Chase Freedom cash back credit card

For some, credit cards can be a financial nightmare. For others, credit cards are a way to earn cash back on day to day purchases. I choose to use cards for the latter. And Chase Freedom is my credit card of choice. Here’s why:

1. No annual fee.
2. 3% cashback on my top 3 spending categories (see below for further explanation).
3. 1% cashback on all other purchases.
4. Redeem cash back with as little as $50 in rewards, or if you accumulate cashback totaling $200, redeem it for $250! (a 20% bonus).

The top 3 spending categories for the month that earn 3% work like this:

Say in June you spent the most on gas, groceries, and movies. You will earn 3% cashback on all gas, grocery store & movie purchases. In July, you spend the most on drugstores, utilities, and department stores. So for the July billing cycle you will earn 3% cashback on all those purchase categories. ALL other purchases for each month will earn 1% cashback.

Other 3% bonus cashback categories include: grocery stores (that are not affiliated with or departments of superstores, warehouse clubs or discount stores), gas & convenience stores, quick service payment/fast food restaurants, telecommunications, cable/satellite TV/Internet Service Providers, video rentals, department stores, dry cleaners, drugstores, movie theatres, local and suburban commuter passenger transportation (including ferries, bridges, tolls, parking garages, taxis/limos), pet supply stores and veterinary services, utilities, beauty shops (salons and spas), or gym/recreation memberships.

Make sense? Great. Here’s the best part…

You can redeem a $50 check when you have accumulated $50 in cashback (the equivalent of approx. $1667 in purchases at 3% cashback). But if you can hold off redeeming your cashback rewards and save up to $200 in cashback (the equivalent of approx. $6670 in purchases at 3% cashback) you can cash in for a $250 check, a 20% bonus! Not too shabby…

Chase Freedom let’s you choose the cashback system I have described above, or you can choose to earn points. Points work the same as the cashback structure (3 points for purchases in the “top 3″ categories, and 1 point for all other purchases). Points can be used towards travel, gift cards, merchandise, and even cashback.

3% on top 3 categories, 1% on everything else, no annual fee. If you use it for gas purchases alone, you can enjoy a $0.13 per gallon discount on $4.50/gallon gas. Who in today’s world doesn’t want to save money on gas?  

This is why I never leave home without it.