Chase Freedom Unlimited Review: A No-Annual-Fee Powerhouse for Ultimate Rewards Fans

Chase Freedom Unlimited Benefits

Strong Earning Categories

The Chase Freedom Unlimited earns a minimum of 1.5% cash back on every purchase, which makes it one of the best cash-back credit cards right out of the gate. Most cards earn a base rate of 1% cash back, and you’d be surprised how valuable that extra 0.5% back can be over time, especially if you combine your earnings from this card with an annual-fee card that earns Ultimate Rewards points, since you’d be able to transfer points to Chase travel partners like World of Hyatt and United MileagePlus at a 1:1 ratio.

Even if you’re just using the Freedom Unlimited on its own, the bonus categories are quite strong. You’ll earn:

• 5% on travel purchased through Chase Travel
• 3% cash back on dining at restaurants, including takeout and eligible delivery services
• 3% on drugstore purchases
• 1.5% on all other purchases

There’s no minimum to redeem your points as cash back, and your rewards won’t expire as long as your account remains open and in good standing.

Welcome Bonus Worth $200

New cardholders can earn an intro bonus of $200 after spending $500 on purchases in the first three months from account opening.

That’s not the biggest bonus out there, especially compared to premium credit cards with high annual fees, but we like that the minimum spending requirement is relatively low. Note that cash back earnings from the Freedom Unlimited are actually issued as Chase Ultimate Rewards points, which you can redeem for cash back, travel booked through Chase, gift cards and other options.

Generous Intro APR Offer

If you’re looking for a card that gives you a grace period on paying interest, the Chase Freedom Unlimited is a solid option. New cardholders receive a 0% Intro APR on Purchases and Balance Transfers for 15 months, then 18.99% – 28.49% Variable.

Note that the card charges an intro balance transfer fee of either $5 or 3% of the amount transferred, whichever is greater, on transfers made within 60 days of account opening. After 60 days, the fee increases to $5 or 5% of the amount transferred, whichever is greater.

Travel and Purchase Protections

For a no-annual-fee card, the Freedom Unlimited offers a respectable range of travel insurance and purchase coverage, including:

• Car rental insurance: Use your card to pay for your rental and decline the agency’s collision damage waiver, and you can be covered for vehicle damage due to theft or collision. Coverage is secondary in the US, primary otherwise.
• Trip cancellation/interruption insurance: When you use your card to pay for travel, you can be reimbursed up to $1,500 per covered traveler and $6,000 per trip for prepaid, nonrefundable fares if your trip is cut short or canceled for a qualifying reason.
• Travel and emergency assistance: Cardholders can access a hotline to call if they’re traveling and need help arranging things like translation services or medical/legal referrals. The service itself is free, but any third-party costs are the responsibility of the cardholder.
• Purchase protection: If an eligible item you bought with your card is damaged or stolen within 120 days of purchase, you could be reimbursed up to $500 per item.
• Extended warranty: This perk extends the time period of eligible US manufacturers’ warranties by an additional year, on warranties of three years or less, when you use your card to pay for the purchase.

Chase Freedom Unlimited Drawbacks

Foreign Transaction Fee

The Chase Freedom Unlimited charges a ​​foreign transaction fee of 3% of the amount of each transaction in US dollars. This means you should keep the card at home anytime you travel abroad and pack a card with no foreign transaction fees instead. It’s a drawback, but it’s hard to knock the card for this too much, as foreign transaction fees are especially common on no-annual-fee credit cards.

Requires Good to Excellent Credit

Another potential disadvantage of the Freedom Unlimited is that it may be less attainable than some other cash-back cards. To qualify, you’ll generally need a credit score in the good to excellent range (670 to 850 on FICO’s scale).

Highest Earning Rate Is for Chase Travel

This final drawback is less of a dealbreaker and more of a scream into the void from a points and miles devotee who’s been shaking her fist at such minutiae for over a decade. I don’t love that the Freedom Unlimited’s highest cash back category is 5% for travel booked through Chase Travel. It’s not a bad thing, per se — if you don’t have another Chase card and you want to book flights or hotels through Chase’s portal, you’ll be handsomely rewarded — but it’s a departure from the other bonus categories, which generally reward more everyday spending (at drugstores and restaurants).

If you want to book travel, whether through Chase or directly with an airline or hotel, it’s worth considering other top Chase credit cards, since some options will earn you similar or higher points multipliers on your bookings, and you’ll get more extensive travel protections like baggage and trip delay insurance.

Who Is the Chase Freedom Unlimited Best For?

Several Chase Freedom Unlimited benefits make this card an ideal pick, especially for those who want to earn a solid rate of cash back while using just one card. Earning a minimum of 1.5% back on every purchase (or more on the bonus categories) is great, especially considering there’s no annual fee.

This card is also a stellar option for those who also have the Chase Sapphire Preferred Card or Chase Sapphire Reserve®, since these cards can boost your points earnings in other categories.

I have the Sapphire Reserve and use it frequently to earn 4x points on flights and hotels booked directly, but I always switch over to the Freedom Unlimited when I pop into CVS, or when I’m purchasing something that won’t qualify for a bonus earning rate on any other of my cards. I’m all-in on Chase Ultimate Rewards points — I most recently used them to book a week’s worth of hotels and two business-class flights to Japan — so I seize any opportunity to replenish my stash.

Is It the Right Card for You?

The Chase Freedom Unlimited could be right for you if any of the following apply:

• You want to earn cash back with no annual fee
• You’re looking for an intro APR offer for both purchases and balance transfers
• You already have a Chase Ultimate Rewards-earning card and want to further boost your earnings

Alternatives to the Chase Freedom Unlimited

If you’re not sold on the Chase Freedom Unlimited, consider these two competitors instead:

• Wells Fargo Active Cash® Card: The Active Cash Card has no annual fee and also offers an intro APR period (0% intro APR for 12 months from account opening on purchases and qualifying balance transfers, then a 18.99%, 23.99%, or 28.99% Variable APR). It earns an unlimited 2% cash rewards on purchases. If you don’t want to keep track of bonus categories, this is an easy, straightforward option.
• Citi Double Cash® Card: The Citi Double Cash Card, an advertising partner, is another no-annual-fee pick that keeps things simple. You’ll earn a total of 2% cash back (1% when you make a purchase, and 1% when you pay it off). Rewards are issued as Citi ThankYou® points, which you can redeem for cash back, use to book travel through Citi, or transfer to Citi’s airline and hotel partners, among other options.