Chase Freedom has long been hailed as the best cashback credit card. The card let you get 3% cashback on gas, grocery and drug store purchases before moving to a “top 3 spending” in 15 categories model. But that was before the credit crisis made issuers across the board taketh away. Now, it’s a little bit harder to get cashback and you get a little bit less. Many compare the Chase Freedom card to the Discover More card (with some going as far as calling it a “watered down version”) but if used correctly, the Chase Freedom card can rack you up a decent amount of cashback. Read on to learn more or check it out yourself by applying for for the Chase Freedom card.

Highlights of Chase Freedom Card

• 10% to 20% cashback on purchases from selected merchants
• 3% cashback on rotating categories
• 1% cashback on every purchase with no caps
• $50 cash rebate after first purchase
• 0% APR for the first 6 to 12 months
• Access to Chase’s BluePrint budgeting suite
• No annual fee

$50 Cashback

First off, switching to Chase Freedom isn’t a bad idea because of the $50 you get after you make your first purchase.  You can get this $50 applied to your normal rewards or you can be cut a check that arrives in 6 to 8 weeks.

%0 Introductory APR

Like most competitive cashback credit cards, Chase Freedom comes with a 0% introductory APR. How long it lasts depends on your credit history. If everything checks out, you get 12 billing cycles of 0% APR. Otherwise, you can get as low as 6 billing cycles with the 0% APR. Also, regardless of your credit score, if you are delinquent or late on a single payment you immediately get popped over to the “default rate.”  After the introductory period, you get a 23.24% variable rate, unless your credit score is tip tops. For “elite” credit scores, you get 13.24% variable and for “premium” you get 18.24% variable.

Chase Freedom Categories Explained

With the new Chase Freedom card, it’s all about the categories. All of your purchases wind up falling into one of 15 different spending categories.  Like Discover More Card, the categories are picked (seemingly) arbitrarily each quarter and there is a posted schedule when you log in so you can plan for the changes. Currently, when you log into your Chase account, it just lists out the 15 categories, which include:

• Movie Theatres
• Gym Memberships

• Gas Stations & Convenience Stores
• Pet Stores & Veterinarian
• Phone/Cell Phone Bills
• Quick Service & Fast Food Restaurants
• Utilities (Gas, Electric, etc.)
• Drugstores
• Cable/Satellite TV & Internet Providers
• Department Stores
• Beauty Salons & Spas
• Movie Rentals
• Dry Cleaners
• Local Commuting
• Grocery Stores

Online Cashback

Where the real cashback earnings kick in is through the online shopping portal. This is somewhat standard practice for cashback cards and can be a quite lucrative way to save on common purchases (as long as you remember to check the Chase portal before making big purchases). To accrue cashback rewards from Chase’s partners, all you have to do is shop through https://www.rewardsplusshopping.com/ and browse through the retailers. There are some pretty big names here, such as Barnes and Noble, Target, HP and Hotels.com, so it’s worth a gander if you’re planning on a big purchase. According to Chase, there are merchants that offer up to 20% cashback but most hover between 6% and 12% (which ain’t bad).

BluePrint

Chase cardholders also get access to BluePrint, which is basically a suite of budgeting tools. They advertise it as a way to pay no interest on certain purchases, but really, the reason you don’t pay interest on those purchases is because you pay them off before the grace period is up. It’s more of a self awareness thing than an interest break, but it’s kind of neat nonetheless. Check out our inside look at Chase BluePrint for more information.

Also, as one MYC reader (john) pointed out:

The possible catch to the program is this. In general, charges begin accruing interest from the date of purchase (assuming you had a balance at the beginning of the billing cycle). If you pay the full blue print payment, you will avoid paying interest on the full pay items. HOWEVER, if you do not pay the full blue print balance, there is no “fee” or “penalty” (as in you’re credit won’t be harmed), but you will be charged interest from the first day of the billing cycle on those charges, instead of from the date of purchase. This results in a slightly higher interest payment if you fail to pay the full pay payment.

So, take note. Plus, it’s always better to pay off more than your minimum balance, fancy software suite or not.

Balance  Transfers

Balance transfers and cash advances come with a 3% fee with no apparent cap, so be careful. If you’re moving around $5,000, you’ll pay a $150 fee.

All in all, the Chase Freedom card remains a fairly decent cashback credit card. She ain’t quite what she used to be, but with $50 cashback after the first purchase and plenty of opportunities to get over 5% cashback, it’s certainly nothing to turn your nose up at. In fact, it’s still the card that’s in my wallet.

Apply for the Chase Freedom card now.

Related posts:

1. Credit Card Review: Chase Freedom
2. Credit Card Review: The New Face of the Discover® More(SM) Card
3. Credit Card Review: Biodegradable Discover® More (SM) Card
4. An Inside Look at Blueprint: Full Pay
5. My first Card Review: AMEX Blue Cash Credit Card