Buzz
Last week, Chase launched new credit card options, including the Chase Freedom Flex, along with new cash-back rewards for the existing Chase Freedom Unlimited. Both will be available starting September 15, 2020.
Benefits of the Chase Freedom Flex
The Chase Freedom Flex is a $0 annual fee World Elite Mastercard that comes with a wide range of benefits. You can earn 5% cash back (up to $1,500) on quarterly rotating categories like grocery stores, gas stations, gym memberships, and more. However, to earn this 5%, you must activate the categories each quarter, or you'll only get 1% cash back.
The Chase Freedom Flex also gives you 5% cash back on travel booked through the Chase Ultimate Rewards portal, 3% on dining, 3% at drugstores, and 1% cash back on all other purchases without limits.
Typically, credit cards with 5% rotating cash back don’t offer more than 1% on other categories. Therefore, the 5% on travel, 3% on dining, and 3% at drugstores make this card stand out.
For new cardholders, Chase offers a $200 sign-up bonus if you spend at least $500 within the first three months. Additionally, you can earn 5% cash back on grocery store purchases (excluding Target or Walmart) on up to $12,000 during the first year.
As a World Elite Mastercard holder, you'll enjoy benefits such as $800 per claim ($1,000 annually) in cell phone insurance, a $10 Lyft credit for every five rides each month, 5% cash back on Boxed purchases, a complimentary ShopRunner membership, and Double VIP+ points for Fandango movie tickets. You'll also benefit from two additional perks: 5% cash back on Lyft rides through March 2022, and a free three-month DoorDash trial with a 50% discount for the following nine months.
Benefits of the Chase Freedom Unlimited
Chase Freedom Unlimited cardholders, who currently earn 1.5% cash back on all purchases, are getting an upgrade. The card will now offer new cash-back categories, including 5% cash back on travel booked through the Chase Ultimate Rewards portal, 3% on dining, and 3% at drugstores.
Chase Freedom Unlimited cardholders will also benefit from 5% cash back on Lyft rides through March 2022, plus a free three-month DoorDash trial with a 50% discount for the subsequent nine months.
New applicants can earn the same $200 sign-up bonus after spending $500 within the first three months, along with 5% cash back on grocery purchases (excluding Target and Walmart) up to $12,000 during the first year.
Should You Go for the Chase Freedom Flex or Chase Freedom Unlimited?
While the new Chase Freedom Flex offers enhanced perks, both cards come with strong cash-back rewards, and neither charges an annual fee. According to Doctor of Credit, existing Freedom cardholders can apply for the Chase Freedom Flex and still qualify for the sign-up bonus.
A major downside of applying for either of these cards is the potential activation of Chase’s 5/24 rule, which could temporarily disqualify you from being approved for other Chase travel rewards cards. If you're aiming to collect travel rewards, make sure to check your credit reports before applying for the Chase Freedom Flex or Chase Freedom Unlimited. It's important to know how many cards you've applied for in the past 24 months.
Understand your credit card spending habits
One significant risk of any rewards credit card is the temptation to overspend. If you're prone to overspending with credit cards, rewards cards often come with higher interest rates, making them harder to pay off. If you’re not sure you can pay off the full balance each month, it might be wise to consider a different product.
