Chase Freedom Unlimited Credit Card Review

By | August 21, 2021

The Chase Freedom Unlimited Credit Card offers a compelling combination of valuable rewards, flexible redemption options, a lengthy 0% introductory APR for some time, and a sign-up bonus that is worth much more than most cashback cards offer — while not charging you an annual fee.

The card offers you some of the most generous cashback rewards like 3% Cashback on Restaurants and drugstores, a 5% Cashback reward on travel booked through Chase, and 1.5% Cashback on other purchases. As put together, you’ve got a card that will really compile the cashback. If you carry other credit cards that also earn Chase Ultimate Reward Points, it even offers you a better value.

Table of Contents

  1. Fees
  2. Benefits
  3. Additional Perks
  4. Drawbacks of this card
  5. Best Alternatives
  6. Odds of Approval
  7. Bottom-Line
Chase Freedom Unlimited Credit Card
Chase Freedom Unlimited Credit Card Image Credit : Chase Credit card

Chase freedom unlimited Fees

TypesAmount
Joining Fees$0
Annual Fees$0
Balance Transfer feesEither $5 or 5% of the total amount of each transfer, whichever is excellent.
Foreign Transaction Fees3% of each transaction
Intro APR0% applicable for the first 15 months.
Regular APRVariable APR is applicable (ranging from 14.99%-23.74%)
Cash advance rate24.99% variable
No Interest PeriodUp to 21 days
Late payment feeUp to $40.
Returned payment feeUp to $40
Additional cardholder fee$0
Terms and ConditionRead here
Chase Freedom Charges Table

Chase freedom unlimited have a no interest for 15 months as a Intro APR, however your introductory APR will end  if any required Minimum Payment is 60 days late, and they will also apply the Penalty APR, that may cost you Up to 29.99%

Benefits of The Chase Freedom Unlimited Credit Card

Welcome bonus

Freedom Unlimited gives you the opportunity to earn a Cashback of $200 Bonus after spending $500 on purchases in your first 3 months from account opening. And make a 5% cashback on grocery purchases (Walmart, Target) on up to $12,000 spent in the first year.

Lucrative Cashback Offers

There is a wide range of lucrative Cashback Rewards that are offered to the cardholders of Chase Freedom Unlimited Credit Card. Here’s a list of Cashback Rewards.

  • Earn 5% Cashback on travel purchases in the form of Chase Ultimate Rewards.
  • Earn 5% Cashback on Lyft rides till March 2022.
  • Earn 3% Cashback on Drugstore Purchases and Dine-in at Restaurants.
  • Earn 1.5% on all other expenses.

Point Transfers to Maximize Value

Since Chase allows you to transfer Ultimate Chase Reward points earned by you, it can be the foundation of a strategy to maximize the value of each dollar spent by you.

If you have multiple Chase cards, you can earn more points by splitting your spending among this card and the Chase Freedom Flex.

You can get more value per point by splitting your spending between this card and the Chase Freedom Flex.

No Annual Fee

Chase Freedom Unlimited Credit Card does not charge you an Annual Fee, thereby eliminating the Cost of Entry into its privileged customers base.

0% Intro APR is Applicable

The Chase Freedom Unlimited Credit Card gives you a great break from interest for 15 months, making this card more useful. The card does not charge you any penny for Introductory APR for 15 months. After that, it charges you the regular APR, which is variable, ranging from 14.99%-23.74%.

Additional Perks

DashPass

Cardholders can activate and receive complimentary DoorDash DashPass for the first three months of account opening, followed by a 50% discount price at the present rate for the subsequent nine months.

Purchase Protection

Purchase Protection Covers your new purchases for 120 days against damage or theft up to $500 per claim and $50,000 per account.

Extended Warranty Protection

Extends the U.S. manufacturer’s warranty period by an additional year on eligible warranties of three years or less.

Auto Rental Collision Damage Waiver

Cardholders receive coverage for damage occurring due to Theft or Collision. For Activation, complete the entire rental transaction using your eligible Visa Card and decline the rental company’s coverage.

Drawbacks of Chase Freedom Unlimited Credit Card

  1. 3% Foreign Transaction Fee Applicable
  2. Complicated Cashback Rewards

The 1.5% flat rate is straightforward enough to know, but the combination of various reward rates in spending categories can be head-spinning — especially for cashback lovers who appreciate simplicity. Wells Fargo can be a better option in such a scenario that offers you a Cashback Reward of 2% on all categories.

  1. Better Cashback Offered by Competitors

The Bank of America Custom Cash Card offers you the flexibility to choose categories on your own to avail yourself of a Cashback Reward of 3%. It includes a wide range of categories like Gas, Online Shopping, Dining, Travel, Drugstores, Home Improvements.

Similarly, it offers a 2% Cashback Reward at Grocery Stores and Wholesale Clubs, up to $2,500 in combined choice category/ grocery/ wholesale club spending per quarter. All other spending earns 1% Cashback.

Best Alternatives of Chase Freedom Unlimited Credit Card

Citi Double Cash Card

If you’re checking out a simple rewards card without an annual fee, consider the Citi Double Cash Card, which offers 2% cashback consistently on all purchases—1% back once you make the purchase and another 1% once you pay your bill.

There are no categories to trace, and it’s an equivalent earnings rate on everything you purchase. Like the Chase Freedom Unlimited, you can also combine the Citi Double Cash Card rewards with another premium Citi card for a potential increase in points value.

Bank of America Custom Cash Card

The Bank of America Customized Cash Rewards earns 3% cashback within the category of your choice from the following options: gas, online shopping, dining, travel, drug stores or home improvement/furnishings.

2% cashback at grocery stores and wholesale clubs, and a limitless 1% cashback on all other purchases (on the first $2,500 in combined choice category/grocery store/wholesale club purchases each quarter).

Wells Fargo Active Cash Credit Card

Wells Fargo Active Cash Card offers you a welcome bonus of $200 if you make purchases worth $1,000 using Wells Fargo Active Card within three months of account opening.

Moreover, it offers an unlimited 2% Cashback reward as you make a purchase, which is consistent across all the categories.

Quick Comparison of above three Cards

Fees & RatesChase Freedom Unlimited Credit CardWells Fargo Active Cash CardCiti Double Cash CardBank of America Custom Cash
Welcome Bonus/Sign-up Bonus$200 Cash Rewards Bonus on purchases worth $500 made within first 3 months of Account Opening$200 Cash Rewards bonus after spending $1,000 on purchases in your first 3 months from Account Opening.NoneNone
Cashback RewardsVariable cashback of 5% for travel, 3% for Dine-in, Drugstores, 1.5% on other purchases2% Cashback after the purchase2% total Cashback (1% as you buy and 1% as you pay)3% cashback
Intro APR0% 0% 0%0%
Regular APRVariable 14.99%-23.74%Variable 14.99%-24.99%Variable 13.99%-23.99% Variable 13.99%-23.99%
Annual FeeNilNilNilNil
Foreign Transaction Fees3%3%3%3%

Chase Freedom Unlimited Credit Card Vs. Wells Fargo

Both Chase Freedom Unlimited & Wells Fargo Active Card offer you a welcome bonus of $200. However, Chase Freedom requires you to spend lesser, i.e., $500, to avail welcome bonus as compared to Wells Fargo, which has a minimum requirement of $1000.

Chase offers you variable cashback rewards depending upon the purpose of expenses (as it offers 5% Cashback for Travel, 3% Cashback for Dine-in & Drugstores, 1.5% for all other purchases). However, Wells Fargo Active Cash Card offers you a static 2% Cashback Reward.

Chase Freedom Unlimited Credit Card Vs. Citi Double

Chase Freedom has the upper hand in this comparison since it offers you a Welcome Bonus of $200 after making purchases worth $500 using a Chase card, while Citi Double doesn’t offer you a Welcome Bonus.

Chase Freedom gives you Cashback Rewards in a Variable Range (5% for Travel Purposes, 3% Cashback at Restaurants & Drugstores, 1.5% for other purchases), which can be a good deal for you if you are a travel bug, or a foodie, or for general expenses.

However, suppose you prefer keeping these things simple and easy and don’t want to get into the calculation involved in different purchases with different Cashback Rates. In that case, Citi Double might be a good deal for you.

Chase Freedom Unlimited Credit Card vs. Bank of America Custom Card

In this comparison, Chase Freedom has the upper hand due to the welcome bonus offered by Bank of America. However, a flat-rate cashback of 3% can be considered an advantage for Bank of America, which keeps things consistent and straightforward for those who don’t want to calculate cashback while swapping the category.

An added advantage for Bank of America is the leverage to swap 3% categories, which is subjected to customer’s choice.

How to redeem the Cashback rewards of Chase Freedom Unlimited Credit Card ?

Cashback rewards can be redeemed in the following forms:

Statement Credit.

  • Direct Deposit into most U.S. checking and savings accounts
  • Ultimate Reward Portal for Travel Purposes.
  • Shopping at Amazon.com or buying gift cards.

Odds of Approval Chase Freedom Unlimited Credit Card

Odds of Approval are favorable for the people with a good to excellent Credit Score ( 690 or above). However, it should be noted that Credit Score alone isn’t enough to qualify for any credit card. Issuers also take into account your income, existing debt, and other relevant information.

Bottom-line: Is Chase Freedom the best credit card to go for?

Chase Freedom Unlimited Credit Card Review
Chase Freedom Unlimited Credit Card

The Chase Freedom Unlimited Credit Card is the best card in its segment if you are a travel bug or a big foodie due to the comparatively higher cashback reward offered compared to most of its competitors.

Editor's Rating:
4.2

Another reason why it is the best credit for you is the welcome bonus offered to the new cardholders with the comparatively lesser amount to be spent to avail of the welcome bonus. For instance, Chase Freedom offers you a welcome bonus of $200 with a minimum expenditure of $500 made in the same quarter.

Wells Fargo, however, offers you a welcome bonus of $200 with minimum spending of $1,000.

However, the primary reason you should not go for Chase Freedom Unlimited Credit Card is its variable rate, which can be an issue for someone who prefers keeping things simple and doesn’t want to calculate Cashback Rewards while swapping categories.

For such people, Citi Double and Wells Fargo can be some good options to consider as they offer a flat-rate Cashback reward of 2%.

But Bank of America can be a better option since it offers a flat-rate Cashback reward of 3% while giving the customers the leverage to choose a 3% Cashback category.

Do you have Chase Freedom Unlimited Credit Card ? Share your experience in the comment box below.

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