Chase Freedom Unlimited vs. Wells Fargo Active Cash Card: A Razor-Thin Win for Chase

If you're looking for a cash rewards card, the Chase Freedom Unlimited® and the Wells Fargo Active Cash® Card (see rates and fees) are two of the best options. The Chase Freedom Unlimited® earns a base rate of 1.5% back. It also has bonus categories where it earns 3% to 5% back.

The Wells Fargo Active Cash® Card doesn't have bonus categories, but it earns an unlimited 2% cash rewards on purchases. This is a close race, as both credit cards have similar perks. Keep reading to find out which card is right for you.

Most cash back cards make you choose between bonus categories or a high flat rate. With the Chase Freedom Unlimited®, you get both. It has a few bonus categories, and they're common places to spend money: dining, drugstores, and travel purchased through Chase Travel. On all your non-bonus spending, this card earns an unlimited 1.5% back.

If you go out to eat often or are a frequent traveler, this Chase card will probably be a match. It's also a versatile option. It works well in a one-card wallet, especially since the welcome bonus depends on how much you spend in the first year. If it's your only card, you'll be more likely to max out that welcome bonus. And it also works well in combination with other Chase cards.

Pro tip: Consider opening multiple Chase credit cards to get more value. Chase cards in the Ultimate Rewards program work well together, because you can combine rewards. For example, if you also have the Chase Sapphire Preferred® Card, you could move rewards there. This will unlock travel redemptions you wouldn't have with just the Chase Freedom Unlimited®. To learn more about this strategy, check out The Motley Fool's Ascent's guide to the Chase Trifecta.

The Wells Fargo Active Cash® Card is great if you want to keep it simple, while still getting plenty of value. It has a straightforward rewards program, earning an unlimited 2% cash rewards. There are no bonus categories to remember. This Wells Fargo credit card also doesn't require nearly as much spending for its welcome offer, which is nice if you aren't a big spender.

Now, we'll take a closer look at the key perks for these credit cards.

Chase Freedom Unlimited vs. Wells Fargo Active Cash Card annual fee

Either of these is an affordable option. They're both no annual fee cards, so you don't need to pay a fee to have them.

Winner: Tie

Chase Freedom Unlimited vs. Wells Fargo Active Cash Card welcome offer

With the welcome offer on the Chase Freedom Unlimited®, you can earn up to $300. Earn an extra 1.5% on everything you buy (on up to $20,000 spent in the first year) — worth up to $300 cash back. That's 6.5% on travel purchased through Chase Travel, 4.5% on dining and drugstores, and 3% on all other purchases. This is one of the largest welcome offers you'll find on a no annual fee card, but it also requires more spending than usual.

The Wells Fargo Active Cash® Card offers a $200 cash rewards welcome bonus for spending $500 on purchases in the first three months. It's not as valuable, but it only requires a small fraction of the spending. While both cards have good welcome offers, I give the slight edge to the one from Wells Fargo, because it's so much faster and easier to earn.

Winner: Wells Fargo Active Cash® Card

Chase Freedom Unlimited vs. Wells Fargo Active Cash Card intro APR

The Chase Freedom Unlimited® has a 0% intro APR for 15 months on purchases and balance transfers. Once the intro period ends, a 20.49% - 29.24% Variable APR applies. If you plan to make any balance transfers, the intro balance transfer fee is 3% ($5 minimum) for transfers made within 60 days of account opening. After that, the fee is: Either $5 or 5% of the amount of each transfer, whichever is greater.

The Wells Fargo Active Cash® Card also has a 0% intro APR for 15 months from account opening on purchases and qualifying balance transfers. After the intro period, a 20.24%, 25.24%, or 29.99% Variable APR APR applies. Balance transfers made within the first 120 days qualify for the intro APR and an intro balance transfer fee of 3% ($5 minimum). After that, the balance transfer fee goes up to 5%, min: $5.

Winner: Tie

Chase Freedom Unlimited vs. Wells Fargo Active Cash Card rewards

The Chase Freedom Unlimited® offers high cash back rates in bonus categories and on non-bonus spending. Here's how much it earns:

• 5% on travel purchased through Chase Travel
• 3% on dining at restaurants, which also includes takeout and eligible delivery services
• 3% on drugstore purchases
• 1.5% on other purchases

The Wells Fargo Active Cash® Card doesn't have any bonus categories. It earns 2% on purchases, no matter where you use it.

Both cards have fantastic rewards programs. Most people could get plenty of value with either one. The Chase Freedom Unlimited® just has a bit more to offer. It has bonus categories where people typically spend money every month in dining and drugstores, and it earns quite a bit on travel if you use Chase's booking portal. The deciding factor is that it offers all that and earns a respectable 1.5% everywhere else.

Winner: Chase Freedom Unlimited®

Pro tip: Check for special offers with the card you choose. Each card issuer has its own special offers hub, Chase Offers and My Wells Fargo Deals, where you can earn bonus rewards with select retailers. You can find these offer hubs in your online account or your card issuer's mobile app. Offers need to be activated to earn bonus rewards, so it's a good idea to review what's available regularly and activate any offers you think you could use.

These are both top credit cards, so you can't go wrong here. Between the two, I'd rank the Chase Freedom Unlimited® as ever-so-slightly better, thanks to its bonus categories and more potential value with its welcome offer.

The Wells Fargo Active Cash® Card has advantages of its own, including its high cash rewards rate and easy-to-earn welcome offer. It could be the right choice if you don't spend much in the bonus categories of the Chase Freedom Unlimited® -- or if you just prefer a 2% card.