Chase has rolled out a new offer on the no annual fee Chase Freedom Unlimited® that could make it one of the best cards for earning Chase Ultimate Rewards points or cashback on your everyday spending.
The Chase Freedom Unlimited can now earn 3% cashback (or 3x Ultimate Rewards points!) on all spending up to $20,000 in the first year of card membership. That's an additional $300 cashback – or 30,000 Chase Ultimate Rewards points. That means you can earn at least $600 cashback (or 60,000 Chase points) if you spend $20,000 in the first year.
Click Here to learn more about the Chase Freedom Unlimited Card
Even better, this additional 1.5% cashback is available on the spending categories that already earn bonus cash back (or Chase Ultimate Rewards points) on the card. With that in mind, it works out to:
- Earn 6.5% cash back on travel purchased through the Chase Travel Portal
- Earn 4.5% cash back on drugstore purchases and dining at restaurants, including takeout and eligible delivery service,
- Earn 3% on all other purchases (on up to $20,000 spent in the first year).
After your first year or $20,000 spent, you'll ear the standard 5% cashback on travel purchased through the Chase Travel Portal, 3% cashback on drugstore purchases and dining at restaurants (including takeout and eligible delivery service), and unlimited 1.5% cashback on all other purchases.
Benefits of the Chase Freedom Unlimited Card
Sign-Up Bonus Offer
Double Cash Back: Earn an additional 1.5% cashback in all spending categories (or 1.5x Ultimate Rewards points, if you've got a card that earns points like the Chase Sapphire Preferred® Card or Chase Sapphire Reserve® on all purchases in your first year up to $20,000 spent.
- Earn 6.5% cash back on travel purchased through the Chase Travel Portal
- Earn 4.5% cash back on drugstore purchases and dining at restaurants, including takeout and eligible delivery service,
- Earn 3% on all other purchases (on up to $20,000 spent in the first year).
Annual Fee
The Chase Freedom Unlimited card does not have an annual fee, making it a great companion product to either the Chase Sapphire Preferred or the Chase Sapphire Reserve.
Chase 5/24 Rule
The card is subjected to the Chase 5/24 rule, so that is something you will need to consider before applying. Also, you won't be eligible to apply if you have received a new card member bonus on the Freedom Unlimited in the past 24 months.
Click Here to learn more about the Chase Freedom Unlimited Card
Our Analysis
The Chase Freedom Unlimited Card is one of our favorite no-annual fee credit cards.
Not only does it earn competitive cashback rates, but it also becomes much more valuable when you pair it with either the Chase Sapphire Preferred or the Chase Sapphire Reserve. That's because you can actually convert the cashback the cards earn into Chase Ultimate Rewards points to be used for travel redemptions.
With this new offer to earn 3% cashback for the first $20,000 spent on the card annually, it's possible to earn up to $600 cash back in the first year.
If you hold an Ultimate Rewards earning credit card, the cashback could then be transferred and turned into 60,000 Ultimate Rewards points. If you're looking to earn more Chase points, this could be a great way to do so.
Because Ultimate Rewards points redeem at either 1.25 or 1.5 cents each depending on which card you have, these 60,000 points could be redeemed for $750 to $900 towards travel – not bad for a no annual fee card.
Even if you don't want to transfer the cashback into your Chase Ultimate Rewards balance, the 3% cashback return is still very attractive and one of the most competitive cashback offers out there.
Bottom Line
This new offer on the Chase Freedom Unlimited card is solid. While you won't earn a sign-up bonus for a certain amount of spending in the first three months, it is a great candidate to earn your everyday spending at at least 3% cashback, and potentially more depending on the spending category.
Click Here to learn more about the Chase Freedom Unlimited Card.
Please clarify, 3% earned only the first year? Then it reverts to 1.5%?
Please clarify, 3% earned only the first year? Then it reverts to 1.5%?
Is the 3% only for new card holders?
What about exiting? Still the 1.5%?
Correct, only for new cardholders. Existing cardholders will still get 1.5% back.