to those anymore, and even if we do it again, it would only be maybe $20 a month. Not really meaningful.

Groceries are a nice category, but I mainly use AMEX BCP, right up until the last 2-3 weeks in December, and Chase never uses that quarter for groceries.

Online spending I do very little of, so this is not meaningful.

Most of my spending is either 2%-related (Citi DC) or groceries (AMEX BCP). I have Target Redcard for Target purchases at 5%.

Janus, do you now see what I mean by "less useful" as it relates to MY spending?

Thanks.

Re: Chase Freedom Product Trade

UpperNwGuy — Sat, 06 Jun 2020 20:04:27 GMT

@Anonymous wrote:
What should do with this card, since almost all spending goes on AMEX BCP and Citi DC?

Also, I have a $56500 limit (years of consolidating Chase cards) with about $700 on yearly spend on Freedom. In today's climate I am ripe for a credit line reduction, and I have no way to justify the high $56500 limit.

Do nothing. Why do you think you need to do something? If Chase cuts back your credit limit, it won't hurt you because you have plenty of credit on other cards. But I don't think they'll cut you back.

Re: Chase Freedom Product Trade

Anonymous — Mon, 08 Jun 2020 01:38:01 GMT

I have the Freedom, Freedom Unlimited, and the DC card.

The DC card is great for flat rate, but it does have limited use. There are less perks, such as extended warranty. Look at it this way. If you buy a $1,000 item on your DC without an extended warranty vs using Freedom Unlimited, you earn $5 more in cash back. I think an extended warranty for one more year might be worth $5.

I use the DC for golf, lawn service, and any other non cat spend that a warranty or other benefit (such as trip interruption coverage) isn't needed. I'll use my Freedom unlimited for travel where trip cancelation for non refundable trip purchases might be needed, over my Propel card. I use the Freedom card for category spend and some general spend.

I agree, the chase 5% cats are getting less and less useful. This may be a way to phase out 5% categories.

If your spend doesn't mimic mine (specifically for Chase cards), then the Freedom unlimited might not be a good card to PC to (perks).

Re: Chase Freedom Product Trade

NRB525 — Mon, 08 Jun 2020 12:08:56 GMT

What is your list of cards, and their ages?

What are your FICO 8 scores?

Since you are retired, in what area of your financial life does credit score matter, really? Do you have any new credit applications planned?

Re: Chase Freedom Product Trade

Anonymous — Mon, 08 Jun 2020 14:07:14 GMT

My list of cards is as follows:

Chase Freedom $56500

AMEX BCP $30000 (groceries 6% and backup to Citi DC in 'physical' wallet)

Citi DC $24000 (main daily driver at 2%)

Target Redcard $2800 (hoping that this turns into Target MC, but not counting on it.

Kroger Mastercard $10000 (this card was an impulse/boredom app, I will get $100 statement credit, use it, and then let card doie in SD)

I have scores about 780-820, depending on which credit bureau.

House and cars paid off.

No new "app" plans.

Re: Chase Freedom Product Trade

Anonymous — Mon, 08 Jun 2020 14:08:45 GMT

Oh, yeah.

Chase Freedom 2002

AMEX BCP 2001

Citi DC 2018

Target 2010

Kroger MC one month ago

Re: Chase Freedom Product Trade

NRB525 — Tue, 09 Jun 2020 04:08:53 GMT

That's a nice card line up.

Even if Chase moved to close the account, which is very unlikely, the AMEX card has enough age that there would be no change in score from Age of Accounts. Even the credit limit reduction seems like it would be no impact to your profile.

Congrats on the nice card list. Keep putting a little spend on the Freedom card now and then, and expect no issues.