Chase Freedom Unlimited®

The Chase Freedom Unlimited® is a popular cash-back rewards card that offers flexible rewards and no annual fee. It’s well-suited for those who want a simple way to earn cash back on every purchase, plus a few bonus categories. Here’s a detailed overview of its features and benefits:

Key Features of Chase Freedom Unlimited®

1. Cash Back Rewards:

• Unlimited 1.5% Cash Back on Every Purchase:
  • You earn 1.5% cash back on all purchases, with no spending limits or categories to track.
  • Tip: This makes it easy to earn consistent rewards without worrying about category bonuses or caps.
• 5% Cash Back on Travel Purchased Through Chase Ultimate Rewards®:
  • When booking travel (like flights, hotels, and car rentals) through the Chase Ultimate Rewards portal, you’ll earn 5% cash back.
  • Tip: Use this portal for your travel purchases to maximize your rewards, as it’s competitive with some travel cards.
• 3% Cash Back on Dining and Drugstore Purchases:
  • Earn 3% cash back on purchases at restaurants (including takeout and eligible delivery services) and drugstores.
  • Tip: If you spend a lot on dining out or need to buy medications, this category can add up quickly.

2. Introductory Offer:

• $200 Bonus after spending $500 on purchases in the first 3 months from account opening.
  • This is a relatively easy spending threshold compared to many other cards, making it accessible to most new cardholders.
• 5% Cash Back on Grocery Store Purchases (excluding Target and Walmart) on up to $12,000 spent in the first year.
  • Tip: If you’re a heavy grocery shopper, this can be a huge value in the first year, with a potential $600 in cash back.

3. No Annual Fee:

• $0 annual fee, so you can keep the card without worrying about having to cover a yearly cost.

4. 0% Intro APR:

• 0% Intro APR on purchases and balance transfers for the first 15 months from account opening.
• After that, a variable APR applies (based on creditworthiness).
• Tip: This is useful if you plan on making a large purchase or need to transfer a balance from a higher-interest card.

5. Chase Ultimate Rewards® Program:

• Redeeming Points: Cash back rewards are earned as Chase Ultimate Rewards® points, which can be redeemed for cash back, gift cards, travel, or through the Amazon and Apple Ultimate Rewards programs.
• Tip: If you hold other Chase cards, such as the Chase Sapphire Preferred® or Chase Sapphire Reserve®, you can combine points and transfer them to travel partners like airlines and hotels, potentially increasing the value of your points.

6. Purchase and Travel Protections:

• Purchase Protection: Covers new purchases against damage or theft for 120 days (up to $500 per claim and $50,000 per account).
• Extended Warranty Protection: Extends the U.S. manufacturer’s warranty by an additional year on eligible warranties of three years or less.
• Trip Cancellation/Interruption Insurance: If your trip is canceled or cut short by covered situations like sickness or severe weather, you can be reimbursed up to $1,500 per person and $6,000 per trip for prepaid, non-refundable travel expenses.
• Auto Rental Collision Damage Waiver: Provides coverage for damage due to theft or collision when renting a car and declining the rental company’s insurance.

Pros of Chase Freedom Unlimited®:

1. Flat 1.5% Cash Back on All Purchases: You don’t have to worry about rotating categories or activating bonus offers. Every purchase earns at least 1.5% cash back.
2. Bonus Categories: The 5% on travel, 3% on dining, and 3% on drugstore purchases give you opportunities to earn more in frequently used categories.
3. No Annual Fee: It’s easy to keep in your wallet, and you won’t need to worry about fees eating into your rewards.
4. Flexible Redemption Options: Points can be redeemed for cash, gift cards, travel, or used at Amazon, giving you a variety of ways to use your rewards.
5. Generous Introductory Offer: The 5% cash back on groceries in the first year is especially valuable for those with high grocery spending.

Cons to Consider:

1. Foreign Transaction Fee: The card charges a 3% foreign transaction fee on purchases made abroad, so it’s not ideal for international travel.
2. No Category Customization: While the bonus categories on travel, dining, and drugstores are generous, there’s no option to customize categories based on your spending habits. Other cards might offer 2% or 3% cash back in more categories.
3. Better Cards for Big Spenders: For those who travel extensively or have significant grocery or gas expenses, a card with higher bonuses in those specific categories (e.g., Chase Sapphire Preferred or Amex Blue Cash Preferred) might offer more value.

Who Should Get the Chase Freedom Unlimited®?

• Everyday Shoppers: If you prefer simplicity, the flat 1.5% cash back on all purchases makes it easy to earn rewards without thinking about categories.
• Frequent Travelers: The 5% back on travel through Chase Ultimate Rewards is an attractive offer for travelers who don’t want to pay an annual fee.
• Dining and Drugstore Spenders: The 3% back in these categories adds a lot of value if these are part of your regular budget.
• Chase Ecosystem Users: If you have other Chase cards (especially the Sapphire series), you can maximize your rewards by combining points across your Chase accounts, making your cash back more versatile.