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At a glance
With a 1.5% flat rate cash back on all purchases in addition to three everyday bonus categories, the no-annual-fee Chase Freedom Unlimited® is a great all-purpose credit card for those who don’t want to juggle multiple category-specific cards. A potentially lucrative welcome bonus and introductory APR offer sweeten the deal, but foreign transaction fees make this card a poor option for international travelers.
The Chase Freedom Unlimited® is a jack-of-all-trades credit card great for those who either aren’t sure what they want from a credit card or want an all-purpose option rather than juggling a rolodex of different cards. The card offers well-rounded cash-back rewards with elevated rates on restaurants, drugstores and travel booked through Chase Travel. It also has a welcome bonus and an introductory APR offer that’s nearly on par with some of the best balance transfer cards. And no annual fee.
Despite its substantial 5% cash-back rewards on travel booked through Chase Travel, this isn’t the best credit card for travel because it charges foreign transaction fees. Instead, this card is best used as a low-maintenance everyday credit card that earns decent cash back on popular spending categories. Its introductory APR makes it a good option for an emergency credit card, since you can take time to pay off unexpected expenses while avoiding interest charges.
Read more: Chase Credit Cards
Pros
- A lucrative welcome bonus
- A decent introductory APR offer on both purchases and balance transfers despite not being a dedicated balance transfer card.
- You'll earn Chase Ultimate Rewards points, which can be transferred to a premium (annual-fee-bearing) Chase credit card for boosted rewards value.
Cons
- 1.5% cash back on all purchases is less than some other flat-rate cash-back cards which offer 2%.
- A 3% foreign transaction fee makes this card costly to use abroad.
- The balance transfer fee increases from 3% to 5% ($5 minimum) on transfers made after your first 60 days.
Who is this card best for?
- Those looking for an all-purpose option to use as their only credit card. The Chase Freedom Unlimited offers 5% cash back on travel booked through the Chase Travel portal, 3% cash back on dining and drugstore purchases and 1.5% cash back on everything else. The 5% and 3% category-specific cash-back rates are standard among rewards credit cards, but the 1.5% category-agnostic cash-back rate is higher than many competitors.
- Those who want a balance transfer card that also offers rewards. This card’s introductory APR timeframe isn’t the longest out there, but it still gives you a good amount of time to pay off your purchases. But the Chase Freedom Unlimited offers better rewards and cardholder perks than dedicated balance transfer cards.
Who isn’t this card best for?
- Those who plan to earn rewards with multiple cards. One of the Chase Freedom Unlimited’s main benefits is that it offers competitive -- but not necessarily standout -- rewards rates across multiple everyday spending categories. But to maximize rewards, you’ll want multiple cards, each with elevated rewards on specific categories. If you’re willing to juggle multiple cards, you can find better rates than the Chase Freedom Unlimited offers in specialized categories.
- Those who plan to travel abroad. The Chase Freedom Unlimited’s 3% foreign transaction fees make it costly to use abroad. If you’re a frequent international traveler looking for a no-annual-fee cash back card, check out Capital One and Discover’s offerings instead.
- Those who’ve recently opened a lot of credit cards. Many people have reported a trend known unofficially as Chase’s 5/24 rule, where you likely won’t be approved for a new Chase credit card if you’ve opened more than five personal credit cards in the past 24 months. (Note that certain business credit cards may not be counted toward the 5/24 limit.) If this applies to you, you should hold off on applying for the Chase Freedom Unlimited, as your application will likely be denied.
A closer look at the Chase Freedom Unlimited
Highlights
- Rewards rate: This card doesn't offer cash back, miles, or points
- Welcome offer: Earn an extra 1.5% on everything you buy (on up to $20,000 spent in the first year) — worth up to $300 cash back. That’s 6.5% on travel purchased through Chase Travel℠, 4.5% on dining and drugstores, and 3% on all other purchases.
- Annual fee: $0
- Purchase intro APR: 0% Intro APR on Purchases for 15 months
- Regular APR: 19.49% - 28.24% Variable
Cash-back rewards and welcome bonus
While there are many different types of rewards credit cards -- including cash back, gas and airline credit cards -- this card is a good fit if you prioritize simplicity. It doesn’t require you to decipher rewards charts, book travel around available deals or strategically redeem or transfer points.
The Chase Freedom Unlimited has a 1.5% flat cash-back rate on all purchases, making it competitive to start. But the Chase Freedom Unlimited also offers 5% back on travel purchases made through Chase Ultimate Rewards -- the issuer’s rewards platform -- as well as 3% on dining at restaurants and drugstore purchases.
Most cash-back rewards credit cards don’t offer more than 1% back as a flat rate. Generally speaking, tiered cash-back cards like the Chase Freedom Unlimited usually specialize in a few categories and offer only 1% back on purchases outside those categories. On the other hand, flat-rate cash-back cards offer a higher rate on general purchases but no bonus categories with elevated rewards. This includes the Wells Fargo Active Cash® Card (2% cash rewards on purchases).
The Chase Freedom Unlimited stands alone as the only card with a good flat rate of 1.5% cash back plus three additional bonus categories: 5% back on travel purchases made through Chase Travel (including airline tickets, hotels, car rentals and cruises), 3% on dining at restaurants (including takeout and eligible delivery) and 3% on drugstore purchases. Through March 2025, cardholders can also earn 5% cash back on qualifying Lyft rides. Again, it’s rare to find a card with such high rates alongside so many reward categories.
The welcome bonus is lucrative, but it does require a higher level of spending to earn the maximum amount -- you can earn an extra 1.5% on everything you buy (up to $20,000) in the first year for up to $300 cash back.
Booking travel through Chase Travel
Getting 5% cash back on travel purchases is notable, since such a reward is usually only found with top travel rewards credit cards that charge annual fees. The catch, however, is that the 5% rewards rate is limited to travel purchases made through Chase Travel, which uses a third-party travel platform.
The advantage of using a third-party booking tool is that you can compare multiple airlines and seek out good deals. The tool is straightforward, easy to use and can be accessed from your card account on the Chase website. The disadvantage is that airlines and hotels can be difficult if any issues arise with your reservation, since you didn’t book it directly with them. You also won’t earn hotel points or credits, though you should earn frequent flyer miles on flights if you’re signed up for the airline’s program.
Redeeming your Chase Freedom Unlimited Rewards
As mentioned above, one of the main advantages of cash-back rewards credit cards is simplicity. You can redeem cash back as a statement credit or direct deposit into most US checking and savings accounts. Additionally, you can opt to redeem rewards for gift cards or shop with points at Amazon.com. However, you’ll typically get more bang for your buck with other redemption methods, such as travel.
You can enjoy greater rewards value if you have a premium Ultimate Rewards card like the Chase Sapphire Reserve® or the Chase Sapphire Preferred® Card. If you have one of these cards, you can transfer your Ultimate Rewards points to either, boosting their value to 1.25 cents apiece for the Chase Sapphire Preferred and 1.5 cents per point for the Chase Sapphire Reserve when redeeming for travel through Chase Travel℠.
Those two cards also allow you to transfer your points to Chase’s airline and hotel partners to book directly with their loyalty programs, potentially giving you even more value from your points.
This redemption option is a nice perk for those with multiple Chase credit cards, but don’t sign up for another card just to increase the value of your Chase Freedom Unlimited. However, if you already have the Chase Sapphire Preferred or Chase Sapphire Reserve, signing up for the Chase Freedom Unlimited could be a great way to boost your Ultimate Rewards points stash.
Additional perks
The Chase Freedom Unlimited offers additional perks that are fairly standard but worth noting. When booking a car rental with the card, you’ll get an auto rental collision damage waiver, and trips booked with the card are eligible for cancellation insurance. Canceled trips due to sickness, severe weather or other eligible circumstances are covered up to $1,500 per person and $6,000 per trip.
If you buy something with your card that ends up damaged or stolen within the first 120 days of your purchase, Chase will cover the cost up to $500 per claim and $50,000 per account.
Cardholders can also get three months of DashPass, DoorDash’s subscription service, which allows you to get free delivery on eligible orders, followed by nine months of 50% off. This offer must be activated by Dec. 31, 2024.
Introductory APR offer
The Chase Freedom Unlimited offers 0% introductory APR on purchases and balance transfers for the first 15 months from opening your account (19.49% to 28.24% variable APR thereafter), which is a fairly distinct feature for a cash-back card. There is an intro balance transfer fee of either $5 or 3% of the amount of each transfer, whichever is greater, on transfers made within 60 days of account opening (after that, either $5 or 5% of the amount of each transfer, whichever is greater). Remember that carrying a balance beyond that period could immediately erode potential cash-back rewards.
The bottom line
A jack of all trades, the Chase Freedom Unlimited is best for people who want to earn competitive rewards without juggling multiple credit cards or memorizing complicated rewards categories and rules. If you’re looking for something specific — whether an extended introductory APR offer or high cash back on a particular category — you can find specialized options elsewhere, but the Chase Freedom Unlimited shines for its flexibility and well-roundedness.
FAQs
Cash-back credit cards offer cardholders rewards on their spending in the form of statement credits or cash. A statement credit is a reduction in the amount due to the credit card company on your monthly bill. Note that rewards are not always available the month you earn them — they’re usually applied to your balance by credit card issuers after one or two billing cycles.
The redemption process for cash-back credit cards is either automatic or otherwise simple. Some cards automatically apply cash rewards to your statement balance each month. Others require you to log in and redeem available rewards points for statement credits. Most points don’t expire, but you will lose them if you close the account before redeeming them.
Cash-back credit cards generally fall into four primary categories: flat-rate, tiered, rotating or choose your own. Flat-rate cards offer the same rate for every purchase. Tiered cards offer a different rewards rate for different categories of spending. Rotating category cards offer different rewards each quarter, determined by the card issuer. Choose-your-own category cards allow you to choose your rewards category.
To choose the best cash-back credit card for you, the most important thing is to have a clear idea of how you’re already spending money each month. Once you identify the categories where you have the highest, most consistent spending, use the charts in our list to determine which card will net you the highest return. Consider other features of the cards, too, such as APR, sign-on bonuses and foreign transaction fees. Make sure you get something that fits with your lifestyle and spending habits.
Your credit card choice may also be affected by your credit score. Most of the cards we recommend require a good or excellent credit score, which is typically around 670 or higher. If you don’t meet the credit criteria required, there are credit cards available that are specifically for those trying to rebuild credit, like secured credit cards. Alternatively, you can look into the best credit cards for no credit and the best credit cards for bad credit.
Cash-back credit cards are usually more straightforward to understand than points and miles systems because they can be easily translated to cash value. While more complicated, points and miles could offer a better redemption value in many cases, as the issuer may have established relationships with purveyors of travel and goods. Ultimately, the better option depends on your spending and lifestyle preferences, and how willing you are to deal with the process of redeeming your rewards.
