Who is the Chase Freedom Designed For?
Chase's Freedom Card is one of the best cash back credit cards with no annual fee available in 2015. It is designed for people who want a generous cash back card but don't want to pay an annual fee. The cash rewards program includes a substantial signup bonus and up to 5% in cash back in certain purchase categories.
What are the Chase Freedom's Interest Rates?
Interest rates go from 14.24% to 23.24% depending on your credit score. The range of interest rates is based on a rate of 10.74% to 19.74% above prime rate, which in January 2015 was 3.25 percent.
Freedom offers an attractive 0% introductory rate on purchases and balance transfers during the first 15 months. However, there is a 3% balance transfer fee to consider. The penalty rate if you're late on your monthly payments is 29.99%, and the cash advance rate is 25.24%.
What Are Chase Freedom's Fees?
Freedom is not a travel-friendly credit card. It charges 3% on the purchase amount of each foreign transaction. There is a $10 or 5% cash advance fee, whichever is greater, and a $5 or 3% balance transfer fee.
As well as a higher interest rate, cardholders must pay a late payment fee ranging from $15 to $37, depending on the balance of the late payment, and a $37 return payment fee.
What Is Chase Freedom's Rewards Program Like?
Freedom's reward program is straightforward and simple to use. Cardholders get 1% cash back on all purchases and 5% cash back on up to $1,500 in purchases in revolving categories every three months. In 2015, for instance, members could save 5% in grocery stores from January to March, in dining from April to June, in gas stations from July to September and on Amazon.com from October to December.
What about Chase Freedom's Signup Bonus?
Chase's Freedom card offers a $100 cash bonus, if you spend a minimum of $500 within the first three months. You can qualify for an additional $25, if you add an authorized user to the card. The bonus is only for new members and the account must be open and payments current for the bonus to be honored.
Does the Chase Freedom Have Any Other Benefits?
Although primarily a cash back card, Freedom tracks rewards as points that can be converted into cash or redeemed through any of the redemption opportunities offered by the Ultimate Rewards program. These include flights, car rental, hotels and Amazon.com purchases. Every point is worth a cent. So 20,000 points can be redeemed for $200.
How Is Chase Freedom Better Than Other Credit Cards?
It is rare for a card with no annual fee to allow users to rack up rewards as high as 5% of purchases. With a little planning, you can earn up to $300 a year just on the bonus categories. Add to that the $125 signup bonus, the no limit rewards on additional purchases, and that you can convert the points to Chase's Ultimate Rewards program, and you have a winning card for people with good credit who don't want to pay annual fees.