Why I'm Applying For The New Chase Credit Card

 

It's unusual for credit card companies to launch a new credit card product and especially to launch one now during a global pandemic, but Chase has announced the new Freedom Flex coming Sept. 14th. The current Freedom credit card will be discontinued. But the Freedom Unlimited card will continue to be offered. This straightforward cashback card earns 1.5% on all purchases. 

Now, the Freedom card is my fall back personal credit card, and the Freedom Unlimited card works the same way. Both earn Chase Ultimate Rewards Points which are super versatile since you can transfer them to dozens of airlines and a few big hotel chains. Plus you can use them in the Chase Travel Portal. And if you hold a Sapphire Preferred or Sapphire Reserve card, the points are now valued at 1:1.25 or 1:1.5 in the portal or cashback. 

A big perk of the current Freedom card is the quarterly rotating 5% cashback categories such as Amazon, gas stations, streaming services, groceries, and more. If you max out those categories, it's a huge benefit. 

The Freedom Unlimited card will offer some new benefits:

• 5% back on travel purchased through Chase Ultimate Rewards
• 3% back on dining
• 3% back at drugstores

There’s no activation required — all three will become available beginning Sept. 15. The Freedom Unlimited currently offers $200 bonus after a $500 minimum spend in the first 3 months. 

The new Freedom Flex comes with a $200 bonus after a $500 minimum spend in the first 3 months also. Plus 5% on groceries up to a max of $12,000 in the first year, unfortunately, Target and Walmart are excluded from the bonus. There is no annual fee. It will also include the rotating 5% cashback categories and the new bonus categories included with the Unlimited card. 

The Flex card is considered a new product since it will be a Mastercard instead of a Visa so if you currently have a Freedom or Freedom Unlimited card, you are eligible to apply for this card as a new customer rather than upgrade and secure the bonus 

So if you have a Chase Freedom card like I do, it probably makes sense to switch to the new Flex card. If you have the Chase Freedom Unlimited card, the only difference is that that new Flex card is a Mastercard instead of a Visa. Mastercard comes along with World Elite Benefits that include free shipping with ShopRunner, $10 credit with Lyft when you take 5 rides in a month, and more. You can read about all the benefits here. 

So it probably makes sense to switch to the new Flex card for you as well. If you are over Chase 5/24 rule (you have opened 5 credit cards with any company in the past 24 months), you can call and ask for a product change. You won't be eligible for the welcome bonus, but you will get all the new credit card benefits. If you are under 5/24, you need to decide whether it makes sense for you to use one of those slots for this card. 

Watch for the new Flex card coming Sept. 15th.