This morning, Chase revealed that the Chase Freedom 2nd Quarter 2020 categories are Grocery Stores as well as Gym Memberships & Fitness Clubs.
The Chase Freedom is an amazing card for earning Ultimate Rewards (UR) points quickly on select categories. It’s best used in conjunction with the Chase Sapphire Preferred, Chase Sapphire Reserve, or the Chase Ink Business Preferred. This is because you can transfer points earned with the Freedom to any of the above cards for access to transfer partners.
Overview
I am not surprised to see Grocery Stores as the second quarter’s primary category. It was also the second quarter’s primary category for the last several years. People might be spending more at the Grocery Store this quarter to stock up on goods in case of the Coronavirus.
However, Gym Memberships & Fitness Clubs came out of left field for me. I am impressed that Chase is thinking outside the box with their secondary categories in 2020. For the first quarter of 2020, Chase selected Streaming Services, as well as Internet, Cable, and Phone Services as its secondary categories. I think that Chase is trying to get millennials to apply for the Freedom card. Plus, I think that Chase will continue to offer more creative secondary categories into the second half of 2020.
Moreover, the Chase Freedom allows you to earn 5x points on up to $1,500 spend within the bonus categories. That means you can earn 7,500 UR points per quarter if you maximize the categories. All categories share the maximum spend limit.
Strategy
Use the Freedom for the first $1,500 of category expenses. Thereafter, use a Grocery Store bonus category card if you spend more than $1,500 in groceries next quarter. The reason is because you will earn only one point for every dollar spent after maximizing the categories.
Nonetheless, Chase is now competing with American Express’ bevy of grocery store cards with the Freedom. The Gold Card, Everyday Preferred Card, and Blue Cash Preferred Card are Chase’s main competitors this quarter.
Plus, there is only one other credit card that offers a bonus on Gym Membership & Health Clubs: the Chase World of Hyatt Card. The strategy here is to use the Freedom for all Gym Membership and Health Club expenses (if you have any) this quarter. Switch to either the World of Hyatt Card or a flat rate card in the even you go over the $1,500 spend maximum.
Final Draw
The second quarter of 2020 should be bountiful for most Chase Freedom cardholders, especially those who have large grocery budgets. However, not everyone has Gym Membership & Health Club expenses. Therefore, the secondary categories are not as universally useful as Grocery Stores.
The current categories for the Chase Freedom are Gas Stations, Streaming Services, as well as Internet, Cable, and Phone Services. Registration to earn 5x points closes on Saturday, March 14, 2020 for those who have not registered. This is your last chance to register. All you have to do is click on this link to the registration page and enter your name, ZIP code, and the last four digits of your card’s number.
Registration for the second quarter’s categories opens on Sunday, March 15, 2020. Use the same registration page link and follow the above steps to apply.
Wonder if this is in any way a reaction to the (grandfathered) Citi Dividend, that for 3 of the last 4 years has offered Fitness Clubs as a 5% cashback category in Q2. I for one, had been cycling an annual gym membership on that, but was disappointed to see that go away as a benefit this year.
Glad to see Chase pick it up right on time, also 5X UR points translates to 7.5% back combined with the Chase Sapphire Reserve, so its an even better deal than 5% from Citi Dividend.
Hi Debanjan Dey,
Thanks for reading PYCR! This is a a great question. While I never thought about it, you might be right. The Citi Dividend has been discontinued for a while now and Chase might be trying to persuade current and former Dividend cardholders to apply for the Freedom. A very interesting move if it were true!
Best Regards,
Anthony
Also, to fully use the category, one can buy store giftcards like BB&B, Amazon and Home Depot at grocery stores like Whole Foods. Usually during each month of the quarter, I will buy my favorite grocery store’s GC and shop w/ those once the quarter is over.
Hi JPerkins,
Thanks for reading PYCR! Using the Freedom for manufactured spending next quarter is a great idea for earning extra UR points. Let’s just hope that Chase doesn’t crack down on cardholders about MS like Amex has been lately.
Best Regards,
Anthony
I want to use the grocery store GC strategy as I will not max out at $1500 in 3 months. But how do I know those GCs will ring up as a grocery item and not something else that is not considered a ‘grocery’ item?
Hi FlyBoy,
Thanks for reading PYCR! This is a great question. Receiving points depends on the merchant’s category code, not what you buy at the merchant with a Visa card or MasterCard. Fortunately, the Chase Freedom is a Visa card. That means Chase won’t have access to Level 3 data, which shows what you are buying with your card. You should be good with the Freedom!
Amex is different because they are both a card network and a card issuer. They do have access to Level 3 data, which is why they can make and enforce rules for consumer spending. Rules like that is why gift cards do not count towards earning points with an Amex card.
I hope this helps,
Anthony
2019=2020 correct. Sorry, I don’t mean to be a grammar cop.
The 2nd quarter doesn’t start until April 1st so by then it will be after all the stock up for the coronavirus hype. Grocery stores are a good solid choice either way. Funny they managed to avoid Warehouse Clubs for Q12020 🙂
Hi DaninMCI,
Thanks for reading PYCR and pointing out that typo! I appreciate you being a grammar cop because it makes the post better.
Warehouse Clubs was one of the categories for Q4 2019. That’s why Chase didn’t repeat it for the current quarter. However, Costco Gas counts towards the Gas Stations category. That’s where I go for my gas.
Best Regards,
Anthony