Chase Freedom Unlimited® Review: A Value-Packed Cash-Back Credit Card

Innovative sign-up bonus -- You'll receive 3% cash back on all first year purchases ($20,000 spending cap) and 1.5% back on all purchases above the cap.

Unlimited 1.5% cash back -- 1.5% cash back is just above table stakes for cash-back cards, but the flexibility of Chase’s rewards currency, Ultimate Rewards® points, makes that common cash back rate more enticing.

Ultimate Rewards® points flexibility -- Cash back is earned in the form of Ultimate Rewards® points that can be transferred to other Chase credit cards to increase the yield (more on that below) or redeemed for a handful of other alternatives, such as cash back, gift cards, and for Amazon or Apple purchases.

Note, the array of gift card redemption options should satisfy many consumers’ tastes but only a select few offer conversion better than $0.01 per point. The de facto conversion for the majority of gift cards is on par with cash back at $0.01 per point, which is the minimum value you should redeem for to stretch the value of your points.

$0 annual fee -- With thousands of credit cards available, card issuers must be competitive and one of the best ways to do so is by reducing fees, which Chase smartly did with this offer.

0% intro APR for purchases -- New purchases benefit from a 0% intro APR for 15 months, one of the longer offers out there for cash-back cards.

0% intro APR for balance transfers -- Balance transfers also receive the same 0% intro APR for 15 months for balance transfers.

Shop through Chase® -- You can start your purchase journey through Chase and be rewarded with up to 30% extra cash back. The rundown of partners is vast and covers many popular retailers.

Credit Journey -- Chase cardholders can monitor their credit score for free, which includes a Transunion credit score updated weekly. The service also offers a simulator to estimate how your credit score would change based on several common scenarios.

Balance-transfer fee -- Balance transfers incur a small fee. We’d suggest looking elsewhere for a balance transfer credit card if you’re wanting to avoid the fee.

Chase Freedom Unlimited® is designed for people with good credit and better, with a credit score of at least 670. That’s not to say applicants with lower scores can’t secure approval. In fact, some people have reported approval with a FICO score in the low to mid-600s. Credit scores are heavily weighted in the approval decision, but the reality is other factors also play a role.

As mentioned, credit scores are only one factor that inform an approval decision. Chase’s 5/24 rule is another important factor. If you have opened five or more credit cards in the past 24 months, then you won’t be approved for a Chase credit card. The 5/24 rule is meant to dissuade credit card churners from applying solely to take advantage of a sign-up bonus.

Chase Freedom Unlimited®’s sister card, Chase Freedom®, offers a similar deep bench of perks.

The main differences between the two offers is Chase Freedom®’s bonus rewards rate in rotating categories you activate quarterly and Chase Freedom® offers a flat cash bonus based when meeting the spend requirement.

Otherwise, the cards are practically twins and include the same $0 annual fee and 0% intro APR offer. Cardholders who can make the most of the quarterly bonus cash back categories will earn more with Chase Freedom®, so it’s worth crunching your budget numbers to nail down the right option.

As mentioned, the Ultimate Rewards® program’s versatility (namely, transferring points between Chase cards) makes Chase a slam dunk for many cardholders, including those who prefer to carry multiple cards to max their earnings. The following two Chase companion cards are commonly carried along with Chase Freedom Unlimited® to earn more rewards.

Chase Freedom® as a companion -- Recall, Chase Freedom® earns up to 5% in quarterly rotating categories and 1% on all other purchases whereas Chase Freedom Unlimited® earns 1.5% on all purchases. Especially in the first year, cardholders will amp up the rewards earned when placing bonus category purchases on Chase Freedom® while reserving all other purchases for Chase Freedom Unlimited® to earn 3% cash back in the first year.

Chase Sapphire Preferred® or Chase Sapphire Reserve® as a companion -- If travel rewards are your end goal, then carrying a Chase cash back and Chase travel card can make sense. That’s because rewards earned on Chase Freedom Unlimited® can be easily transferred to a Chase Sapphire Preferred® for 25% or a Chase Sapphire Reserve® for 50% more value (both, when redeemed through Chase’s travel portal). The fully-baked yield on your regular Chase Freedom Unlimited® purchases then increases to 1.875% or 2.25% for base rate 1.5% purchases and a whopping 3.75% or 4.5% for first year 3% purchases.

A word of caution if this strategy is enticing. Be sure you have your budget locked down so that you’re not racking up debt at double-digit interest rates for the sake of earning rewards at far lower rates. This is a money-losing proposition. Carrying multiple credit cards introduces complexity to your budget, so thinking through how to stay on track should be considered before diving in.

The online application process mirrors what other card issuers will require for a completed application, including the below.

• Name and address
• Employment, income, and housing type (rent vs. own)
• Phone, email address, and date of birth
• Social security number

Once this info has been collected Chase will instantly deliver a credit approval decision in the form of an approved or denied application or a request for more information to confirm details provided.