There are basically two types of cash back credit cards. There are those that offer 1% cash back on most purchases, as well as bonus cash back (often 5%) for certain types of purchases. Then there are cards that offer more than 1% return on all your purchases, but don’t get any special cash back offers.
The Chase Freedom Unlimited falls broadly into the second category of cards, with 1.5% cash back on all purchases. But a new limited-time offer also lets you earn a fantastic cash back bonus on one of your most common purchases. In addition to 1.5% cashback on most purchases, you will get 5% discount on groceries for 12 months. New cardholders can get an easy welcome bonus of $ 200 in cash to get started.
Does this card make sense to you? Well, for what it’s worth, I’ve been studying and writing about credit cards since 2008, and have held dozens of accounts. And this is the card that I use today for the vast majority of my purchases.
Key Terms: Chase Freedom Unlimited
- Welcome bonus: Earn $ 200 cash back after spending $ 500 on new purchases within three months of opening the account.
- Awards: 1.5% cash back on all purchases, plus 5% cash back on your first $ 12,000 spent at grocery stores within 12 months of opening the account.
- Annual subscription : $ 0
- APR: 14.99% –23.74%
- Promotional financing offer: 15 months of 0% APR financing on new purchases.
How Chase Freedom Unlimited Rewards Work
Unlike the standard Chase Freedom, which offers limited amounts of 5% cash back on specific purchases in rotating categories and 1% cash back elsewhere, the Unlimited freedom offers 1.5% cash back on anything you buy with the card. Plus, a new offer includes 5% cash back on your first $ 12,000 spent at grocery stores within 12 months of opening the account. New applicants also receive 15 months of 0% APR financing on new purchases.
The cash back rewards for this card come in the form of Chase Ultimate Rewards points, which can be redeemed not only for cash back, but also travel, merchandise, and gift cards. If you also have another Chase card like Sapphire Reserve, Sapphire Preferred on Ink Business Preferred, you can combine your points with those from those accounts and transfer them to airline miles or hotel points.
Other features include purchase protection and extended warranty coverage. You also earn 5% Cash Back on Lyft rides through March 2022 and get three free months of DashPass, DoorDash’s subscription service that offers unlimited deliveries for a $ 0 delivery fee on qualifying orders. over $ 12.
There is no annual fee for this card.
The hunt Unlimited freedom Would be worth buying just for its $ 200 welcome bonus, which is easy to earn assuming you spend over $ 500 on the card in the first three months. But you have the potential to earn that many times over with the new 5% grocery offer valid for your first year. Its valuable promotional financing offer allows you to extend the payment of your new purchases for up to 15 months, without incurring any interest charges.
Otherwise, this card is more suitable for those who just want to use one card for all or most of their purchases while enjoying a high rate of return. This card especially makes sense for those who wish to complete one of their other premium Chases. reward cards.
While 1.5% cash back is a high rate of return, some cards have reward up to 2%. In addition, this card has an overseas transaction fee of 3%, while many cards do not have such fees. Like most reward cards, the Chase Freedom Unlimited has a higher standard interest rate than similar cards that do not offer rewards. If you need to keep a balance, you should look for a non-reward card with the lowest standard interest rate available.
Citi® Double Cash: This Citi card offers you cash back instead of reward points, and is a very simple card use. It offers 1% cash back at the time of purchase, and another 1% cash back when you pay for your purchases, for a total of up to 2% cash back with no limit. It has 18 months of 0% introductory APR on balance transfers (so a variable 13.99% to 23.99% APR applies) with a 3% balance transfer fee. There is no annual fee for this card, but there is also no welcome bonus.
Citi + ® Rewards Card. This card gives you double the points at grocery stores and gas stations, but only on your first $ 6,000 in combined purchases each year. All other purchases earn one point per dollar spent. Citi will round the points you have earned to the nearest 10 points and you will get 10% of your redeemed points back. As a welcome bonus, new cardholders can earn 15,000 points after spending $ 1,000 within three months of opening the account. New cardholders will receive 15 months of 0% introductory APR funding on new purchases and balance transfers (with a 3% balance transfer fee). After that, the standard rate of 13.49% – 23.49% (variable applies). There is no annual fee for this card.
PenFed Power Cash Rewards: This card offers 1.5% cash back on all purchases, and you’ll get 2% if you’re a PenFed Honors Advantage member, which you can become by opening a free checking account. New applicants receive a $ 100 credit after using their card to spend $ 1,500 within 90 days of opening the account. There is no annual fee for this card.
Bottom Line: Is the Chase Freedom Unlimited worth it?
The Chase Freedom Unlimited was already a popular rewards card, but Chase is clearly trying to attract new customers who also want a cash bonus for certain purchases. By offering 5% back on groceries for one year and a competitive cash back rate on all other purchases, the Unlimited freedom becomes one of best credit cards with free cash back you will find in 2020.