It has gotten difficult to watch TV and not see a Chase Freedom rewards card commercial. The recent marketing onslaught, which shows consumers opting for the largest cash back credit card getting pummeled by quarters, is a not so subtle attack on Discover. Nevertheless, it does highlight the key differences between the Chase Freedom card and competing cash back cards that advertise, but fail to deliver in the cash back rewards arena.
Chase Freedom Cash Back Rewards Overview
The Chase Freedom card’s cash back rewards program is among the best available and Chase backs this up by offering applicants massive sign up bonuses. At present, the Chase Freedom $200 promo is the largest, but there is also a Freedom card with a $100 bonus as well as a third version with a $50 bonus. While the promotional bonuses attached to these offers vary, the underlying Freedom rewards program is the same. Card-holder’s earn 1% cash back on all purchases, plus 5% cash back on up to $1,500 of purchases in categories that rotate four times a year. Apart from the limits on Freedom’s 5% cash back reward categories, there is no annual limit on cash back earnings.
The full 1% cash back on all purchases differs from Discover cards, as the fine print for Discover offers reveals that the first $3,000 spend annually only earns 1/4%. Additionally, the ability to earn 5% cash back on up to $1,500 of spending every quarter is five times larger than Discover’s $300 limitation. Lastly, the lack of a limit on rewards earned sets it apart from Citi’s Dividend, which is very similar, but imposes a $300 annual cap on cash back earnings. Thus, in comparison to the competition, the Chase Freedom card’s rewards program offers significantly better earning potential.
Chase Freedom $200 vs. Chase Freedom $100 Promotions
While both the Chase Freedom $200 and Chase Freedom $100 offers provide consumers with the same rewards earning ability, these promotions differ significantly in the area of rates. In the tables below, you can view these key discrepancies.
- This offer is for people with a good to excellent credit history which means, among other things, that your credit history is clear of bankruptcy and seriously delinquent accounts
- Earn $200 Bonus Cash Back after you make $500 in purchases in your first 3 months
- 5% Cash Back on up to $1,500 spent at gas stations and on Amazon.com from 1/1/12 - 3/31/12.
- You'll enjoy new 5% categories every 3 months like grocery stores, restaurants and even airlines. It's free and easy to activate your bonus each quarter!
- Unlimited 1% Cash Back on all other purchases
- Up to an additional 10% Cash Back when you shop online at select merchants through Chase
- No annual fee and rewards never expire
N/A*
15.99-22.99% (Fixed)*
$0.00
Excellent Credit*
- This offer is for people with a good to excellent credit history which means, among other things, that your credit history is clear of bankruptcy and seriously delinquent accounts
- Earn $100 Bonus Cash Back after you make $500 in purchases in your first 3 months
- 0% Intro APR for 12 months on balance transfers and 6 months on purchases
- 5% Cash Back on up to $1,500 spent at gas stations and on Amazon.com from 1/1/12 - 3/31/12.
- You'll enjoy new 5% categories every 3 months like grocery stores, restaurants and even airlines. It's free and easy to activate your bonus each quarter!
- Unlimited 1% Cash Back on all other purchases without limits on what you can earn and up to an additional 10% Cash Back when you shop online at select merchants through Chase
- No annual fee and rewards never expire
0.00%* for 6 months on purchases*
11.99-22.99% (Fixed)*
$0.00
Excellent Credit*
As you can see, the lowest available APR on the Chase Freedom $200 card is 15.99% versus 11.99% on the $100 version. This higher rate should act as a deterrent to consumers who have a history of carrying balances from month to month. Those who fall into this category should consider the Freedom $100, as over time the lower interest rate can lead to more savings.
The lack of a 0% introductory rate on purchases or balance transfers on the Chase Freedom $200 card is another factor consumers who have credit card debt or tend to carry balances should consider. Once again, those who fall into the balance carrying category can likely reap more savings by opting for the $100 version and utilizing the 0% rate promotion.
Ultimately, the interest rate differences are the only factors that separate the Chase Freedom $200 card from the $100 Chase Freedom card. Thus, consumers interested in this product simply need to weigh whether an extra $100 of cash back while provide more value than lower rates. Once this determination is made, choosing a Freedom card is a pretty straightforward process.
You can learn more and apply for the $200 offer here or the $100 offer here.
February 20th, 2012 at 5:39 am
I would have totally went for the $200 Freedom card, but you’re right that it makes more sense to get the $100 bonus and the lower rate! .. Martha Patten
February 21st, 2012 at 3:41 am
I saw your report and its really good. Great work! Walker Fassett
February 21st, 2012 at 1:34 pm
Thanks Walker. Glad to help.
February 21st, 2012 at 1:36 pm
Martha,
The Chase Freedom $200 is a great deal for people who have no debt and don’t carry balances from month to month, but not so good for those who do either of the two.