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The Chase Freedom Unlimited® is an excellent option for consumers looking for a credit card that does not charge an annual fee and is a leading candidate for this accolade. It combines a refreshingly straightforward approach to rewards with competitive cash-back rates across a balanced array of categories, an accessible welcome bonus, and a 0% introductory annual percentage rate (APR), in addition to some other benefits as a fringe benefit.
Freedom Unlimited has maintained its position as one of our best cash-back rewards cards, and it is likely to be a viable alternative for the vast majority of people to a premium travel credit card, which typically has a significant annual fee associated with it.
In the following article:
Intro Bonus
Earn an additional 1.5% cash back on everything you buy (up to $20,000 spent in the first year) with this special introductory offer, which could be worth as much as $300 cash back!
APR14.99% – 23.74% Variable
Encouraged Use of Credit Excellent/Good
Payout Proportions
Enjoy 5% cash back on travel purchases made through Chase Ultimate Rewards®, our premier rewards program that gives you the option to redeem rewards for cash back, travel, gift cards, and other things;
3% cash back on purchases made at pharmacies as well as dining out at restaurants, including takeout and delivery services that qualify.
1.5% discount on all other acquisitions
Fee Paid Annually $0
APR introductory purchase 0% APR introductory purchase rate for the first 15 months
0% introductory APR on balance transfers for the first 15 months of the account’s existence.
Fees for Balance Transfers are $5 or 5% of the amount being transferred, whichever is greater; the fee is applied to each transaction.
Balance Transfer APR14.99% – 23.74% Variable
Transaction Fees for Foreign Exchange Amounting to 3% of Each Transaction in US Dollars
APR of Penalty Up to 29.99% Possible
Enjoy 5% cash back on travel purchases made through Chase Ultimate Rewards®, our premier rewards program that gives you the option to redeem rewards for cash back, travel, gift cards, and other things;
3% cash back on purchases made at pharmacies as well as dining out at restaurants, including takeout and delivery services that qualify.
1.5% discount on all other acquisitions
Credit cards issued by Chase are also relevant.
rebates in the form of cash
Even though there are a wide variety of credit cards that offer rewards, such as cash-back, gas, and airline credit cards, this card is a good option for you if you put an emphasis on keeping things straightforward. It is not necessary for you to decipher rewards charts, plan travel around currently available deals, or redeem or transfer points in a strategic manner.
The Chase Freedom Unlimited credit card offers a flat cash-back rate of 1.5% on all purchases, which positions it favorably at the beginning of the competition. However, Freedom Unlimited comes with additional perks such as 3% cash back on purchases made at restaurants and drugstores and 5% cash back on any travel purchases made through Chase Ultimate Rewards, the issuer’s platform for rewards.
The majority of credit cards that offer cash-back rewards do not provide a rate of return that is higher than one percent (1%). In general, credit cards tend to specialize in a small number of categories and offer only 1% cash back on purchases made in areas that are not one of those categories. There are a few exceptions to this rule, including the Wells Fargo Active CashSM Card (which offers 2% cash rewards on purchases) and the Citi® Double Cash Card (which offers 1% cash back when you make a purchase and another 1% when you pay for the purchase). Both of these cards are examples of credit cards that offer cash rewards.
The Chase Freedom Unlimited is the only credit card that offers a good flat rate of cashback of 1.5%, in addition to three additional bonus categories: 5% cash back on travel purchases made through Chase Ultimate Rewards (including airline tickets, hotels, car rentals, and cruises), 3% cash back on dining at restaurants (including takeout and eligible delivery), and 3% cash back on purchases made at drugstores. In addition, cardholders have the opportunity to earn 5% cash back on qualifying Lyft rides through March 2022. To reiterate, it is extremely unusual to come across a credit card that offers such high rates in addition to such a wide variety of reward categories.
Additionally, the welcome bonus is competitive, and it does not necessitate reaching a certain spending threshold in order to activate it. During the first year, you are eligible to receive an additional 1.5% cash back on up to $20,000 worth of spending, which can net you up to $300. Other top cards may require a spending threshold of $1,000 or more before releasing the welcome bonus, which is frequently issued in the form of miles or points, neither of which is particularly convenient.
Making reservations through the Chase Ultimate Rewards platform.
It is noteworthy to receive 5% cash back on travel purchases given that this type of reward is typically only available with premium travel rewards credit cards that come with annual fees. The catch, however, is that the five percent rewards rate is only applicable to travel purchases made through Chase Ultimate Rewards, which makes use of a travel platform provided by a third party.
One of the benefits of using a booking tool provided by a third party is the ability to compare the prices offered by a number of different airlines. The application is uncomplicated, simple, and user-friendly, and it can be accessed directly from your card account on the Chase website. Since you didn’t book your reservation directly with the airline or hotel, dealing with any problems that may arise with your booking could be challenging. This is especially true for airlines. You will not earn hotel points or credits either, but if you are a member of the airline’s frequent flyer program, you should be able to earn miles whenever you fly with that airline.
Your Chase Freedom Unlimited Rewards can be redeemed at any time.
The ease of use of cash-back rewards credit cards is one of the most significant benefits they offer, as was discussed earlier. With the Chase Freedom Unlimited credit card, you can cash in your rewards for any amount (there is no minimum), either as a statement credit or as a direct deposit into the majority of checking and savings accounts in the United States.
In addition, customers of Chase can use their points to make purchases at Amazon or redeem their rewards for gift cards. Although you have the option to go this route, you will find that the rates are lower and the selection is more restricted.
If you have either the Chase Sapphire Preferred® Card or the Chase Sapphire Reserve® Card, which are respectively Chase’s travel rewards card and premium travel rewards card, you have another option for redeeming your rewards. When you book travel through Chase Ultimate Rewards, you can increase the value of your Ultimate Rewards points by up to 1.25 cents for Chase Sapphire Preferred cardholders and 1.5 cents for Chase Sapphire Reserve cardholders by transferring them to either of these cards. If you already have one of these cards, you can transfer your Ultimate Rewards points to either of these cards.
If you already have multiple Chase credit cards, you have access to this redemption option, which is a nice perk. However, if you want to increase the value of your Chase Freedom Unlimited card, you should not sign up for another Chase credit card. However, if you already have the Chase Sapphire Preferred or Chase Sapphire Reserve credit card, switching to the Freedom Unlimited credit card could be a smart move for you to make.
In addition, benefits
The Chase Freedom Unlimited credit card comes with additional benefits that are not particularly exceptional but are still noteworthy. You will receive an auto rental collision damage waiver when you use the card to make a reservation for a rental car, and trips that are booked using the card are eligible for cancellation insurance.
Through the use of this credit card, Chase additionally provides purchase protection. This means that in the event that the goods that were purchased with the card are stolen or damaged, Chase will repair, replace, or reimburse up to $500 per claim, on a total of up to $50,000 per account.
Cardholders are eligible for a number of additional benefits, including a three-month free trial of DoorDash’s subscription service, DashPass, which entitles them to free delivery on certain orders, followed by nine months of a 50% discount. This offer needs to be redeemed by the 31st of March in 2022.
By linking your credit card directly to your Amazon account, you will be able to redeem your cash back on purchases made through Amazon. If you choose Chase Freedom Unlimited as your payment method when you go to make a purchase, a prompt will appear underneath giving you the option to apply your Chase rewards to the purchase. This option is only available if you select Chase Freedom Unlimited as your payment method.
Last but not least, the Freedom Unlimited credit card offers a 0% introductory annual percentage rate (APR) on purchases and balance transfers for the first 15 months after you open an account with the card (the APR ranges from 14.99% to 23.74% thereafter), which is an unusually attractive perk for a cash-back card. Transfers made within the first 60 days of account opening are subject to a one-time balance transfer fee of either $5 or 3% of the amount of each transfer, whichever is greater. After the initial period, the balance transfer fee is either $5 or 5% of the amount of each transfer, whichever is greater. Keep in mind that extending your balance beyond that period could immediately reduce the potential cash-back rewards you are eligible for.
Comparable cards
There are two distinct kinds of credit cards that are, in a variety of ways, analogous to the Chase Freedom Unlimited card. Flat-rate credit cards such as the Wells Fargo Active Cash and the Citi Double Cash also provide higher-than-average rewards for purchases. The Wells Fargo Active Cash provides 2% cash rewards on purchases, and the Citi Double Cash provides 1% cash back when you make a purchase and 1% cash back when you pay it off. The difference can become significant for those who spend more frequently and more than the 0.5% over time can add up. When you sign up for the Active Cash card, you have the opportunity to earn a $200 cash rewards welcome bonus after making $1,000 in purchases within the first three months of account opening. The Double Cash card does not provide a welcome bonus or any additional reward categories.
The American Express Platinum Card® and the Chase Sapphire Reserve® are the two other credit cards that can be compared to the Freedom Unlimited. On the one hand, it may appear to be an absurd comparison given that the annual fees for these cards are $695 and $550, respectively (for more information, see rates and fees). On the other hand, it is appropriate in light of the fact that certain travel purchases qualify for a rewards rate of 5%. The Platinum Card from American Express earns 5X points on flights booked directly with airlines or with American Express Travel, on up to $500,000 on these purchases per calendar year, while the Sapphire Reserve earns 5X points on air travel booked through Chase Ultimate Rewards (terms apply). According to The Points Guy, the value of those points will change depending on the method that is used to redeem them; however, users can expect to receive somewhere between 1 and 2 cents for each point.
These comparisons highlight how different Freedom Unlimited is from other products. It is an easy-to-use rewards card that does not charge an annual fee and can compete favorably with expensive premium category cards. Consider applying for one of the premium cards if you put a significant amount of money toward your travel expenses and are comfortable making strategic point redemptions. Consider applying for either the Chase Freedom Unlimited or the Wells Fargo Active Cash Card if you’re looking for a less complicated alternative.
FAQs
How do credit cards that give you cash back actually work?
The rewards that cardholders receive for their spending can either take the form of statement credits or cold hard cash with cash-back credit cards. A reduction in the amount that is due to the credit card company on your monthly bill is represented by a statement credit. It is important to keep in mind that rewards are not always accessible in the same month that they are earned; rather, credit card issuers will typically apply rewards to your balance after one or two billing cycles have passed.
The procedure for redeeming rewards on cash-back credit cards is typically automatic or, failing that, not overly complicated. There are some credit cards that will add your cash rewards to your statement balance on a monthly basis automatically. In other cases, you will need to log in to your account in order to redeem any available rewards points for account credits. The vast majority of points do not become invalid over time; however, you will lose them if you close your account prior to being able to redeem them.
What distinct categories of cash-back credit cards are there to choose from?
There are typically four primary classifications that are used to classify cash-back credit cards: flat-rate, tiered, rotating, and choose your own. Cards with a flat rate charge the same percentage on each and every purchase. Spending in different categories will earn you a different percentage back in rewards with a tiered credit card. The rewards that are available on rotating category cards change on a quarterly basis and are selected by the card issuer. Cards that let you select your own reward category to give you more freedom in how you spend your points.
How do you choose a credit card that gives you cash back?
First and foremost, you need to have a crystal clear idea of how you currently spend your money on a monthly basis before you can choose the cash-back credit card that will be the most beneficial to you. After you have determined the spending categories in which you tend to spend the most money on a regular basis, you can use the charts included in our list to determine which credit card will provide you with the highest return. Think about things like the annual percentage rate (APR), sign-up bonuses, and fees for making transactions in other countries as well. Be sure to get something that is suitable for your way of life and the way you typically spend your money.
Your credit score may also play a role in the credit card that you decide to apply for. A good or excellent credit score, which is typically defined as a score of 670 or higher, is required to apply for the majority of the credit cards that we recommend. There are credit cards available, such as secured credit cards, that are designed specifically for those who are working to rebuild their credit but do not currently meet the credit criteria that are required. You also have the option of researching the best credit cards for people with poor or no credit, as well as the best credit cards for people with no credit at all.
Are rewards credit cards that give you cash back preferable to those that give you points or miles?
Because the value of points and miles can be easily converted into cash, cash-back credit card systems are typically easier to comprehend than point-and-mile credit card structures. Even though they are more complicated, points and miles might have a better value for redemption in many situations. This is because the issuer of the points and miles might have established relationships with retailers of travel and goods. In the end, the choice of which alternative is preferable is determined not only by your spending and lifestyle preferences but also by whether or not you are willing to deal with the process of redeeming your rewards.
Our approach
We take a look at the credit cards that are currently in the most demand and provide the most valuable benefits. When you open an account, we will thoroughly review the terms and conditions to ensure that there are no unpleasant surprises. We analyze each card’s most distinguishing qualities and evaluate them in relation to those of other top cards. In this way, readers have the option of selecting a different card with comparable features in the event that the card we choose does not meet their needs. Our reviews are checked and updated on a regular basis to incorporate any new recommendations, as well as to reflect any changes in the market or in the products that are currently available.
A continuous flow of information and guidance will assist you in making the most informed choices regarding your finances.
Please click here to view the rates and fees associated with The Platinum Card from American Express.
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