Chase Freedom Flex or Chase Freedom Unlimited?

Anonymous · ‎12-03-2020

Good evening.

I have a question. When the Freedom card (which to me had unuseful quarterly categories, with one or two exceptions) was able to be traded to the new Freedom Flex, I jumped at it, mainly for the new 3% categories of dining and drug stores.

I have not had much luck with the quarterly categories for a few years now, with the exception of the 5% for my internet and phone from ATT.

I use Citi Double Cash for 2% everywhere, and AMEX BCP for 6% on groceries (already maxed until 1-1-21).

I was thinking about converting Flex into Freedom unlimited.

Why?

Because I would still have the new 3% categories (which don't really get heavy use, especially the dining category). I would get 1.5% on all other purchases. I was thinking this would be a nice card to have for the 1.5%, in case Citi started getting funny with the 2% on all purchases. It has been 6 years since they started this card, and I am wondering how long it will be before they start wanting to cap the 2% at a dollar amount.

I will still use Citi for the 2%, but maybe having Chase Freedom Unlimited as a 1.5% backup is a good idea, in case something goes wrong with Citi? I will also still use Chase for 3% for dining and drugstores, whether I convert to Freedom Unlimited or not. Plus, Freedom Unlimited is a Visa. Since I converted to Flex, all I have is AMEX with two mastercards. Plus, Flex is not contactless.

In any case I wouldn't do anything until I see Chase Flex's first quarterly category (due to be announced about 12-15).

Any thoughts?

wasCB14 · ‎12-03-2020

Keep in mind Citi already cut a lot of the protections from Double Cash, and the more-than-occasional incompetence from their CSRs suggests they don't pay well enough on that front to attract good people. The ability to get 2.5% in travel value by also having a Premier is also going away (or has already).

Also some people are going to redeem for statement credits and get slightly less than 2%.

Citi doesn't usually pay a SUB on DC, and instead has advertised it fairly heavily. If they decide 2% is unsustainable then quite a lot in the rewards landscape is in doubt.

I would favor going for an occasionally-useful 5% card.

Personal spend: Amex Gold, Amex Schwab Plat., BofA PR+CCR(x2), Costco
Business use: Amex Bus. Plat., BBP, Lowes Amex AU, CFU AU
Perks: Delta Plat., United Explorer, IHG49, Hyatt, "Old SPG"
Mostly SD: Freedom Flex, Freedom, Arrival
Upgrade/Downgrade games: ED, BCE
SUB chasing: AA Platinum Select

Kforce · ‎12-03-2020

@Anonymous wrote:
Because I would still have the new 3% categories (which don't really get heavy use, especially the dining category). I would get 1.5% on all other purchases. I was thinking this would be a nice card to have for the 1.5%, in case Citi started getting funny with the 2% on all purchases. It has been 6 years since they started this card, and I am wondering how long it will be before they start wanting to cap the 2% at a dollar amount.
Very unlikely, and if they do nerf it, there are about 15 other issuers of 2% cards. (Over 50% are Visa)

I will still use Citi for the 2%, but maybe having Chase Freedom Unlimited as a 1.5% backup is a good idea, in case something goes wrong with Citi? I will also still use Chase for 3% for dining and drugstores, whether I convert to Freedom Unlimited or not. Plus, Freedom Unlimited is a Visa. Since I converted to Flex, all I have is AMEX with two mastercards. Plus, Flex is not contactless.
Why get a 1.5% instead of a backup 2% , or 3% in 3-4 categories or just keep the 5% in rotating
Sounds like going backwards too me. After having a 3%, I almost don't use the 2%, and would not use a 1.5 at all.

Any thoughts?

If you live in any of about 12 states "Bank or the West", has a 3% (grocery, gas, restaurant, fast-food), NAF card that is nice for cashback and not wanting a rotating card or picking categories every quarter. A good wallet card for use with a 2% cashback as a combo.

Was my most swiped card before the 3% USAlliance.

Anonymous · ‎12-03-2020

I have them both, and I have the DC card too. Aside from the 0% promo which causes me to spend more on the CFU, now that there's only just over 6 months left, I'm going to start moving more spend to my DC card and away from the CFU. After this shift, which of the 2 is better?

Its a tough call. Paypal with Paypal key is an easy 5% category to max out. I too have the 2% cut on the DC in mind, but I don't think it's likely any time soon.

1.5% cash back with extended warranty is better than 1% cash back with extended warranty. So that's a reason for me to keep the CFU around.

At this point I don't want to get rid of either. But if I was forced to choose on closing one, it would probably be the Flex, as I have another decent 5% category card in Discover.

Take away my Discover card, I might choose the CFF over the CFU. Take away Paypal, I would then stick with the CFU. So its a fine line with me based on one or two things.

fatcomic · ‎12-04-2020

@Anonymous my 2 cents, and my lesson learned. If I were you, I would hold off on the PC. I did the same thing, I jumped at the chance to convert my (old regular) Freedom to the Freedom Flex to get the 3% dining. I already had a Freedom Unlimited with a lower limit that my teenager uses, so I thought it would be great to use the FF for dining and get the 3% too, plus the bonus 5% categories. I had no intentions to get any other cards for the foreseeable future. Fast forward a few months, I kept getting the pre-approved check mark on the CSP with the 80K SUB and I couldn't resist. Now I don't have a FF or FU slot open to convert to if I ever decide to downgrade the CSP.

You would only be gaining 0.5% on all spending other than dining/drugstore/lyft purchases by converting. You would lose the 5% bonus categories, usually they have a quarter with something useful for most folks. I think you would easily make up the difference in the 0.5% everyday spending, especially since it is your secondary card, in just one quarter of 5% spending. Plus, you would still have room to grow your Chase card portfolio in the future if you wanted to.

Anonymous · ‎12-04-2020

If I were in your position, I would not product change the Flex. I don't see why Citi would nerf the double cash. But either way, if I wanted a general cashback card I would simply open a new one instead of PCing. Either the Citizens Bank Cashback plus World mastercard (1.8%), the PayPal World mastercard (2%), or the SOFI card (2%). I would only consider the Freedom Unlimited if you had, or intended on getting, either the CSR or CSP and you wanted to transfer the points to travel partners to increase their point value.

Also, for the 5% cashback, this quarter is very easy to use. If you setup your Flex with PayPal Key, you can use their key to get 5% back on basically all purchases online or over the phone.