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

Oct 26, 2020

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Chase Freedom Unlimited Overview

The no-annual-fee Chase Freedom Unlimited is a perfect card for both beginner and advanced award travelers. You’ll earn at least 1.5% back on purchases, which makes it great for non-bonus spending. But new bonus categories also make it easier to maximize other spending. If you pair this with a card that earns 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.

Hidden behind advertising that focuses on cash back, the Chase Freedom Unlimited actually packs a mighty punch. At first glance, it seems like a tame card with a modest sign-up bonus, a cash-back focus and no bonus categories — but there’s a lot more to it.

Not only does the Chase Freedom Unlimited consistently stay near the top of my wallet, but it’s also my first recommendation to people just starting to dip into the world of travel rewards. When I was in college, I found that this simple card with no annual fee was much easier to 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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In This Post

Who is this card for?

If you’re new to points and miles, the Chase 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, 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 offers 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 automatically 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.

Related: Maximize your wallet with these Chase credit cards

An elevated sign-up bonus: $200 + 5% back on groceries

(Photo by PR Image Factory/Shutterstock)
(Photo by PR Image Factory/Shutterstock)

The Chase Freedom Unlimited has elevated its typical sign-up bonus to include two components: cash back (or points) and an introductory 5% bonus category. New applicants will earn a $200 bonus after spending $500 in their first three months, as well as 5% cash back (5x points per dollar) on up to $12,000 of grocery store purchases (not including Target or Walmart purchases) in their first year.

Plenty of cards are offering grocery store bonuses right now, but 5% back/5x Ultimate Rewards points per dollar is one of the better offers out there. Additionally, the $12,000 cap and one-year timeframe make this bonus much more generous than many of the limited-time offers we’re seeing on other cards. If you’re able to max out this bonus, you’ll walk away with a grand total of $800/80,000 Ultimate Rewards points, making this sign-up bonus more valuable than what you’d find on the Chase Sapphire Preferred Card or Chase Sapphire Reserve.

Keep in mind that with the Freedom Unlimited, your cash back can be transferred into Chase Ultimate Rewards points — but only if you already have another card that earns Ultimate Rewards, such as the Chase Sapphire Preferred, Chase Sapphire Reserve or the Ink Business Preferred Credit Card. With these cards, you can transfer that initial $200 cash back into 20,000 Chase Ultimate Rewards points (as well as transferring any subsequent points you earn on the card) and transfer them to airline or hotel partners or use them in the Chase Ultimate Rewards portal.

Related: The best credit cards for everyday spending

Perks

(Photo by Mikbiz/Shutterstock)
Roadside assistance 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:

  • 0% intro APR for the first 15 months on purchases, then a variable APR of 14.99% – 23.74% applies
  • Purchase protection that covers new purchases for 120 days against damage or theft up to $500 per claim and $50,000 per account
  • An extended warranty 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)
  • Complimentary Visa Signature concierge service
  • Roadside assistance that can dispatch help, from a tow or jump-start to a tire change, lockout service, winching or gas delivery (but you’ll need to pay for any roadside service fees)

Note that the Freedom Unlimited charges a 3% foreign transaction fee, so this is not the best card to take with you on an international vacation.

Related: Best credit cards with no foreign transaction fees in 2020

Earning

The card has long been hailed as a great card for non-bonus spending since it earned 1.5% back across all purchases. But the card got a refresh this year and some new bonus categories on top of the 1.5% back that increases its value. You’ll earn 5% back at grocery stores as part of the sign-up bonus, but you’ll also earn 5% back on travel booked through Ultimate Rewards, 3% back on dining and 3% back on drugstores. Thanks to Chase’s recent partnership with Lyft, you can also earn 5% cash back on Lyft rides paid for with the Freedom Unlimited. When you pair that with an Ultimate Rewards card like the CSP, that could mean earning 5x points.

The card has always offered a solid rewards rate, but the addition of these new categories makes it an even more impressive no-annual-fee option.

(Photo by Wyatt Smith/The Points Guy)
(Photo by Wyatt Smith/The Points Guy)

Redeeming

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

However, as with the sign-up bonus, you can maximize your Chase Freedom Unlimited cash back 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 combine your Chase Freedom Unlimited cash-back points onto these three cards and turn them into full-fledged Ultimate Rewards points.

Chase did recently expand its Pay Yourself Back feature to include the Chase Freedom Unlimited. Points are currently worth 25% more when redeemed toward donations made to eligible charitable organizations through Dec. 31, 2020. However, the program itself is sticking around indefinitely as another way to redeem your Chase Freedom Unlimited rewards.

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. The Freedom Flex and Freedom Unlimited cards are remarkably similar, with the only real difference being the earning structure. The information for the Chase Freedom Flex 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 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 (again, the cash back comes as 5x Ultimate Rewards points). Both cards earn 5% back on travel booked through Ultimate Rewards and 3% back on dining and drugstores. Although 5x is certainly better than 1.5x, the $1,500 cap and changing categories can make it tough to maximize the Freedom Flex’s benefits fully. 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 $1,000 in purchases in the first three months, and earns 2x on your first $6,000 in spending at U.S. supermarkets each year, then 1x. 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 for 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 needing to have 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 1.5x rate that the Freedom Unlimited earns on non-bonus spend 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.

Related: Chase Freedom vs. Chase Freedom Unlimited: Which card is right for you?

Bottom line

Premium cards such as the Chase Sapphire Reserve offer an incredible amount of value; it takes pages to describe all the perks, bonuses, benefits and redemptions options. That’s not a complaint, but there’s something to be said for simplicity. 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.

Additional reporting by Liz Hund and Madison Blancaflor.

Featured photo by The Points Guy

Chase Sapphire Preferred® Card

WELCOME OFFER: 60,000 Points

TPG'S BONUS VALUATION*: $1,200

CARD HIGHLIGHTS: 2X points on all travel and dining, points transferrable to over a dozen travel partners

*Bonus value is an estimated value calculated by TPG and not the card issuer. View our latest valuations here.

Apply Now
More Things to Know
  • Earn 60,000 bonus points after you spend $4,000 on purchases in the first 3 months from account opening. That's $750 toward travel when you redeem through Chase Ultimate Rewards®
  • 2X points on travel and dining at restaurants worldwide, eligible delivery services, takeout and dining out & 1 point per dollar spent on all other purchases.
  • Get 25% more value when you redeem for travel through Chase Ultimate Rewards®. For example, 60,000 points are worth $750 toward travel.
  • With Pay Yourself Back℠, your points are worth 25% more during the current offer when you redeem them for statement credits against existing purchases in select, rotating categories.
  • Get unlimited deliveries with a $0 delivery fee and reduced service fees on orders over $12 for a minimum of one year on qualifying food purchases with DashPass, DoorDash's subscription service. Activate by 12/31/21.
  • Earn 2x total points on up to $1,000 in grocery store purchases per month from November 1, 2020 to April 30, 2021. Includes eligible pick-up and delivery services.
Regular APR
15.99%-22.99% Variable
Annual Fee
$95
Balance Transfer Fee
Either $5 or 5% of the amount of each transfer, whichever is greater.
Recommended Credit
Excellent/Good

Editorial Disclaimer: Opinions expressed here are the author’s alone, not those of any bank, credit card issuer, airlines or hotel chain, and have not been reviewed, approved or otherwise endorsed by any of these entities.

Disclaimer: The responses below are not provided or commissioned by the bank advertiser. Responses have not been reviewed, approved or otherwise endorsed by the bank advertiser. It is not the bank advertiser’s responsibility to ensure all posts and/or questions are answered.