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The cash back credit card market continues to heat up with the introduction of the Chase Freedom Unlimited® credit card. In the race to acquire new customers, banks are introducing increasingly lucrative products. Cash back credit cards can be an excellent way to put some extra money in your pocket, so long as you don’t give into temptation and spend more than you should.
With Chase Freedom Unlimited®, you earn a 1.5% cash back offer. The card has a $0 annual fee.
We like the simplicity of this product. There are no caps or opt-in requirements. If you want a good return and little hassle, this could be a good addition to your wallet.
There are opportunities to get even more from this new credit card if you can use it in combination with your existing Chase Freedom®* or Chase Sapphire Preferred® Card*. Just beware, the card does charge a foreign transaction fee of 3% of each transaction in U.S. dollars. In this review, we will explain:
- The key features
- The best ways to use the card
- How the card stacks up versus the competition
- Our Final Verdict
The information related to Chase Freedom Unlimited® has been collected by MagnifyMoney and has not been reviewed or provided by the issuer of this card prior to publication. Terms Apply.
Here are the key features of the Chase Freedom Unlimited® card:
- 0% Intro APR for 15 months on purchases and balance transfers, then a 16.74 - 25.49% Variable APR. The balance transfer fee is 3% intro balance transfer fee when you transfer a balance during the first 60 days your account is open, with a minimum of $5, then either $5 or 5% of the amount of each transfer, whichever is greater..
Best Ways to Use The Card
The best part of Chase Freedom Unlimited® is its simplicity. Some people are willing to work hard for a deal. They will carry multiple credit cards to maximize the cash back that they earn. They eagerly opt-in to bonus offers and even create spreadsheets to keep track of their rewards. If that sounds exhausting, Chase Freedom Unlimited® could be a better option for you. There are no rotating categories, no caps and no requirements on your end. You will earn 1.5% cash back offer.. And you don’t have to do anything other than carry this card in your wallet and use it for all of your purchases.
But there are some ways to get even more from this credit card with a little extra work. If you already have a Chase Sapphire Preferred® Card, you will have more redemption opportunities with the Chase Freedom Unlimited® card.
- Redeem for travel: Chase offers 25% more value when you redeem for airfare, hotels, car rentals and cruises through Chase Ultimate Rewards®. With a Chase Freedom Unlimited® credit card, it would take $16,000 of spend to earn enough points for the ticket.
- Transfer to an Airline or Hotel Partner: With Ultimate Rewards, you have great flexibility. You can transfer points to your frequent flier account with airlines (including United Airlines and Southwest Airlines) and hotels (including Marriott and Hyatt). If you do a lot of business travel already, this is a nice way to top up your account.
If you already have and use the Chase Sapphire Preferred® Card, the Chase Freedom Unlimited® could be a great addition. With Chase Sapphire Preferred® Card, you earn 2X points on travel and dining at restaurants & 1 point per dollar spent on all other purchases worldwide. You can boost all other categories to 1.5 points per $1 with Chase Freedom Unlimited®.
If you already have the original Chase Freedom® credit card, you do not have to give it up. You are allowed to keep both. You can continue to enjoy the bonus categories of Chase Freedom®.
Chase Freedom Unlimited® versus the Competition
The best part of Chase Freedom Unlimited® is its simplicity. But here are a few places where the card loses out to competition.
If you want to avoid foreign transaction fees: Chase Freedom Unlimited® charges foreign transaction fees, 3% of each transaction in U.S. dollars. If you plan on traveling abroad, you might want to consider the Capital One® Quicksilver® Cash Rewards Credit Card. With Capital One® Quicksilver® Cash Rewards Credit Card, you can also earn 1.5% Cash Back on every purchase, every day, but there are no foreign transaction fees.
on Capital One’s website
- Annual fee
- Rewards Rate
- 1.5% Cash Back on every purchase, every day
- Regular Purchase APR
- 15.74% - 25.74% (Variable)
If you spend a lot in one category: you might find a better deal with a different credit card. For example, Fort Knox Credit Union offers a credit card that lets you Unlimited 5% cash back on gas and 1% cash back on all retail purchases. PenFed offers a credit card that pays 4.25% on airfare. You can find the cards that pay the highest bonus rates here.
If you want to earn 2%: With Chase Freedom Unlimited® you earn 1.5% cash back offer.. Citi® Double Cash Card – 18 month BT offer* currently offers 1% + 1%. You Earn 2% cash back on purchases: 1% when you buy plus 1% as you pay.. If you take the redemption as a deposit into your checking account and pay the balance in full and on time every month, you would be earning 2%.
Our Final Verdict
Chase Freedom Unlimited® is simple, transparent and easy to use. You will earn 1.5% cash back offer. – it’s automatic! If you already have a Chase Sapphire Preferred® Card or the original Chase Freedom® card, adding this no annual fee card to your wallet is a no brainer.
If you want a solid credit card to earn good returns, this is a good option. Its biggest competition is Citi® Double Cash Card – 18 month BT offer, which can generate 2% cash back when used properly. However, Citi® Double Cash Card – 18 month BT offer offers no sign-on bonus. In the first year, you will likely be better off with Chase Freedom Unlimited®. Given the bonus, long-term sustainability of the product and ability to leverage Ultimate Rewards, we believe Chase Freedom Unlimited® could be a solid choice.
*The information related to the Citi® Double Cash Card – 18 month BT offer, the Chase Freedom®, and the Chase Sapphire Preferred® Card has been collected by MagnifyMoney and has not been reviewed or provided by the issuer of this card prior to publication.