Good afternoon everyone, I hope your week is going well. As you know, I like to make Wild & Crazy Airline, Hotel & Credit Card Predictions. Today’s prediction missed the official 2023 deadline, but it just came to me, so I thought it was worth sharing. As I reminder, I am
100% correct 1% correct on my predictions, so take this with a grain of salt.
As a reminder, the Chase Freedom Unlimited Credit Card currently earns 1.5% cash back everywhere (1.5X Chase Ultimate Rewards per dollar). That used to be great until the likes of the Citi Double Cash Credit Card (2% cash back everyone / 2x Citi ThankYou Points), American Express Blue Business Plus Credit Card (2X Membership Rewards Points everywhere), Capital One Venture X Credit Card (2X Capital One Miles everywhere), and the handful of other 2% cash back cards came onto the scene.
You can still transfer your Chase Ultimate Rewards Points from your Chase Freedom Unlimited to your Chase Sapphire Preferred or Chase Sapphire Reserve, but the Pay Yourself Back categories recently dropped (see Doctor of Credit’s post outlining the changes). My hypothesis is that Chase has planned to increase the Chase Freedom Unlimited from a 1.5X everywhere card to a 2X everywhere card (to keep up with the competing 2% / 2X credit cards), but they knew cardmembers would transfer those Chase Ultimate Rewards Points to Chase Sapphire Preferred or Chase Sapphire Reserve and get outsized value with the Pay Yourself Back categories. Therefore, Chase had to decrease the Pay Yourself Back categories to offset the increased earning on the Chase Freedom Unlimited.
I might be on to something or completely off base, but I thought my prediction was worth sharing – only time will tell if I am right or wrong. If you agree or disagree with my prediction, please leave a comment below. Have a great day everyone!