Chase Freedom 5% Bonus Categories

Thanks to Million Mile Secrets for this nugget of information.

The Chase Freedom credit card (Visa and MasterCard version available) appears to be a very good credit card to have in your points/cash-earning credit card arsenal.  As a standard benefit, with the Freedom card you earn 1 Ultimate Reward (UR) point per dollar spent.  That point can be exchanged for cash at a rate of one cent per point.  However, every quarter, Chase discloses bonus categories where the earnings potential is 5 points per dollar spent.  The quarterly categories for 2013 were just announced:

Keep in mind that the 5x bonus is limited to $1,500 in spend in those quarterly categories (so it is "capped").  That maxes out to 7,500 UR points ($1,500 spent x 5 points) per quarter.  This further results in 30,000 UR points per year (7,500 UR points per quarter x 4).  As far as cash goes, that amounts to $300 in cash back for your spending.

While some people may like the cold hard cash, your UR points CAN be transferred to a more flexible Chase Ultimate Rewards credit card, like Chase Sapphire Preferred (among others).  Transferring to this type of card allows you to then transfer to airline and hotel loyalty programs that are partners with Ultimate Rewards (i.e. Hyatt, British Airways).  Most points pros prefer to do this since they find more value in the 30,000 in travel points that $300 cash.  With a little planning, your transfer from UR to an airline or hotel program can get you a flight or hotel stay(s) well in excess of $300 cash.  Keep in mind, if you only have the Chase Freedom you can not transfer to an airline or hotel loyalty program, cash is yours!  You must have another Chase card (like the Chase Sapphire Preferred) that allows transfers to partner program.

Being new to the points game, I do not have the Chase Freedom card yet.  But rest assured, it will be featured in one of my churns down the road.