Chase Freedom vs. Chase Freedom Unlimited: Is it Worth the Switch?

Chase Freedom vs. Chase Freedom Unlimited: Is it Worth the Switch?

The Chase Freedom and Chase Freedom Unlimited cards are both great for generating bonus rewards on your spending, that is, if you have the financial history that gets you in the door. Both cards are noted for requiring a good credit score and a strong credit history, but nevertheless they offer attractive terms for consumers looking to pay down debt and accumulate points that can make their spending more affordable.

The Similarities

Balance Transfer and Fees

Both the Chase Freedom card and the Chase Freedom Unlimited card can be used as balance transfer cards. Each offers a 15 month grace period with a 0% APR rate on balance transfers and purchases, after which they both have a variable APR range from 14.99%-23.74%. Furthermore, in the process of transferring one’s balance, each card has a transaction fee of  5%, or $5, whichever is greater. The same parity applies to cash advances (24.99% APR), cash advance fees (10% or $10) and late payment fees ($39). So, in both the short term and the long term, with both cash and debt, both cards offer the same deals when it comes to financing.

Partnerships and Reward Spending

No matter which Chase Freedom card you choose, you will benefit from some outstanding discounts with popular services. When you sign up, you are complemented with 3 months of DashPass for DoorDash completely free, then having 9 months of DashPass for 50% off. For those unacquainted, DashPass is a subscription that allows you to get delivery from local restaurants, free of delivery charge. So, for those who frequently order in, this deal really sweetens the pot. Furthermore, both sets of subscribers earn cash back on Lyft rides. Though they do not earn equal amounts (4% for Chase Freedom and 3.5% for Chase Freedom Unlimited), this is another form of repayment that can benefit those who rely on rideshares.

Additionally, both cards offer a broad and flexible portfolio of products for you to redeem the points that you accumulate. You can trade in points for cash directly transferred to your account, or you could link your Chase account directly to your Amazon account to redeem rewards during the checkout process. Alternatively, you can trade in your points for travel packages or gift cards for a variety of industries. If you choose a Chase Freedom card, you will not have to worry about being pigeonholed into using it in one area or another—it is what you make of it.

The Differences

Cash Back

The main, impactful contrast between the 2 cards is the difference in cash back rewards policies between Chase Freedom and Chase Freedom Unlimited. Chase Freedom Unlimited is actually much more straightforward than Chase Freedom, offering an unlimited 1.5% cash back on any and all purchases made with the card. Chase Freedom, on the other hand, has the “cash back calendar,” when each quarter, the company singles out a handful of industries where they offer 5% cash back on a customer’s first $1,500 in purchases, and then 1% cash back in all other purchases across the board. Most recently, from April to June, Chase Freedom enrollees were awarded with 5% cash back on the money that they spent at grocery stores (excluding Target and Walmart), on streaming services and on fitness clubs. For more perspective, the deals from January to March were on gas, internet, cable and streaming services. 

Both Chase Freedom and Chase Freedom Unlimited are generous in giving cash back. Each card grants $200 in a bonus offering when customers spend $500 in the first 3 months, and as long as one keeps their account open, their cash rewards will never expire. However, they reward your purchases in very different ways, and as such can result in radically varied user experiences.

The Verdict

As with many subjective questions, the answer to “Is it worth it?” is predictably “It depends.” For somebody without a car or cable, January to March would not have been a great month for cash rewards with Chase Freedom. However, if they bought groceries frequently and were on the fence about joining a gym, then April to June would have been fantastic. If you are a person with a steady reliance on commonly discounted items, then the Chase Freedom Unlimited card is likely more beneficial. If you are a parent that has to pay for gas, groceries, medications, cable, internet, phone, Netflix, and the gym, it might be more beneficial to receive 1.5% cash back across the board, rather than 5% cash back on some of your purchases (and only up to $1,500, as well). Of course, you should use your discretion about the nature of your lifestyle, as there is a lot to consider; ultimately, either card is a great way to earn cash rewards sustainably.