Over the past few years one of the things I’ve seen take off in the world of credit cards and credit card points is pairing. That is, pairing certain cards from the same issuer to maximize points earning potential on all of your spending. This is possible because card issuers now allow card holders to pool points and even transfer cash back into credit card points.
In this case, I’m talking specifically about the Chase Freedom card and the Chase Sapphire Reserve cards. If you combine these two cards you can actually convert Chase Freedom cash back into Chase Ultimate Rewards points. So, that $0.01 you earn from each dollar spend on the card ends up being worth 1 Ultimate Reward point. Then, if you redeem UR points for travel, those points are now worth $0.015 each; a slight improvement.
Furthermore, with the Chase Freedom card, you can actually earn up to 5% cash back on quarterly rotating bonus categories that change… every quarter. This benefit is capped to just $1,500 of qualifying quarterly spend. That means, each quarter, you can earn an additional $75 of cash back or 7,500 UR points when converted.
Activate The Chase Freedom Quarterly Bonus Category
The only catch to all of this is that with the Chase Freedom card you actually have to activate the quarterly bonus benefit each quarter. This is a simple enough task that only takes a few seconds. One way you can activate this benefit is by logging into your Chase account and selecting “activate” from the top right corner of your account page. The other, easier way, is to find a reminder email from Chase. In these reminder emails, Chase outlines the quarterly benefit, but also provides a single click activation button.
Today, I receive my second reminder email to activate the Chase Freedom Quarterly Bonus benefit. The email started off with the above image and got straight to the point. Below the image was a single click activation button that when pressed, activated the benefit.
This area of the email also explained that in Q1’20, Chase Freedom card holders could earn 5% Cash Back on up to $1,500 of qualifying bonus spend. The message also explained that in Q1’20, quarterly bonus categories included Gas Stations, Select Streaming Services, and Internet, Cable & Phone Services. These categories were outlined further with the below image and another activation button.
One thing to note, Chase Freedom card holders must activate the benefit before March 14, 2020. The good new is, if you activate before that date, any qualifying spend made prior to activation is counted. So, don’t worry if you’re late to activate, your qualifying spend will be recorded and bonus cash back awarded.
Once you click one of the activation buttons you’ll reach the above page that confirms activation.
Word Of Caution Regarding Chase Freedom Q1’20 Quarterly Bonus Categories
One thing you might notice about the Q1’20 Quarterly Bonus categories is that they are mostly recurring purchases made throughout the year. In most cases, Cable, Phone, and Streaming Services are all setup for automatic payment. So, once you add your Chase Freedom card you will be charged on that card until you make a change.
This isn’t an issue in Q1 when you are earning 5% Cash Back on those purchases, but for the other 9 months of the year, you will only be earning 1% Cash Back. So, if you decide to add your Chase Freedom card to those accounts, make sure to change your payment method in the following quarters to more rewarding cards if possible. Also, other credit cards offer cell phone protection if you use that card to pay your phone bill. Therefore, you might be missing out on that benefit if you forget to change your payment method.
Finally, if you’re able, it might just make sense to buy up to $1,500 in gas cards this quarter. Perhaps you’re going to spend $1,500 on gas this year, but not all this quarter. That is one way to maximize this benefit without changing your payment method on all of your recurring services.
Final Thoughts
As always, the Chase Freedom card is a great card to carry considering it offers up to 5% Cash Back and carries a $0/year annual fee. However, the only way you earn the 5% cash back is if you remember to activate the benefit.
Also, whenever you change an automatic payment to the Chase Freedom card to maximize the 5% Cash Back benefit, always remember to change it back following the end of the promotional period.
Finally, if you’re already carrying the Chase Sapphire Reserve and the Chase Freedom card, considering opening a Chase Freedom Unlimited card account. The Chase Freedom Unlimited card offers 1.5% Cash Back on all purchases. This is a better option than putting all of your non-bonus spend on the Chase Freedom card alone.
