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Chase Freedom Unlimited: A great card for beginners and pros alike

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Jennifer Yellin is a contributing writer to The Points Guy where she focuses on family travel. She is also the founder of Deals We Like where she helps her readers travel on a deal.
March 22, 2022
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10 min read
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Editor’s note: This post has been updated with new information.

Chase Freedom Unlimited overview

The no-annual-fee Chase Freedom Unlimited is a perfect card for both beginner and advanced award travelers. While most cards offer 1% back on purchases outside of bonus categories, you’ll earn 1.5% back on non-bonus spending with the Freedom Unlimited. If you pair this with a card that earns premium Chase Ultimate Rewards points, you can convert your rewards into fully transferable points, doubling their value. Card rating*: ⭐⭐⭐⭐

*Card rating is based on the opinion of TPG’s editors and is not influenced by the card issuer.

At first glance, the Chase Freedom Unlimited seems like a tame cash-back card with a modest sign-up bonus — but there’s a lot more to it than meets the eye.

In fact, the Freedom Unlimited is my first recommendation to people just starting to dip their toes into the world of travel rewards. When I was in college, I found that this simple card with no annual fee was a much easier sell to my friends looking to build credit.

So, let’s take a look at what makes this card so deceptively great.

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Who is this card for?

If you’re new to points and miles, the Freedom Unlimited can be an amazing card. Approval is relatively easy, and the card helps you build a relationship with Chase so you can eventually get some of the issuer’s more valuable cards down the road, such as the Chase Sapphire Preferred Card or Chase Sapphire Reserve.

(Photo by The Points Guy)

The Freedom Unlimited has no annual fee, so it’s a card you can keep open for many years without paying a penny for it — and the rewards you earn never expire as long as you keep the card open. The card also offers enticing benefits such as 120-day purchase protection and extended warranty protection that extends eligible manufacturer’s warranties by an additional year.

Keep in mind that the Freedom Unlimited is subject to Chase’s 5/24 rule, which means the bank will likely reject applicants who’ve opened five or more cards in the last 24 months. But if you have any slots left with Chase, this card is great for everyday spending, helping you mop up extra points on purchases that don’t fit into a specific bonus category.

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Related: Best Chase credit cards of 2022

Sign-up bonus

The Chase Freedom Unlimited’s current sign-up bonus allows you to earn an additional 1.5% on all purchases up to $20,000 spent in the first year. If you're able to maximize this first-year bonus opportunity, that's an additional $300 in cash-back rewards.

Of course, this offer isn’t nearly as good as what you’ll find with the Chase Sapphire Preferred Card or Chase Sapphire Reserve card, but pairing this no-annual-fee card with one of those more premium cards will only enhance your bonus potential.

This is because the cash back earned with the Freedom Unlimited can be converted into Chase Ultimate Rewards points — but only if you already have another card that earns Ultimate Rewards, such as the Sapphire Preferred, Sapphire Reserve or Ink Business Preferred Credit Card.

With these cards, you can convert that initial $300 cash back into 30,000 Chase Ultimate Rewards points (as well as converting any subsequent points you earn on the card) and transfer them to airline or hotel partners.

Related: The best credit cards for everyday spending

Perks

Secondary rental car coverage is one of the benefits of holding a Chase Freedom Unlimited card. (Photo by Mikbiz/Shutterstock)

You get what you pay for when it comes to card benefits, and since the Chase Freedom Unlimited has no annual fee, it’s not surprising that it doesn’t offer many perks and benefits. Still, there are a few nice features worth highlighting:

  • 0% intro APR for the first 15 months on purchases and balance transfers, then a variable APR of 19.74% - 28.49% Variable
  • Secondary car rental insurance for theft and collision damage on most cars in the U.S. and internationally.
  • Purchase protection that covers new purchases for 120 days against damage or theft up to $500 per claim and $50,000 per account.
  • Extended warranty protection that extends the time period of a U.S. manufacturer’s warranty by an additional year, on eligible warranties of three years or less.
  • Rewards that don’t expire as long as your account is open.
  • Tap to pay with your contactless card.
  • Travel and emergency assistance that can arrange legal and medical referrals or other travel and emergency assistance if you run into a problem away from home (although you will be responsible for the cost of any goods or services).

Note that the Freedom Unlimited charges a 3% foreign transaction fee, so this isn’t the best card to take with you when traveling outside of the country.

Related: Best credit cards with no foreign transaction fees in 2021

Earning

The Freedom Unlimited has long been hailed as a great card for non-bonus spending since it earns 1.5% back across all purchases. In addition to this great 1.5% earning rate, you'll also earn:

  • 5% back on travel booked through Ultimate Rewards.
  • 3% back on dining (including takeout and eligible delivery services).
  • 3% back at drugstores.

Redeeming

(Photo by John Gribben for The Points Guy)

You can redeem the cash back earned on your Chase Freedom Unlimited as a statement credit or for a direct deposit into most U.S. checking and savings accounts. Alternatively, you can use your rewards in the Ultimate Rewards portal for travel, shop with them at Amazon.com or redeem them for gift cards.

However, as mentioned earlier with the sign-up bonus, you can maximize redemptions on your Freedom Unlimited if you also have one of three other Chase cards — the Chase Sapphire Preferred Card, the Chase Sapphire Reserve or the Ink Business Preferred Credit Card. With these cards, you can turn your Chase Freedom Unlimited cash-back points into full-fledged Ultimate Rewards points.

Related: The power of the Chase Trifecta: Sapphire Reserve, Ink Preferred and Freedom Unlimited

What cards compete with the Chase Freedom Unlimited?

There are currently two cards that give the Chase Freedom Unlimited a run for its money, offering ways to earn valuable transferable points without paying an annual fee.

The first is the Chase Freedom Flex, which currently offers a $200 sign-up bonus after you spend $500 on purchases in the first three months.

(Photo by John Gribben for The Points Guy)

The Chase Freedom Flex earns 5% cash back, on your first $1,500 in purchases each quarter you activate, in rotating categories that change every quarter. Then, on all other non-category purchases, you are only earning 1% cash back.

Both cards earn 5% back on travel booked through Chase Ultimate Rewards plus 3% back on dining and drugstore purchases. Although 5% back is certainly better than 1.5% back, the $1,500 cap and rotating cash-back categories can make it harder to maximize the Freedom Flex’s benefits. You’ll have to look at your own spending patterns to see whether the Freedom Flex or the Freedom Unlimited makes sense for you.

The other obvious competitor is the Amex EveryDay® Credit Card from American Express. This no-annual-fee card offers a 10,000-point welcome offer after spending $2,000 in purchases in the first six months of card membership, and earns 2 points per dollar on your first $6,000 in spending at U.S. supermarkets each calendar year, then 1 point per dollar.

The information for the Amex EveryDay card has been collected independently by The Points Guy. The card details on this page have not been reviewed or provided by the card issuer.

(Photo by Eric Helgas for The Points Guy)
(Photo by Eric Helgas/The Points Guy)

One major advantage that the EveryDay card has over the Freedom Unlimited is that you can transfer points from the EveryDay card to American Express’ airline and hotel partners without having to pair it with any other Amex cards.

The other unique benefit of the EveryDay card is that you’ll earn a 20% bonus on your points when you make 20 or more purchases in a billing cycle, but that still falls short of the flat 1.5% rate that the Freedom Unlimited earns on non-bonus spending unless you’re mostly making small purchases at grocery stores. TPG values Amex Membership Rewards points at 2 cents each, so you’ll get the same value per point with either card.

However, just note that you must have a more premium-level Chase card in order to truly maximize the earnings on the Freedom Unlimited.

Related: Why Chase Sapphire Preferred and Freedom Unlimited are the perfect beginner combo

Bottom line

The Chase Freedom Unlimited is a great card for everyday, non-bonus spending and can provide incredible value when paired with a premium Chase card. So if you’re just starting out with credit cards and want to build up valuable travel points quickly, the Freedom Unlimited card should be high on your list.

Official application link: Chase Freedom Unlimited.

Additional reporting by Stella Shon.

Featured image by (Photo by Orli Friedman / The Points Guy)
Editorial disclaimer: Opinions expressed here are the author’s alone, not those of any bank, credit card issuer, airline or hotel chain, and have not been reviewed, approved or otherwise endorsed by any of these entities.