I’ve switched to using my Schwab 2% cashback card almost exclusively. Chase will never get any of my business again.

The main text begins: “Congratulations! To thank you for being a valued customer, we’re changing your Chase Freedom account. You’ll receive new benefits … and there’s no extra cost”. What isn’t mentioned there in the introduction is that the primary existing benefit of 3% in the top 3 of 15 categories will be removed (although they do point out that it will be “replaced” a little farther down).

Next they do tell me that I’ll be getting a 5% cash back in popular rotating categories and that this will replace the current program. Other than the fact that it does smack of Discover as mentioned above, the main problem that I have is that the current 5% categories do not include anything where I would spend much, if anything. I suppose future categories might be more favorable, I don’t know. I usually did spend significant amounts in at least 2 of the previous 3% categories. So, for me, this “thank you’ from Chase results in giving up a 3% cash back for a 1% cash back. And, of course, as with Discover it will be necessary to “sign up” to get any 5% cash back and I really don’t want to take time to find the new categories as they change and then “sign up”. I imagine Chase realizes that many customers will mentally associate the 5% cash back with Chase, but then never actually sign up as the categories rotate. So, chase can benefit by promoting the 5% cash back and then not pay it all that often — if my assumption is correct.

Then the letter continues that I can avoid interest with the “Full Pay” part of “Blueprint” if I assign “everyday purchases” to “Full Pay” and pay them in full each month. I suppose that might be a nice feature to those who typically carry an interest accruing balance, but as I almost always pay the entire balance every month it’s nearly pointless for me. I try not to put major purchases on a credit card anyway to avoid the relative high interest.

Next I’m informed that there are no limits or expiration dates for 1% cash back purchases. I don’t know if that implies that there are limits and expiration dates for 5% cash back purchases — If I ever would have any. I did check the Chase website for details, but got a pop-up window stating that terms and conditions would only be revealed after I signed up for the program which I especially didn’t want to do before I collect my cash back rewards under the old program.

Next they inform me that I can redeem my rewards easily online. I thought that I could already do that? And then there is the mention that the $250 check / $200 rewards is no longer available. Okay, but remember, the given reason for all these changes was as a “thank you” for being a valued customer. Thankfully, my rewards balance will go a little over $200 on my early March bill and I have until March 31, 2010 before I “start receiving these new benefits”, so I think that I will still be able to get a $250 check under the old program.

As I navigated around the Chase website getting additional information on the benefit changes, I came across something called Chase Community Awards (or something like that) where they give money to various charities. There was one so-called “charity”, maybe two, that I thought absolutely outrageous receiving a substantial amount of money. Most were okay, but none would be a top priority charity for me. I would much rather do business with a company that gives me the best possible deal and with what I save doing business with that company then donate to charities I prefer rather than having a company decide what I donate to via their profits.

I’ll soon be closing my Chase account and use something much more straight forward, less manipulative, and with fewer hassles than what Chase now offers.

I have accumulated over $150 of rewards. Now the $250 check for $200 in rewards is no longer available. I suspect that Chase is making sure that anyone inching towards the $200 line is switched over.

But one question I have is what is the limit for taht – Is it true taht it is only 3% of $1,000 spent in those categories – In effect a bonus of $30 for the whole quarter – not alot.

I think I might go with Fidelity Visa 1.5% om first %15,000 then 2% on everything else after that .

Much more staright forward & more points.

Right now it’s dining, utilies, education and something else—Oct-Dec was stuff I didnt use so I didnt bother to sign up.

I still tihnk the chase freedom is a good card, I only got it because I signed up for a free chase checking account (which got me $125) and the banker lady enrolled me in the card—I get 10% bonus points and also 10 bonus points per transaction because I have the checking account.

TJ

The only issue I have with ceasing to use my card as much is that I think it may affect my credit (long-standing cards seem to have a positive impact on credit). Is that true?