It had to come about sometime. I have heard directly from an affiliate of Chase Bank that they are yielding to the recent economic woes and significantly downgrading the Chase Freedom Visa card. Goodbye 3% cash back, hello same ol' 1% rewards that all of the other cash-back cards offer.

If you've been visiting the site for any length of time you'll see that I have been a strong proponent of the Chase Freedom card. It's combination of no annual fee and 3% cash back (3.75% at the $200 rewards mark) in your top three spending categories (five for Chase checking account holders) makes it the best all-around everyday use card for most people. It's what I have been using for most of my purchases over the past couple of years.

The Chase Freedom card has been enormously popular with consumers. Now Chase has become the latest credit issuer bending to the current economic landscape (following on the heels of Discover, which just removed their balance transfer fee caps last week).

New Chase Freedom Terms

The "new, re-introduced" Chase Freedom card offers you 3% cash back on only gas, groceries, and fast food purchases…and only for the first six months. Any other purchases, and purchases after six months, will be eligible for only 1% cash back rewards.There is one other big change though: it looks as if Chase will be switching to a Discover card-type system of quarterly bonus categories. So now instead of getting 3% cash back all of the time, you have to keep track of what offers are available at what times and use your card accordingly. Bah.

It looks as if they are going to be doing away with the $50 signup bonus as well. For all of the new details, take a look at the new Chase Freedom Card application.

There is still no time table as to when current card holders will be downgraded to this new plan, but I'm sure it will happen eventually—it always does. I would bet within the next year or so.

If you want to get in on what may very possibly be the last chance to sign up for the card, go here (link expired—knew it wouldn't take long!).

Alternatives

If you are already a card holder, I would continue to use the Chase Freedom card for as long as the old rewards structure stay in place. If you choose to be preemptive and look for a card to replace the Chase Freedom card, I have a couple of suggestions.
 

• American Express Costco TrueEarnings Card

5% cash back on gasoline purchases (3% with the personal card), 3% back at restaurants, 2% back on travel. Remember that you don't need to be a business to sign up for a business credit card!

• Discover Miles Card
  

No annual fee, no restrictions on use, redeemable for any airline or travel purchase, 12,000 bonus miles the first year, 1-2 miles for every purchase you make, 0% APR on Balance Transfers and purchases for 12 and 6 months, respectively.