Chase introduces Freedom Flex and revamps Freedom Unlimited

• Today, Chase introduces a new product Freedom Flex World Elite MasterCard (WEMC), which replaces the popular Freedom Visa while keeping the 5% quarterly rotating categories and zero annual fee.  Freedom Flex WEMC offers a few new bonus categories: 5% cashback on travel booked through Chase Ultimate Rewards (UR), and 3% cashback on dining & drugstores.  The signup bonus remains the same: $200 with $500 spent within 3 months of new account opening + 5% cashback on groceries up to $12,000 spent for the first year.  Freedom Visa will be discontinued for new applications, and the existing cardmembers will have an option to product change to the new Freedom Flex WEMC.
• A few words about the 5% cashback on travel booked through UR: it makes a lot of sense to book airfare (other than a few exceptions such as Southwest) to take advantage of the bonus, as the rates are the same as if you book directly with airlines and if you remember to add your frequent flyer number you will still earn miles and be recognized for your elite status; however, you may want to think twice before booking hotels, because several hotel programs won't allow points accumulation or recognize your elite status if you book through a third party; you may also need to be careful about car rentals, as you might not be able to apply certain coupons or promotions.
• Chase also revamps Freedom Unlimited Visa, adding 5% cashback on travel booked through Chase UR and 3% on dining & drugstores, while keeping 1.5% cashback everywhere else and zero annual fee.  The signup bonus also remains the same: $200 with $500 spent within 3 months of new account opening + 5% cashback on groceries up to $12,000 spent for the first year.  The existing cardmembers don't need to do anything to receive the new benefits.
• Even though both Freedom Flex and Freedom Unlimited are advertised as cashback cards, they actually earn UR points and have the "1,000 points = $10 cash" redemption option (starting with 2,000 points minimum per redemption).  Both offer impressive rewards, especially for the bonus categories.  However, if you have a premium UR card such as Sapphire Reserve, Sapphire Preferred, or Ink Preferred, you can move the UR points earned from either Freedom card to the premium UR account and take advantage of two premium redemption features: (1) transfer UR points to miles/points of frequent traveler programs (such as United, Singapore, British, Flying Blue, Southwest, JetBlue, Hyatt) at 1:1 ratio, or (2) fixed-value travel redemption when booking through UR at 1.25 cents/point for Sapphire Preferred / Ink Preferred or 1.5 cents/point for Sapphire Reserve.  This increases the rewards value of either Freedom card by 50%, based on our current valuation of UR points. 
• Freedom Unlimited is now rated as #9 Best Credit Card for Rewards, which is only based on 1 cent per point value because our ranking method is based on single-card scenarios.  If we use 1.5 cents value assuming pairing with a premium UR card, Freedom Unlimited will easily take the top spot from the current champion Citi Premier, and Freedom Flex will be rated #2.
• Freedom Unlimited and Sapphire Reserve make a great combo, allowing you to pool UR points in Sapphire's account for fixed value rewards or points transfer with elevated value.  Obviously, you want to use Freedom Unlimited for most purchases, while using Sapphire Reserve for foreign transactions.  As for travel, it makes sense to put hotels & car rentals on Sapphire Reserve as previously explained, and you need to decide on which to use for airfare - even though Freedom Unlimited gives you 2 more points, Sapphire Reserve's travel protection is second to none, offering Travel Delay, Baggage Delay, and other coverages with higher insurance amounts.  In addition, if you want to throw in Chase Freedom Flex that earns 5x points on quarterly rotating categories, your return will be even higher.  Chase is smart to make you keep all three cards if you want to maximize UR point earning.