As the new year kicks off, it’s the perfect time to make the most of your rewards credit cards. Chase and Discover have announced their Q1 2025 bonus categories, offering an excellent opportunity to earn extra cash back or points on your everyday spending. Here’s a breakdown of each issuer and tips to maximize your rewards.
Chase Freedom and Freedom Flex
The Chase Freedom (no longer available to new card applicants) and Freedom Flex cards are known for their rewarding quarterly bonus categories, which often align with common spending areas. For Q1 2025, Chase has selected categories that make it easy to earn rewards on essentials and fitness.
Bonus Categories:
- Grocery stores (excluding Walmart, Target, and Wholesale clubs)
- Fitness clubs and gym memberships
- Norwegian Cruise Lines
- Hair, Nails, & Spa Services
Earning Rate: 5% cash back or 5X Ultimate Rewards points on up to $1,500 in combined purchases in the bonus categories.
Tips to Maximize Rewards:
- Stock up on grocery essentials early in the year to hit the spending cap.
- Prepay gym memberships or fitness classes if allowed by your gym.
- Use your card for smaller grocery chains and local markets to ensure eligibility.
Don’t forget to activate your bonus categories to start earning!
Discover It
The Discover It card offers a straightforward rewards program with rotating categories that cater to a wide range of spending habits. For Q1 2025, the selected categories cover popular expenses like dining, home improvement, and entertainment.
Bonus Categories:
- Home improvement stores
- Restaurants
- Select streaming services
Earning Rate: 5% cash back on up to $1,500 in combined purchases in the bonus categories.
Tips to Maximize Rewards:
- Plan home improvement projects early in the year to take advantage of this category.
- Use this card when dining out or ordering from your favorite restaurants.
- Pay for eligible streaming subscriptions like Netflix or Hulu to maximize rewards.
Don’t forget to activate your bonus categories to start earning!
Recommended Strategies for Q1 2025
- Stack Rewards: Use store loyalty programs, coupons, or cashback apps like Rakuten or TopCasback to stack savings on top of your card rewards.
- Set Reminders: If you have multiple cards, set calendar alerts to activate your bonus categories before the deadline.
- Track Spending: Use apps or spreadsheets to monitor your spending and ensure you’re maximizing the bonus caps.
- Plan Ahead: If you’re nearing the $1,500 spending limit on one card, switch to another rewards card to optimize your earnings.
Key Takeaways
- The Q1 2025 bonus categories are a great opportunity to boost your cash back or points earnings.
- Chase Freedom and Freedom Flex offer 5% back on grocery stores and gym memberships in Q1 2025.
- Discover It’s bonus categories include home improvement stores, restaurants, and select streaming services.
- Activate the quarterly categories in the app or online.
- Plan spending strategically is key to maximizing rewards.
- Stack rewards through loyalty programs, cashback apps, and spending trackers to get the most value.
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Phillip founded Hacking Your Finances after reaching financial independence in 2024 and leaving his corporate career to follow his passion for helping others optimize their finances. Combining his love for personal finance and travel hacking with years of professional expertise, he provides practical strategies to help readers maximize credit card rewards and achieve their financial goals.
