New Chase Freedom In The Works?

Update:  Million Mile Secrets confirms that this change is coming and that the old Freedom with 5x categories will no longer be available to new applicants.  Since they have a business relationship with Chase, this information should be reliable.

Is there a new Chase Freedom in the works?  Credit Boards user C316 reported yesterday that Chase is planning to offer a new card called the Freedom Unlimited that offers 1.5% cash back on all transactions.  The new card would have no rotating 5% categories.

Freedom Unlimited

Angelina Travels is reporting information on the new Freedom Unlimited including screenshot of the new card.

  • $150 signup bonus for spending $500 in the first 3 months
  • $25 bonus for adding an authorized user and making a purchase in the first 3 months
  • 1.5% cash back on every purchase

Some people have mentioned that this would be a horrible card and that 1.5% cash back is nothing special.  I agree that 1.5% cash back is nothing special, BUT this card would most likely earn Ultimate Rewards points!  That means that if you also have a Sapphire Preferred or Ink Plus, you can transfer them to the Ultimate Rewards travel partners, and that means that you are earning well above 1.5% cash back in terms of value.  It should be noted that the current Freedom is also advertised as “cash back” instead of points, but it also earns Ultimate Rewards points.

What Happens To The Old Freedom?

So what will happen to the old Freedom?  I really hope they don’t discontinue it, because the 5x points categories are a great way to earn a lot of points from a small amount of spending.

chase_freedom_2016_bonus_categoriesIf you don’t have a Freedom already, I suggest you get one before it is potentially gone forever.  For those of you with 5 or more accounts, instead of applying for a new card you could always try to do a product change with Chase on one of your existing accounts.

The Bottom Line

It would be disappointing to see the current Chase Freedom eliminated because the 5x point categories are valuable and easy to maximize.  At the same time, a card that earns 1.5x Ultimate Rewards points is worth way more than 1.5% cash back and would be a welcome addition to any Ultimate Rewards points strategy.  What are your thoughts?

H/T: C316 from CB/AT