Should you switch from the Chase Freedom to the Freedom Flex?

Chase shocked the cashback world when it said it was getting rid of the popular Chase Freedom card. Luckily, the new Chase Freedom Flex℠ has proven to be a wonderful replacement. Should you switch from the Chase Freedom

The Freedom Flex builds on the Freedom card’s legacy by adding new bonus rewards categories and cardholder benefits. It is already one of the best cashback credit cards on the market, especially for people who want to travel and like flexible rewards.

If you already have a Freedom card, you might be thinking about asking for a product change. But hold on: Even though they are similar, the Freedom and Freedom Flex are actually two different products.

This makes you wonder if you should switch or add a new application. Should you switch from the Chase Freedom

Freedom vs. Freedom Flex: Key differences

While the old and new Chase Freedom cards share much of the same DNA, there are some key differences to keep in mind if you’re considering a switch or new application. The good news for current Freedom cardholders is that the Freedom Flex only builds on what’s already great about its predecessor.

Cash categories

The most significant change is the Freedom Flex card’s bonus cashback categories. Both the Freedom and Freedom Flex offer 5 per cent cash back in rotating bonus categories, up to $1,500 in spending per quarter after activation, then 1 per cent. However, the strength of the Freedom Flex is its additional fixed bonus categories. With the Freedom Flex, you’ll earn unlimited 5 per cent cash back on travel booked through the Chase Ultimate Rewards portal and 3 per cent back on dining and drugstore purchases. Should you switch from the Chase Freedom

Part of the Freedom Flex’s popularity can be attributed to sharing the rotating category structure that made the original Freedom card so well-liked. Plus, the Freedom Flex adds much-needed consistency via year-round categories.

The Freedom Flex card’s fixed categories should significantly boost your cash back earnings, especially if the Chase cash back calendar doesn’t line up with your spending in a given quarter. Indeed, thanks to the inclusion of a practical year-round category like dining, we estimate the Freedom Flex carries an average rewards rate of 1.68 per cent back outside of its rotating categories (versus a flat 1 per cent with the Freedom card). Should you switch from the Chase Freedom

Switch from Visa to Mastercard

The other major change from the Freedom to the Freedom Flex is the card network: The Freedom uses Visa, while the Freedom Flex uses Mastercard.

This switch from Visa to Mastercard introduces a number of new cardholder benefits. Most notable is the cell phone protection included when you pay your monthly cell phone bill with the Freedom Flex card. You’ll be covered up to $800 per claim and $1,000 per year against theft and damage for any phones listed in your bill. Should you switch from the Chase Freedom

The Freedom Flex also comes with a chance to earn one $5 Lyft credit per month and a free ShopRunner membership. Meanwhile, Chase-specific perks like purchase protection, extended warranty coverage, and a limited-time complimentary DashPass membership have carried over from Freedom to Freedom Flex.

Should you switch to the Freedom Flex or put in a new application?

Given the improvements Chase has made to the Freedom card family with the introduction of the Freedom Flex, current Freedom cardholders may be eager to make the switch. And doing so is as easy as calling Chase to request a product change. Should you switch from the Chase Freedom

As long as your account is in good standing, your request should go through with no trouble. Your rewardscredit limit, purchase APR, and card number should all carry over from Freedom to Freedom Flex, making the transition seamless.

Swapping the Freedom for the Freedom Flex is not the only way forward, however. Depending on your short- and long-term goals, a new application may be the smarter move. Should you switch from the Chase Freedom

The case for switching

Since the Freedom Flex also has the Freedom’s rotating bonus categories and adds new year-round categories, it’s all upside on the rewards front, whether you switch or apply fresh. Should you switch from the Chase Freedom

By switching from the Freedom to the Freedom Flex, you’ll enjoy added consistency in earning rewards and likely more cash back overall than if you’d stuck with the Freedom — especially if you spend heavily on dining, drugstore purchases or travel (and don’t mind booking through the Ultimate Rewards portal). Plus, you get a number of valuable new cardholder perks as part of the change from Visa to Mastercard. Should you switch from the Chase Freedom

One big benefit of a product change is that you’ll avoid the hard inquiry that comes with a new credit card application. A hard inquiry temporarily drops your credit score a few points and remains on your credit report for up to two years. Too many hard inquiries on your report could hurt your chances of getting approved for a new card in the short term.

Switching also allows you to keep a Chase 5/24 slot open. According to Chase’s informal “5/24” rule, you likely won’t be approved for a new Chase card if you’ve opened five or more credit cards with any issuer in the last 24 months. Should you switch from the Chase Freedom

Since the Freedom Flex is considered a new product, if you apply and are approved, you’ll have one less 5/24 slot available. That could be a deal-breaker if you have your eye on a premier travel card, airline rewards card or business card issued by Chase.

The case for a new application

The most obvious upside of putting in a new application instead of switching is the Freedom Flex card’s sign-up bonus. Since Chase considers the Freedom Flex an entirely new product, current Freedom cardholders are eligible for the card’s sign-up bonus, even if they’ve already earned a bonus with the Freedom card. Should you switch from the Chase Freedom

If you switch instead of applying fresh, you’ll have to miss out on the bonus – and in this case, it’s a big loss. The Freedom Flex is currently offering a $200 cash bonus if you spend $500 in the first three months, which is relatively impressive for a no-annual-fee rewards card bonus.

Putting in a new application for the Freedom Flex and keeping your Freedom account active also allows you to enjoy a higher total spend cap in Chase’s rotating cashback categories. Since categories are the same on both cards, if you apply for the Freedom Flex and keep your Freedom account open, you can max out rotating categories with both cards, earning 5 per cent back on up to $3,000 in combined spending per quarter. Should you switch from the Chase Freedom

While a $3,000 quarterly spending cap may be impractical in some bonus categories, it could seriously boost your cashback earnings in others, like online shopping (Amazon.com purchases are eligible for bonus cashback from October to December 2022, upon enrolment).

Aside from the rewards benefits, a new application could also help your credit score. Though you’ll take a temporary hit from the hard inquiry, opening a new account will increase your total available credit. Credit utilization makes up 30 per cent of your FICO credit score, and a new Freedom Flex credit line should give you even more room to keep your utilization ratio low. Should you switch from the Chase Freedom