Be Mindful Of Your Freedom 5% Category Quarterly Spend Balance

 

 

I made a mistake (not a big one) but would like to share it in hopes someone reads this and does not make the same mistake as me.

I have been using my Chase Freedom Card for my groceries the entire first quarter of 2015, as grocery stores were a 1st quarter bonus category.  Keep in mind, you only earn the 5% cash back or 5 Chase Ultimate Rewards points on up to $1,500 in purchases or a total of $75 cash back or 7,500 Chase Ultimate Rewards points.  (Remember, your cash back earnings can be redeemed for Chase Ultimate Rewards points if you also have the Chase Ink Business Preferred card, Chase Sapphire Preferred card, or Chase Sapphire Reserve card.)

I thought I was being really careful about checking my statements as I did not want to go over that $1,500 grocery store spend as then I would only be earning one Ultimate Rewards point per $ spent over the $1,500.  My plan, once I went over $1,500, was to use my new Amex Everyday Preferred card where I get 3X American Express Membership Rewards points per $ spent at supermarkets.  (Up t0 $6,000).

Well I was not careful enough.  The Chase Freedom statement breaks up the spending as follows…

+ 1% (1 Pt)/$1 earned on all purchases

+ Bonus from 1Q 5% cat: Select Grocery Strs

I kept looking at my balance on the 5% line making sure it was less than $7,500 (1,500 x 5).  However, the initial $1 and point is on the first line.  The 5% line represents the remaining 4%—this amount needs to stay below $6,000 or 1,500 X 4.  I went over the $6,000 and I earned only 1x point on these purchases.