Chase is one of the best credit card issuers and banks for those who want to earn points and miles for travel. They offer a plethora of excellent credit cards that can help plenty of people get traveling. However, Chase lacks in one essential bonus category: grocery stores. Their main competitor, American Express, dominates in the grocery store bonus category. They have multiple charge and credit cards that offer huge multipliers towards grocery store purchases. Because Chase does not have a similar grocery store card, I figured that imagining a new Chase credit card would be fun.
JP Morgan Chase is the one of the largest banks in the United States. It issues a plethora of cards that earn transferrable and valuable Ultimate Rewards (UR) points. JP Morgan Chase’s size and number of customers gives them another opportunity to compete with American Express. They already have plenty of successful credit cards in the Sapphire, Freedom, and Ink Business families. But none of them earn any bonus points at grocery stores unless there is a promotion.
Name & Annual Fee
The two most basic parts of any credit card are its name and its annual fee. I’m going to name this new Chase credit card the “Chase Freedom Daily” (or the “CFD” for short). This name implies that it is part of the Chase Freedom family and that it is meant to be used for “daily” errands.
Plus, the Chase Freedom Daily would have no annual fee. A lack of an annual fee places the Freedom Daily in Tier II alongside the two existing Freedom Cards.
A new Chase credit card like the Freedom Daily would have a sign-up bonus worth 15,000 Ultimate Rewards (UR) points for a minimum spend of $500. This bonus is the same as that of the other two Freedom Cards. Therefore, you could apply for all three Freedom Cards and earn 45,000 UR points for just $1,500.
Plus, a $500 minimum spend is reasonable for a no annual fee credit card. This low minimum spend makes it easy to earn for beginners and advanced travelers alike. It’s also nice for those who have limited funds or are on a budget.
The earning structure is where the Freedom Daily Card’s value will truly lie. It will earn 3x UR points at Grocery Stores and at Gas Stations. Plus, it will earn one point per dollar for non-bonus spend. This earning structure fills two holes that Chase has in their core product lineup: groceries and gas.
There are no business or personal UR point-earning credit cards that have a bonus category for Grocery Stores. This is the biggest weakness of the Chase UR “ecosystem” for many people. And it is a huge reason why so many travelers prefer American Express, Membership Rewards (MR) points, and their “ecosystem”.
Furthermore, there is only UR point-earning credit card that has a bonus category for Gas Stations. That is the Chase Ink Business Cash, which is a business credit card that earns 2x points on Gas. But not everybody is eligible for a small business credit card. Therefore, a personal Chase credit card that earns extra points on Gas will be huge.
The Chase Freedom Daily Card will have the same redemption methods as the rest of the Freedom Card family. Cash back, gift cards, and the Chase Travel Portal will be the three main redemption options for this card. Points will be worth 1 cent each (CPP) when redeemed for all three options.
However, if you also have a premium Chase Card, you will be able to transfer your points to your premium card’s account. Thereafter, you can transfer them to any of Chase’s transfer partners for travel. This indirect fourth option is available for all Chase no annual fee credit cards. And the Freedom Daily will be no exception.
The Chase Freedom family is not known for having many significant benefits. This is true for most Tier II (no annual fee) credit cards and the Freedom Daily will be no exception.
Chase will be entering a saturated market niche with the Freedom Daily Card. However, they will be helping to take market share from American Express.
American Express Everyday Cards
The American Express Everyday and Everyday Preferred Cards will be the two most direct competitors to the Chase Freedom Daily Card. All three cards have earning structures within the same bonus categories. But the Freedom Daily takes the best of both cards.
The no annual fee Amex Everyday Card earns 2x MR points at Grocery Stores and one point per dollar for non-bonus spend. This includes Gas Stations. Plus, the Everyday Card comes with a 20% points bonus if you use it at least 20 times per month.
Similarly, the Everyday Preferred Card earns 3x MR points at Grocery Stores, 2x MR points at Gas Stations, and one point per dollar for non-bonus spend. The Everyday Preferred comes with a 50% points bonus if you use it at least 30 times per month.
Like the Everyday Card, the Freedom Daily will have no annual fee. And it will have a superior earning structure to both cards. No other credit card in the industry has a points bonus that depends on how frequently you use the card. And the Freedom Daily will not either. This will make it a great card for rewards optimizers and travelers who use multiple credit cards.
Furthermore, all three cards have similar sign-up bonuses. But the Freedom Daily will only have a minimum spend of $500 for the same 15,000 points as the Everyday Preferred. Therefore, the Freedom Daily Card’s sign-up bonus is more attractive than those of either Amex Everyday Card.
Citi Rewards +
The Citi Rewards + will be another competitor for the Chase Freedom Daily. It earns 2x Thank You (TY) points for Grocery Stores and Gas. Plus, it rounds up all rewards earned to the nearest 10 points. This is amazing for smaller purchases and it can help you earn more TY points faster.
However, the Freedom Daily will earn more points within its bonus categories than the Citi Rewards +. The rounding from the Citi card helps, but the Chase Freedom Daily is a better overall earner.
Plus, both cards come with similar sign-up bonuses. You must spend $1,000 to earn 15,000 TY points within the first three months. The Freedom Daily comes with the same bonus but with just half the minimum spend. And it earns Chase UR points assuming you have a premium Chase credit card.
Imagining the possibilities of a potential new Chase credit card is a fun mental exercise for any points and miles lover. And the opportunity to compete in the grocery store market niche is a great one for Chase.
I would love to see a card like the Chase Freedom Daily become a reality. Because we are living in a pandemic, millions of Americans can use a card like this to earn cash back or UR points. Such rewards will come in handy in multiple ways given the unsafe travel environment and current recession. Furthermore, I assume that there would be a huge demand for such a card given the COVID-19 pandemic. Plus, people will want such a card given the success of the Sapphire, Freedom, and Ink credit cards.