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A couple of weeks ago Chase announced that its longstanding Chase Freedom credit card would be replaced by a new card with better earnings and better benefits too. That new card is the Chase Freedom Flex credit card and it’s now live online and applications and product changes are now being accepted.
All You Need To Know About The Freedom Flex Credit Card
- $0 (zero)
- New cardholders will earn $200 (or 20,000 Ultimate Rewards Points) after they spend $500 on the Freedom Flex credit card in the first 3 months of opening their new account.
- New cardholders will earn 5% cash back (or 5 points/dollar) on grocery store purchases (not including purchases made at Walmart or Target) on up to $12,000 spent in the first year.
Note: Chase is classifying the Freedom Flex credit card as a new product so the welcome offer is available to current holders of the Chase Freedom credit card and the Chase Freedom Unlimited credit card.
Standard Earning Rates
- 5% cash back (or 5 points/dollar) on up to $1,500 of spending in quarterly revolving categories.
- 5% cash back (or 5 points/dollar) on travel purchased through Chase’s travel portal.
- 3% cash back (or 3 points/dollar) on dining (includes take-out and delivery)
- 3% cash back (or 3 points/dollar) on spending at drugstores
- 1% cash back (or 1 point/dollar) on spending in all other categories
The Chase Freedom Flex credit card comes with the same earing rates as the outgoing Chase Freedom card but also adds in between 3% and 5% cash back (3-5 points/dollar) in three new categories too.
Bonus Earning Rate
- 5% cash back (or 5 points/dollar) on Lyft rides through March 2022
This is the same earning rate that’s currently offered on the $95/year Chase Sapphire Preferred credit card.
The outgoing Chase Freedom Card is a Visa card but the new Freedom Flex credit card is a “World Elite” Mastercard which means that cardholders get a set of prepackaged benefits that the Freedom credit card never offered. These include:
- Cell phone protection up to $800 per claim and $1,000 per year (max 2 claims per year)
- Monthly $10 Lyft credit after 5 rides are taken
- 5% Cash Rewards on Boxed Wholesale orders for use on future purchases.
- Complimentary ShopRunner membership (2-day shipping at hundreds or retailers)
- $5 off movie tickets with Fandango for every 2 movie tickets purchased
The Chase Freedom Flex also offers:
- Trip cancellation/interruption insurance – up to $1,500 per person and $6,000 per trip
- 120-day purchase protection – up to $500 per claim and $50,000 per account
- Extended warranty protection – this extends the time period of the U.S. manufacturer’s warranty by an additional year, on eligible warranties of three years or less.
- Secondary rental collision cover
- 3-month complimentary DashPass membership – the DoorDash service that offers unlimited free deliveries on eligible orders over $12.
Why I Love The Freedom Flex Credit Card
As I run down the list of earning rates and benefits that the Freedom Flex credit card offers, I keep having to remind myself that this is a card that doesn’t charge an annual fee. That’s incredible.
The Welcome Offer
The great news starts with the welcome offer where the $200 bonus is essentially free cash (assuming you never carry a balance and get charged interest) which can be earned relatively easily (it only requires $500 of spending) and while earning a fantastic rate of return.
If you happen to have a Chase Sapphire card (more on that below) the $200 bonus can be taken as 20,000 Ultimate Rewards Points which I value at $300.
The Rates Of Return
3% – 5% cash back is an amazing return to be given by a no-annual-fee credit card, but for holders of one of the Chase Sapphire cards (most people should probably hold one of these cards), it gets better.
The cash back that the Freedom Flex credit card offers can be taken in the form of Ultimate Rewards Points which, in turn, can be transferred to a variety of airline and hotel loyalty programs where they can be used to extract considerably more value than the basic cash back that the Flex card offers.
I value Chase Ultimate Rewards Points at 1.5 cents each (based on the value I know I can easily get out of each point) and that means that in effect, the new Chase Freedom Flex credit card is offering rebates of 7.5% on…
- Grocery spending (up to $12,000 in year 1)
- Lyft rides through March 2022
- Travel booked through Chase
- On all quarterly spending categories
…and 4.5% rebates on:
- Spending at drugstores
- Spending on dining (including takeaway and delivery)
There are a number of premium credit cards on the market (annual fees of over $200) that don’t offer rebates as good as these…and yet the Chase Freedom Flex doesn’t charge an annual fee at all.
The Excellent Benefits
As if all of that wasn’t enough, just take a look at the list of benefits that a cardholder gets without having to hand over a dime in fees – the cell phone insurance alone is a great benefit to have, but Flex cardholders also get Lyft credits, Fandango credits, Boxed rewards and free ShopRunner membership all of which offer genuine savings.
On top of the above, the Freedom Flex credit card also offers trip interruption/cancellation insurance (useful if you’re using the Flex Card to earn 5% back on travel spending with Chase), extended warranties, and purchase protection as well.
It’s genuinely incredible that a card with no annual fee can offer such an array of benefits that actually add value.
The Chase Freedom Flex credit card has just been launched and based on everything I’ve seen so far, it’s already a “must-have” credit card for those of us who love Ultimate Rewards. The earning rates are impressive (more so if this card is paired with one of the Sapphire cards), the welcome bonus is generous, and the benefits that come with the card can be money savers all on their own. So far, this is definitely the star credit card of 2020.