Chase Freedom Unlimited: a review

An overview

The USP of the Chase Freedom card is that it does not have an annual fee and that it carries a fixed 1.5% return on all purchase. This means cardholders do not need to keep track of bonus categories as is the case with many other cards. By pairing with a card that attracts Chase Ultimate Rewards points, you can convert into fully transferable points, increasing their value. 

Yet there is more to this card than the traditional ($200) sign-up bonus, cash-back and no bonus categories. Let’s take a closer look.

Who is this card aimed at?

If you are new to travel cards (i.e. points and miles bonuses awarded after spending on a particular card), this can be a great introduction. Approval is relatively simple and it begins the process of building a relationship with the bank, allowing you to access some of the firm’s more valuable cards.

There are no annual fees: meaning you can keep the card without ever paying an annual fee. Moreover, rewards earned with the card never expire for as long as you keep it open. The card extends warranty protections for eligible manufacturers by an additional year and offers 120-day purchase protection.

Remember, as with all Chase cards, the Chase Freedom Unlimited card is subject to the bank’s 5/24 rule: meaning applications from individuals who have opened five or more cards in the past 24 months are automatically rejected. 

Importantly, this card is a great way to take advantage of perks that are not included in the bonus categories of other cards you might hold. It is therefore a great option for everyday spending.

Sign-up bonus

$200 after spending $500 within the first three months.

Bear in mind that cashback earned on this card can be transferred into Chase Ultimate Rewards points. With particular cards, such as the Chase Sapphire Preferred, this $200 cashback can be transferred into points which can be used in the Ultimate Rewards portal. These are worth up to $400 according to recent estimates, doubling the bonus value. This makes the bonus seem more generous than at first glance.

Perks and Benefits

Given it is a card which carries no-annual fee, it does not offer many additional perks and benefits. However, the following are some nice features of the card:

• 0% introductory APR for the first 15 months on purchases. After this period of time, the normal 14.99%-23.74% applies.
• Purchase protection on new purchases for 120 days against damage or theft, limited to $500 per claim or $50,000 per account.
• Extends eligible warranties of three years of less by an additional year. 
• It is contactless.
• If you experience problems away from home, the travel and emergency assistance that comes with the card can arrange legal, medical or other travel and emergency assistance on your behalf. Note: you will still be financially liable for any expenses associated with these goods.
• Roadside assistance that may dispatch help on your behalf. Again note: you will still be financially liable for the sourced services. 

The card also carries a 3% foreign transaction fee so is not the optimal choice for travelling abroad. 

Earning

Given the card earns a flat rate 1.5% cashback on all purchases, you do not have to track purchases. Furthermore,  there are no limits or caps on this cashback. 

Bonus alert! As a result of Chase’s partnership with Lyft, you can earn 5% on Lyft rides paid for using the card. If transferred to an Ultimate Rewards card, this can significantlyincrease the value of this cashback.

Note: there are cards on the market which offer a higher rate of flat-rate cashback, such as the Citi Double Cash Card. 

Redeeming

You can redeem any points earned on the card as statement credit and direct deposit into many U.S. checking and saving accounts, either via the Ultimate Rewards portal or for shopping at large merchants, such as Amazon.com.

However, as previously mentioned, if you combine the card with another Chase card, such as the Sapphire Reserve, you will substantially increase the return on your cashback. 

Furthermore, by transferring points to Chase’s airline and hotel partners, such as Lufthansa, you will have access to major high-end redemptions online. 

Our take

The Chase Freedom Unlimited card is a great option for those who want an easy life. It offers a flat-rate of cashback and is a great option for everyday spending. If paired with one of Chase’s premium cards, such as the Chase Sapphire Reserve card, this cashback can be enhanced, making it a very attractive option for many client demographics.