Credit Cards Tips for You

It seems like just yesterday (it was yesterday) that I commented on how Chase is pulling out all the stops with signing bonuses lately, especially on travel rewards credit cards. And now theyve done the same for the cashback crowd, by bumping the bonus on the Chase Freedom card from $150 to $200.

Mind you, these arent miles, so you dont have to deal with the blackout dates and other restrictions that plague travel bonuses.  This is cold, hard, cash (or technically, a check). You do have to spend $1,500 over a period of 6 months to make it happen, but then Chase will credit you with 20,000 points that you can immediately redeem for $200.

Its though, so strike while the irons hot:

Earlier in the year, the credit card landscape was all about blockbuster rewards deals.  Citi was offering 75,000 AAdvantage miles, Capital One offered up to 100,000 No Hassle Miles, and Chase was offering 100,000 BA Miles.  But now that the smoke on these deals has cleared, it seems like the countrys #1 credit card issuer is trying a different tactic.

Rather than having a single premier card with an absurd signup bonus, they are increasing the bonuses on almost all of their cards, and also adding perks. For example, now the Sapphire Preferred offers 50k points AND no foreign transaction fees. And theyve been making similar changes across most of their portfolio. Naturally, $200 cash back was the next step for the Freedom card.

It seems like competition is still strong amongst the major credit card issuers to steer low-risk customers toward higher rewards, and away from things like debit cards, which are losing their profit-generating luster.

Our relationship with the Chase Freedom card has been a roller coaster ride. We publicly lambasted the Freedom rewards program a while back, when Chase was in the process of converting all of their customers from 3% on your favorite categories to 5% on categories we choose, when we choose, and you have to opt in or youre screwed. We wrote a handful of articles for different outlets about why 5% is a bullsh*t number, and we still refuse to give this card (and similar cards from Citi and Discover) full 5% credit in our calculator and search results.

But slowly, Chase has started to woo us back to its side. Having seen enough quarterly rotations come and go, its now clear that they are at least trying to align your rewards with your spending throughout the year. For example, July through September you earn the 5% rebate on gas, hotels, and airlines, corresponding with the summer vacation and travel season.

We also realized along the way that the opt-in requirement works retroactively.  So if its August and you just realize you forgot to log in to their site and sign up for your 5% rebate, you can still do it and get your full rebate for the whole quarter.  Its still annoying that you have to to pay you (why isnt it automatic?) but at least they dont screw you out of rewards if youre a day or two late.

And finally, the bonuses just keep getting better.  First it was $50, then it went to $100.  Once they raised the bonus to $150 cashback, we threw in the towel and pledged our loyalty. And now, as if to rub it in, they are dangling a $200 carrot for a limited time.

So if youve been following us all this time and disavowing the Freedom card for its flaws, now might be the appropriate time to reconsider.

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