Chase Freedom Unlimited Review 2024
Chase Freedom Unlimited® Basics
The Chase Freedom Unlimited® is a cash-back credit card that aims to provide substantial rewards across various spending categories. Here’s a snapshot of what the card offers:
Annual Fee: $0
Rewards Rate: 1.5%-5% Cash back
Intro Offer: Up to $300
Intro APR: 0% intro APR on purchases and balance transfers for 15 months
Regular APR: 20.49%-29.24% Variable APR
Recommended Credit Score: 690-850 (Good – Excellent)
Rewards Structure
The card offers a range of rewards categories, making it versatile for different spending habits:
- 5% cash back on travel booked through Chase.
- 3% cash back at restaurants, including takeout and eligible delivery services.
- 3% cash back on drugstore purchases.
- 1.5% cash back on all other purchases.
These categories cover a wide array of everyday expenses, ensuring you earn significant rewards without having to think much about it.
Pros and Cons
Pros:
- No annual fee: This makes it easy to keep the card without worrying about yearly costs.
- Intro APR period: 0% intro APR on purchases and balance transfers for 15 months.
- High rewards rate: Up to 5% cash back in certain categories.
- No minimum redemption amount: Redeem your rewards at any time.
Cons:
- Requires good/excellent credit: Applicants need a credit score of at least 690.
- Complex rewards structure: Different rates for different categories can be hard to remember.
Chase Freedom Unlimited®: Benefits and Perks
Sign-Up Bonus
Unlike many cards that offer a lump-sum bonus after meeting a spending requirement, the Chase Freedom Unlimited® offers:
- An additional 1.5% cash back on everything you buy (on up to $20,000 spent in the first year), potentially worth up to $300 cash back.
Flexible Redemption Options
Your spending earns Chase Ultimate Rewards® points, which can be redeemed for:
- Cash back: Points are worth a penny apiece.
- Gift cards: Redeem points for various gift cards.
- Travel: Book travel through Chase at 1 cent per point.
- Amazon purchases: Use points to shop on Amazon (0.8 cents per point).
Enhanced Value with Multiple Chase Cards
If you have other Chase cards that earn Ultimate Rewards® points, the Chase Freedom Unlimited® becomes even more valuable:
- Combine points: Maximize your rewards by using other Chase cards for specific spending categories.
- Transfer points: Increase point value by transferring to cards with elevated redemption values, such as the Chase Sapphire Preferred® Card or Chase Sapphire Reserve®.
Comparison with Chase Freedom Flex®
When comparing the Chase Freedom Unlimited® with the Chase Freedom Flex®, consider these points:
- Freedom Flex®: Offers 5% cash back in rotating categories but requires activation and is capped at $1,500 per quarter.
- Freedom Unlimited®: Provides 1.5% cash back on all other purchases without any caps, making it simpler and more flexible.
Tip: For those who travel frequently and dine out often, the Chase Freedom Unlimited® offers high rewards in these categories, making it a perfect companion for everyday use.
Drawbacks and Considerations
Complexity
The mix of reward rates can be overwhelming. For those who prefer simplicity, a flat-rate card like the Wells Fargo Active Cash® Card, which offers 2% cash back on everything, might be more appealing.
Alternative Cards with Higher Rates
Depending on your spending habits, other cards might offer better rates in specific categories:
- Blue Cash Preferred® Card from American Express: Offers 6% cash back at U.S. supermarkets (up to $6,000 per year) and on select U.S. streaming services, 3% at U.S. gas stations, and on transit.
- Bank of America® Customized Cash Rewards credit card: Provides 3% in a category of your choice and 2% at grocery stores and wholesale clubs (up to $2,500 in combined spending per quarter).
Table: Comparison of Rewards Rates
| Card | Rewards Rate | Annual Fee | Intro Offer |
|---|---|---|---|
| Chase Freedom Unlimited® | 1.5%-5% Cash back | $0 | Up to $300 |
| Wells Fargo Active Cash® Card | 2% Cash back | $0 | $200 |
| Blue Cash Preferred® Card | 6% on supermarkets, 3% on gas & transit | $0 intro, then $95 | Up to $350 |
| Bank of America® Customized Cash | 3% in chosen category, 2% on groceries | $0 | Up to $200 |
FAQ
What credit score do I need for the Chase Freedom Unlimited®?
You need a credit score of at least 690, which falls into the good to excellent range.
Is there an annual fee for the Chase Freedom Unlimited®?
No, there is no annual fee for this card.
Can I use the Chase Freedom Unlimited® for travel?
Yes, you can earn 5% cash back on travel booked through Chase.
How do I redeem my rewards?
You can redeem your Chase Ultimate Rewards® points for cash back, gift cards, travel, and Amazon purchases.
What is the introductory APR offer?
The card offers a 0% intro APR on purchases and balance transfers for 15 months, followed by a variable APR of 20.49%-29.24%.
How does the Chase Freedom Unlimited® compare to other cash-back cards?
While it offers competitive rewards, the best choice depends on your spending habits. For example, if you spend a lot on groceries, the Blue Cash Preferred® Card from American Express might offer better rewards.
The Bottom Line
The Chase Freedom Unlimited® is a versatile cash-back card that caters to various spending habits. With no annual fee, a substantial sign-up bonus, and flexible redemption options, it stands out among cash-back cards. However, its complex rewards structure might not suit everyone. Compare it with other cards to see if it aligns with your spending patterns and financial goals.
Tip:
Make the Chase Freedom Unlimited® your top-of-wallet card to maximize rewards without the hassle of tracking multiple categories.
