Chase is making a number of changes to their Chase Freedom credit card, we speculated that the biggest change (10% bonus on points earned when you have a chase checking account open) was coming back in July. Below is a list of all the changes coming to the Chase Freedom, you can also view this on the official Chase website:
- 10% annual bonus on all points earned for those with a Chase checking account is being eliminated. You’ll continue to earn this until the end of December 2015 and your last bonus will be paid out in early 2016.
- When booking airfare/hotels through Chase.com/UltimateRewards you will no longer earn an additional point per dollar spent. This will be effective 12/31/2015.
- When redeeming for cash back, you will no longer have the option to receive a paper check. You’ll now only be able to choose between statement credit or direct deposit. This will be effective 11/15/2014.
- When booking air fare, it’s will no longer be possible to book using a fixed number of points. Instead all travel redemption will be based on their cash value. This will come into effect 10/25/2014.
- No longer possible to purchase Chase UR points.
- Auctions are no longer available.
- Ultimate rewards mall will now be called “Shop through Chase”
Our Verdict
It’s surprising that Chase hasn’t bothered to offer any positive changes to the Chase Freedom and instead only made negative changes.
The biggest change is the removal of the 10% bonus. If you’re maxing out the rotating 5% categories you’d be earning a total of 30,000 Chase UR points, this removal would mean you’re missing out on 3,000 Chase UR points per year. At a value of 2¢ per point that’s a loss of $60 per year.
Chase is most likely making this change due to the Durbin Amendment to the Dodd–Frank Wall Street Reform and Consumer Protection Act which limits how much large financial institutions can charge for debit card transactions. This was a large source of revenue for institutions offering checking accounts with a debit card, which is why you saw (and still see) banks offering 10-25¢ per debit card transactions.
I’ve personally never booked through the Chase UR portal, but for those who did you’re now basically loosing out on a 1-2% discount depending on how much you value Chase UR points. Your best bet is to use miles/points for your trip, if you’re unable to do this then you’ll likely be better off going through a different travel portal (make sure you check cashback sites to see if they are offering any further discount).
The rest of the changes are relatively minor (I’m not sure why you’d chose a paper check over direct deposit for example). I don’t personally keep a Chase checking account open, but that’s because I try to complete one checking account bonus per year with them which will usually earn me anywhere from $200-$600. I’d recommend that people who were keeping a checking account open for the 10% bonus do the same and follow suit. You’ll end up ahead when compared to the additional Chase UR points you’d be earning.
That said, it would’ve been nice for Chase to add at least one new benefit whilst taking away existing benefits. Hopefully this isn’t a sign of Chase tightening their belt and offering smaller rewards.
