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Chase Freedom: Credit Card For Cash Back Rewards

October 23, 2009 by Silicon Valley Blogger

Not long ago, Advanta closed my business card account when their credit card division folded. I had then expressed my need for a new credit card. Now that I got myself a replacement business card, it seems that I may need to get a new consumer card as well. I have a Bank of America Upromise rewards card that has no annual fees, but I’m hearing rumblings that fees may be introduced for this card soon.

Given that my #1 requirement for a credit card is that it has NO annual fees, then I may have to start shopping around for a possible replacement. I pay my credit card bills in full each month, so I’m most interested in rewards credit cards, and in particular, cash back credit cards that have NO fees. On that note, I’ve decided to be proactive and look at a few such cards in more detail, including Chase Freedom (SM).

Chase Freedom: Credit Card For Cash Back Rewards

The Chase Freedom (SM) credit card is a cash back rewards card with the following features:

• Get a $50 cash bonus on first use or once you’ve made your first purchase.
• Earn up to 20% cash back at select retailers when you shop through Chase.
• Earn 3% cash back in popular rotating spending categories such as gas, home improvement and department stores.
• Earn 1% for all other purchases at all times.
• 0% intro APR on purchases for up to 12 months, based on your credit history.
• No annual fee.

Chase Freedom Card Rewards

Here are a few more details about the rewards: as a new cardmember, you’ll actually qualify for the $50 bonus under many scenarios. You’ll receive the bonus after your first use, which includes making a purchase, doing a balance transfer, or using checks, excluding cash advances.

The cash back rewards are unlimited, which you’ll earn when you make purchases. Note that you won’t earn any rebates when you do a balance transfer or get a cash advance. Also, you’ll qualify for additional 3% quarterly cash bonus rewards when you spend on certain categories. For the 10% to 20% cash back, you’ll have to shop online using your Chase account and using Chase’s Ultimate Rewards Mall.

Chase Freedom Card Terms

Other interesting things to note about this 0% interest credit card (for new purchases): This is a 0% APR credit card that won’t charge you interest on purchases made during an intro period. The intro period can either be 6 months or 12 months based on your credit history.

After the intro period, the card’s regular rates kick in, with variable terms depending on which pricing/rate category you fall under: Elite, Premium or Standard. The card has different rate structures based on your credit rating, so unlike other cards where everyone may receive the same rates at all times (barring some exceptions here and there), this card has variability built into its terms.

For instance, if you’ve got excellent credit, you’ll likely be receiving the Elite pricing terms, and with a more mediocre credit score, you may end up with the Standard terms. The APRs are tied to the prime rate, which is one benchmark for lending used by financial institutions. Chase also reserves the right to decide which rates to offer you. All applications will at first be considered for the most attractive terms, but depending on the credit information the issuer pulls from your reports, your rates will be adjusted accordingly. There is the possibility that you may end up with alternative rates or that your application may be denied.

Also, while this card accepts balance transfers, it’s not really considered a balance transfer card. If you transfer your balance to this card, you will be charged a prime rate plus some additional APR based on your pricing/rate category (as mentioned above).

Other Rewards and Cash Back Credit Cards

Chase Freedom (SM) has been in my list of top cash back credit cards for a while now and I’ve eyed it as a card I’d consider applying for when the need arose. For the record, here are some rewards cards that I’ve been tracking and which I’ve featured before:

• Credit Card Research: IberiaBank Gold Cash Back Rewards Card. Since I get emails all the time asking about different credit cards and if people should be signing up for this, that, or the other...
• The Best Credit Card for you! Credit cards get a lot of bad press, but if you can control your spending and fit into one of these categories, it can be...
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• best cash reward credit cards For years I built up miles using my reward credit cards, only to find out that those miles were worth less and less.  About a...
• Credit Card Companies Hiking Rates Before 2010 Changes On February 22, 2010, credit card companies will no longer be allowed to suddenly increase interest rates and penalty fees so many companies are taking...