Chase Freedom Unlimited Review: A Potential One-Card Solution
Start with a lucrative bonus, add 3% back on restaurants, 1.5% back outside of bonus categories and flexible redemption options, and you have a winner.
Our Take
5.0
The bottom line: The card's rewards structure isn't the easiest to remember. But its useful bonus categories, flexible rewards and outstanding welcome offer make it a top contender among cash-back cards.
Full Review
on Chase's website
on Chase's website
Annual Fee
$0
Regular APR
14.99% - 23.74% Variable APR
Intro APR
0% intro APR on Purchases for 15 months
Recommended Credit Score
Quick Facts
Pros & Cons
Pros
High rewards rate and no minimum redemption
No annual fee
Intro APR period on Purchases
Cons
Has foreign transaction fee
Requires good/excellent credit
Alternate Pick: Bonus cash back
Discover it® Cash Back
5% cash back in rotating categories
This card gives you 5% cash back in categories that you activate every three months, on up to $1,500 in spending per quarter, and 1% on everything else.
Compare to Other Cards
Annual Fee$0 | Annual Fee$0 | Annual Fee$0 |
Regular APR14.99% - 23.74% Variable APR | Regular APR13.99% - 23.99% Variable APR | |
Intro APR0% intro APR on Purchases for 15 months | Intro APR0% intro APR on Balance Transfers for 18 months | Intro APR0% intro APR for 14 months on purchases and balance transfers |
Recommended Credit Score |
Recommended Credit Score |
Recommended Credit Score |
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Full Review
The Chase Freedom Unlimited® offers a compelling combination of valuable rewards, flexible redemption options, a lengthy 0% introductory APR period and a sign-up bonus that’s worth far more than most cash-back cards offer — all for an annual fee of $0.
The card earns 3% cash back on restaurants and drugstore purchases, 5% back on travel booked through Chase and 1.5% back on other purchases, and put together you have a card that can really pile up the cash back. And if you carry other credit cards that also earn Chase Ultimate Rewards® points, it packs even more value.
But all those different rewards rates make the card more complicated than competitors that offer a simpler 1.5% back on everything. One remedy: Make the Chase Freedom Unlimited® a top-of-wallet card for every purchase, and you’ll be sure to score those bonus rewards without having to think much about it.
It’s why this card makes a compelling case to be a one-card solution among cash-back credit cards.
Chase Freedom Unlimited®: Basics
Card type: Cash back.
Annual fee: $0.
Sign-up bonus: Earn a $200 Bonus after you spend $500 on purchases in your first 3 months from account opening.
Rewards:
5% back on travel purchased through Chase Ultimate Rewards®.
3% back at restaurants, including takeout and eligible delivery services.
3% back on drugstore purchases.
Through March 31, 2022, 5% back on qualifying Lyft services purchased through the Lyft app.
1.5% cash back on everything else.
Interest rate: 0% intro APR on Purchases for 15 months, and then the ongoing APR of 14.99% - 23.74% Variable APR.
Foreign transaction fee: 3%.
Chase ultimate rewards® points
Although the Chase Freedom Unlimited® is marketed as a cash-back card, your spending actually earns Chase Ultimate Rewards® points. Points are worth a penny apiece when redeemed for cash back, thus you get 1.5% cash back or more depending on the category of your purchase. Points may also be redeemed for:
Gift cards at 1 cent per point.
Travel booked through Chase at 1 cent per point.
Amazon purchases at 0.8 cent per point.
The Chase Freedom Unlimited® is an excellent card on its own, but it's even better as a companion to other cards that earn Chase Ultimate Rewards® points. More on that below.
Chase Freedom Unlimited® vs. Chase Freedom Flex
If you're looking at the Chase Freedom Unlimited®, it's logical to wonder how it compares with the similarly named Chase Freedom Flex℠.
Both Freedom-branded cards have an annual fee of $0, and both offer lucrative ways to earn cash back.
The choice mostly comes down to rewards: 5% quarterly rotating categories on the Chase Freedom Flex℠ or the 1.5% “everything else” (instead of 1% everything else) of the Chase Freedom Unlimited®.
A quick evaluation:
Chase Freedom Flex℠: The 5% cash back is enticing but complicated. Bonus cash back is also capped at $1,500 per quarter in spending before reverting to 1% back. Category activation is required; all other purchases earn 1% cash back.
Chase Freedom Unlimited®: The 1.5% back on everything else is less exciting but simpler and way more flexible.
Which is more valuable will depend on how well the rotating bonus categories of the Chase Freedom Flex℠ match your spending. It also depends on how much you spend overall. Big spenders might get more value from 1.5% on everything else because it’s unlimited.
Nerd tip: The Chase Freedom Unlimited® runs on the Visa payment network, while the Chase Freedom Flex℠ is a Mastercard. In terms of acceptance, it doesn't matter much if you carry a Visa or a Mastercard. But Visa and Mastercard do offer some differing side perks.
The table in the dropdown menu below highlights the differences in rewards between the two cards and the older Chase Freedom®, which is no longer accepting applications and has been effectively replaced by the Chase Freedom Flex.
For more information on which of these Freedom credit cards is right for you, see our full comparison story.
Why you might want the Chase Freedom Unlimited®
As a cash-back card, the Chase Freedom Unlimited® delivers a great treat for new cardholders followed by high ongoing value at a low cost. Its best features include:
Big Sign-up bonus
The current bonus: Earn a $200 Bonus after you spend $500 on purchases in your first 3 months from account opening.
This cash bonus is high for a card of this type and it's easy to earn.
Useful bonus categories
The bonus rewards categories are useful and lucrative:
3% back at restaurants, including takeout and eligible delivery services.
3% back on drugstore purchases.
5% back on travel purchased through Chase Ultimate Rewards®.
Through March 31, 2022, 5% back on qualifying Lyft services purchased through the Lyft app.
Restaurants and drugstores are especially useful rewards categories for many households. Spend $3,000 a year combined in those categories, and you’ll earn $90 annually.
And if you book travel through Chase, 5% can add up quickly on pricey travel itineraries. Vacation travel costing $6,000 gets you back $300, for example.
1.5% on 'everything else'
Cash-back credit cards with bonus categories, like 3% back on restaurants, typically offer 1% cash back on “everything else.” The Chase Freedom Unlimited® offers 1.5% back on everything else.
While 0.5% more doesn’t seem like much, it adds up for big spenders because it has no limit. And many big-ticket expenses seldom fall neatly into typical bonus categories — think medical bills, car tires and furnace repair.
For those who spend a lot, say $5,000 per month on “everything else,” the extra 0.5% rate on the Chase Freedom Unlimited® means an extra $300 a year in cash back, compared with its typical competitors.
point transfers to maximize value
Because Chase allows you to transfer its points among cards that earn them, the Chase Freedom Unlimited® can be a cornerstone of a strategy to get maximum value out of every dollar you spend. If you have multiple Chase cards, you can:
Earn more points by splitting your spending between this card and the Chase Freedom Flex. By using the Chase Freedom Flex for purchases in the 5% bonus categories and the Chase Freedom Unlimited® on all other spending, you'd boost your overall rewards earnings significantly.
Get more value per point by transferring rewards to a card with elevated redemption values. Points earned with this card are usually worth a penny apiece. But several Chase cards give you more value per point when you use them to book travel through Chase's online portal, operated by Expedia:
With the Chase Sapphire Preferred® Card and the Ink Business Preferred® Credit Card, each point is worth 1.25 cents when redeemed for travel through Chase.
With the Chase Sapphire Reserve®, points are worth 1.5 cents apiece when redeemed for travel through Chase.
These three cards also allow you to transfer points at a 1:1 ratio to about a dozen airline and hotel loyalty programs, including United Airlines, Southwest Airlines, JetBlue, Marriott and Hyatt. Depending on how you use transferred points, you could reap even more value.
» MORE: What is the 'Chase trifecta'?
Drawbacks of the Chase Freedom Unlimited®
It’s complicated
The 1.5% flat rate is easy enough to understand, but the mix of reward rates in other spending categories is head-spinning — especially for cash-back lovers, who tend to value simplicity.
If you don’t want to carry around a rewards cheat sheet to optimally use a credit card and you’re just interested in cash-back rewards — not necessarily Chase Ultimate Rewards® — the Citi® Double Cash Card – 18 month BT offer is one of the best flat-rate cards on the market. It offers 2% cash back — 1% back on every dollar spent, and 1% back on every dollar paid off — and not just for a limited time.
It’s the choice for satisficers: people who are happy to settle for a good-enough option without feeling regret.
Different bonus categories or better rates
Cards with rewards bonus categories are most valuable when you spend a significant amount in those categories.
Alternative options include:
The Blue Cash Preferred® Card from American Express pays an industry-leading 6% cash back at U.S. supermarkets on up to $6,000 a year in spending (then 1%), plus 6% on select U.S. streaming subscriptions, 3% at U.S. gas stations, 3% on transit and 1% on all other spending. Terms apply (see rates and fees). It comes at a cost, though: The annual fee is $0 intro for the first year, then $95. Terms apply. This might be an ideal card to get after the first year for high grocery spenders.
The Bank of America® Cash Rewards credit card pays 3% in a category of your choice (gas, online shopping, dining, travel, drugstores or home improvement/furnishings) and 2% at grocery stores and wholesale clubs, on up to $2,500 in combined choice-category/grocery-store/wholesale-club spending per quarter. All other spending earns 1% cash back.
You can find out more about how this cash-back credit card compares versus the competition by visiting our list of best credit cards to apply for.
Chase Freedom Unlimited®: Is it worth getting?
The Chase Freedom Unlimited® is a great deal for consumers — especially for those who already have the Chase Sapphire Preferred® Card or Chase Sapphire Reserve®.
It comes with a sky-high sign-up offer, useful bonus rewards categories and plenty of options for cashing in rewards. It’s not as simple as a flat-rate cash-back card, but its versatility and value make it a strong choice.
To view rates and fees of the Blue Cash Preferred® Card from American Express, see this page.
on Chase's website
Frequently asked questions
New cardholders get a great introductory rewards rate for groceries — 5% cash back for the first year on up to $12,000 in spending. Add to that 3% cash back on restaurant and drugstore purchases, 5% back on travel booked through Chase and 1.5% back on other purchases. Through March 2022, cardmembers can also earn 5% cash back on all Lyft rides.
You’ll need good to excellent credit to qualify for the Chase Freedom Unlimited®. Generally speaking, this is defined as a credit score of 690 or better. But a credit score alone isn’t enough to qualify for any credit card. Issuers take into account your income, existing debts and other information.
It depends on your spending habits. The cards have identical sign-up bonuses, 0% APR periods and $0 annual fees. The main difference is in the rewards. The travel, restaurant and drugstore rewards are the same on both cards. But the Chase Freedom Unlimited® offers a solid 1.5% back on "everything else," while the Chase Freedom Flex℠ offers 5% cash back in rotating quarterly categories and 1% on other spending.
The annual fee on the Chase Freedom Unlimited® is $0.
The Chase Freedom Unlimited® is a Visa.
Yes. The bonus is: Earn $750 bonus cash back after you spend $7,500 on purchases in the first 3 months from account opening.
Yes. The cards have some identical rewards, but you can use them together to maximize your cash back.