Previously, I mentioned that Chase is changing the rewards program on its Chase Freedom Card. This is true, according to the Wall Street Journal, but it appears they are doing it slowly through the year.

Here is a description of the new rewards program:

“Under the points-based program, dubbed Ultimate Rewards, customers will earn points for every dollar spent on certain Chase credit cards, with no earnings caps or expiration dates. Points can be redeemed for travel, cash, statement credits or gift cards, generally on a one-for-one basis with each point worth one penny. Users can also redeem points for merchandise, although the redemption rate is slightly less than one percent.”

And what they are going to do:

“For Chase, the move is also a way to replace older versions of its Freedom card, some of which had offered richer cash-back rewards and bonus opportunities. Throughout the year, all Chase Freedom cardholders will be moved to the rewards program, where they will earn 1% cash back (or one point) for every dollar spent and 3% cash back (or three points) for every dollar spent in categories that change each quarter. Chase had already moved to those terms for new customers last November.”

In my last entry about this, I had not received a letter from Chase in regards to the change. For me, this means that Chase has not gotten around to changing my reward program. Hopefully, I will have a couple more months before they do, so I can still get a check for $250 for $200 in rewards since I am so close. I realized now, I also don’t have to cancel my Chase Freedom card since I can just go with the reduced (standard) rewards version:

“The standard Freedom and Sapphire cards — where users earn one point for every dollar spent — don’t have annual fees. However, some Chase Freedom cardholders who want to earn a fixed 3% bonus for spending in grocery, gas and fast-food categories, will soon pay a $30 annual fee.”

Labels: credit cards

I’ve got some bad news. It looks like Chase Freedom is no longer going to be such an attractive credit card. Word on the street is rewards are going to be cut back. People have received letters in the mail (I have yet to receive it, but I haven’t really check my mail lately) mentioning the following down-grade in rewards:

1. The 3% cash back is being changed from the top 3 of 15 categories to 3 specific categories–gas, groceries, and fast food.
2. Effective June 30, 2009, the bonus redemption of a $250 check for $200 in rewards will be eliminated.
3. There will be a $30 annual fee, waived for the first year.

This is something that I heard and have not been able to confirm it, but it definitely makes a big impact on the credit cards that I use. I am also so close to the $200 reward where I could cash it in for $250 in rewards. Maybe I will load up on purchases on my Chase card this month to get to that mark before they end that reward.

I really don’t want to cancel credit cards because it could hurt my credit score, I might have cancel Chase Freedom over the next year to avoid the $30 annual fee. What I will probably do, is have them slowly lower my available credit over the next year to minimize the impact to some degree on my credit score.