Chase FreedomSM Visa Signature® Card anyone?

Question

* Earn $50 cash back after your first purchase

* Earn 3% cash back in the 3 Everyday categories where you spend the most each month

* Earn 1% cash back on all other purchases

* Change from earning cash to points and back again

* No Annual Fee

Would you guys recommend this credit card? I prefer cash backs. What exactly does it mean "Earn 3% cash back in the 3 Everyday categories where you spend the most each month?"

Answer 1

That type of card is good for what is called "hidden" trade lines. Chase doesn't report the credit limits and generally the utilization on the card is not factored in by FICO.

If you already have a well rounded credit file, you might not be care about it. (in fact it could be a plus)

But if you are building/rebuilding your credit file you might call the Chase CSR and request that they report the credit limit (it may take more than one call)

If you receive credit limit increases, you will have to call each time to request the increase be reported also.

Even if Chase will report the credit limit, TransUnion still may not report the limit. TU has a habit of reporting them as installment accounts instead of revolving trades. (it's just something you would have to live with)

The other CRA's will report the credit limit if you have requested it from Chase.

As for the rewards:

"There is a monthly cap on the 3% rewards of $600." (the only downside if you spend alot on the card)

The 3% in the everday categories is where you spend the most money

For example - you use it the most for gas, groceries, fast food - but you also use it to spend a little bit for clothing, etc.

You would earn the 3% rewards on the gas, groceries and fast food - you would only be earning the 1% rewards on the clothing, etc.  

So, if you have other rewards cards that may give you better rewards in one of those categories.. for example a card that gives you 5% cash back on gas.. then use your 5% card for gas and use the Freedom card on other things.