Chase Freedom Flex 2020 Review – Forbes Advisor - Forbes

Chase Freedom Flex 2020 Review – Forbes Advisor - Forbes

Chase Freedom Flex 2020 Review – Forbes Advisor - Forbes

Posted: 15 Sep 2020 03:00 PM PDT

Earning Rewards

The Freedom Flex comes with a two-part welcome bonus: Earn a $200 Bonus after you spend $500 on purchases in your first 3 months from account opening. And earn 5% cash back on grocery store purchases (not including Target® or Walmart® purchases) on up to $12,000 spent in the first year.

Cardholders will also earn 5% cash back on rotating quarterly categories on up to $1,500 in spending each quarter, 5% cash back on travel booked through Chase Ultimate Rewards, 3% cash back on dining and drugstore purchases. All other purchases earn 1% cash back.

Redeeming Rewards

Redemption options on the Freedom Flex include:

  • Travel booked through Chase Ultimate Rewards (1 cent per point)
  • Statement credit (1 cent per point)
  • Direct deposit (1 cent per point)
  • Gift cards (1 cent per point)
  • Amazon purchases (0.8 cents per point)

Rewards never expire as long as your account is open and remains in good standing. Earnings on the Freedom Flex can be worth even more when combined with the earnings on a card like the Chase Sapphire Preferred® Card, Chase Sapphire Reserve® or the Ink Business Preferred® Credit Card.

Or you could maximize your earnings by transferring your Ultimate Rewards points to Chase's airline and hotel partners including United, Southwest Airlines and Hyatt. This is only available if you also hold one of the cards on which transfers are permitted.

Rewards Potential

To determine the rewards potential of the Chase Freedom Flex card we have to look at the bonus categories and calculate what an American household might spend in those areas. Chase doesn't release the quarterly categories for the Freedom Flex card far in advance so we looked at four quarterly categories that have been announced for the Freedom card as comparison.

  • Q4 2019: Department stores; PayPal and Chase Pay
  • Q1 2020: Gas stations, streaming services, internet, cable, phone services, Lyft
  • Q2 2020: Gym memberships, grocery stores
  • Q3 2020: Amazon and Whole Foods Market

Forbes Advisor uses data from various government agencies to determine both baseline income and spending averages across various categories. The 70th percentile of wage earning-households bring in $100,172 annually and we base spending on that number.

With that in mind, many families spend at least $1,500 per quarter on the bonus categories listed based on U.S. Government data. Chase maxes out quarterly earnings bonuses at $1,500 per quarter or $6,000 per year. When maxed out, a Chase Freedom Flex cardholder will earn 30,000 Ultimate Rewards from the quarterly bonus categories alone.

In addition to the quarterly categories, Chase offers the following spending categories:

  • 5% on travel purchased through Chase Ultimate Rewards
  • 3% on dining purchases, including take out or eligible delivery services
  • 3% on drugstore purchases
  • 1% unlimited cash back on all other purchases

Forbes Advisor estimates that our sample household spends $3,185 on travel, earning 15,925 Ultimate Rewards points, assuming that all purchases are made through Chase Ultimate Rewards. Additionally they spend $5,384 on dining and at drugstores, earning 16,152 Ultimate Rewards points.

We estimated that the remaining annual household credit card spending that could be put on a credit card is $17,841. If all of that spending is put on the Chase Freedom Flex card, the cardholder would earn an additional 17,841 Ultimate Rewards. The total earnings of 79,918 Ultimate Rewards per year are in addition to earning the first-year welcome bonus.

Note that Ultimate Rewards cards are best taken as a family. If a Freedom Flex card is used in conjunction with a Sapphire Preferred, Sapphire Reserve or a Business Ink Preferred, the rewards can be combined into one account. That account will have the ability to transfer Ultimate Rewards to Chase's airline and hotel partners, potentially making the points worth much more than the 1 each they are worth if you only have a Freedom Flex card.

Know that existing Freedom cardholders can also request a product change to the Freedom Flex from the original Freedom card, which Forbes Advisor recommends doing once the product goes live. Doing so will allow you to utilize the new category bonuses without having to ding your credit score or affect your 5/24 status with a new application.


Popular posts from this blog

Window for Small Businesses to Apply for PPP Funding Closes Saturday - Bay News 9

List of Easy Approval Net 30 Accounts for 2020 - Nav

This new business index offers a more accurate way to forecast recessions - MIT Sloan News