Chase Freedom Unlimited - 2019 Deep Dive Review
Chase Freedom Unlimited
The Chase Freedom Unlimited at the Wynwood Walls in Miami, Florida.
Key Benefits
The workhorse of the Chase Ultimate Rewards Ecosystem
3% cash back or 3x UR points on all purchases in the first year up to $20,000
Unlimited 1.5% cash back or 1.5 UR points after the first year on all purchase
Travel and Delay Coverage
No Annual Fee
To the Point
At first glance the Chase Freedom Unlimited, or "CFU", may appear to be a mundane cash back card, but within this article we will deep dive into exactly why the Chase Freedom Unlimited deserves a permanent slot at the top of your wallet whether you are a seasoned points enthusiasts or getting your very first credit card. First, the Chase Freedom Unlimited has no annual fee which means when you get this card, you can keep it indefinitely, without having to worry about adding another annual fee to your expenses. Credit history is a key factor of how credit scores are calculated, therefore having a no annual fee card that you can keep forever can be a very useful tool to help you build and maintain a healthy credit score. Second, the Chase Freedom Unlimited has no specific reward categories, so you will be earning rewards on every single dollar spent, care free. Third, this no annual fee Chase Freedom Unlimited credit card surprisingly has travel and delay coverage!
The Chase Freedom Unlimited’s new sign-up bonus is structured to reward you for spending on your card throughout the first year. The first year you will earn 3% or 3x Ultimate Rewards (UR) for every dollar spent, which is huge for non category spending. We value this sign up offer at $1200 if redeemed strategically, which we explain below! After the first year, the Chase Freedom Unlimited continues to earn cash back at a rate of 1.5% or 1.5x Ultimate Rewards, which can bring additional value when paired with either the Chase Sapphire Preferred or the Chase Sapphire Reserve cards, which increase the redemption rate to 1.25% or 1.5%, respectively. Is the Chase Freedom Unlimited for you? Keep reading and lets find out!
Interested in applying? Click here to apply for the Chase Freedom Unlimited and get a sign up bonus we value at $1200!
Why the Chase Freedom Unlimited is Unique
The reason we call the Chase Freedom Unlimited the “Chase workhorse” is because it’s the perfect catch all card for everyday spending within the Chase Ultimate Reward points ecosystem. In Spring 2019, Chase released a new sign up bonus for the Chase Freedom Unlimited. The new sign up bonus was not a typical lump sum of points, but an increase in rewards earning to 3% cash back or 3x Ultimate Reward points (UR) per dollar spent within the first year or up to $20,000 in spending, whichever comes first. Just to clear things up, the card holder decides whether they want to redeem their rewards in cash or points. After the first year, or $20,000 spend, your rewards earning rate will drop to an unlimited 1.5% cash back or 1.5x UR per dollar spent. Even after the first year, this 1.5x/$1 earning rate is still better than most premium cards because of the Chase Freedom Unlimited's unlimited and non-category specific rewards earnings. With the Chase Freedom Unlimited's new sign up bonus, in the first year you will double your rewards return if you can reach the $20,000 in spend. This $20,000 spend will net you up to 60,000 UR points, which are worth $600 in the Chase Ultimate Reward portal at face value, $750 when transferred to the Chase Sapphire Preferred, and $900 when transferred to the Chase Sapphire Reserve. Even higher values are possible when transferring the Ultimate Rewards points to travel partners, which is why we value at $1,200, as we’re frequently able to derive a value from Chase Ultimate Rewards points of $0.02 or greater using this strategy. Another way to look at this new sign up bonus is that you can earn 60,000 UR with a minimum spend of $20,000, but you have an entire 12 months to achieve it. Ultimately, we think Chase may be tipping their hat to the new direction for sign-up bonuses. By encouraging card holders to earn their sign-up bonus throughout the entire year instead of after the typical first three months, they help reduce the number of people “card churning” (people who get a card just for the bonus, and then cancel before the next annual fee). That being said, a “60,000 Chase Ultimate Reward sign-up” bonus is HUGE for a no annual fee card. To put that into perspective, the Chase Sapphire Preferred has a 60,000 Chase Ultimate Reward sign-up bonus and $95 annual fee, and the Chase Sapphire Reserve only has a 50,000 Chase Ultimate Reward sign-up bonus but carries a $450 annual fee. So that’s where the Chase Freedom Unlimited’s sign-up bonus shines, with the only catch that you’ll have to run $20,000 or $1,667 per month through the card in the first year to maximize the value.
The Chase Freedom Unlimited can be the perfect card to grab before planning any large expenses, such as a wedding or home renovation. On top of this shiny 60,000 Ultimate Rewards points, the sign up offer provides a 0% APR interest rate on the first 15 months after card opening. Essentially the Chase Freedom Unlimited offers you an interest free loan AND 3x Ultimate Rewards on all purchases. Again, this makes this card perfect for something like a home renovations because you can invest your $20,000 budget that you want to spend with a high yield savings account at roughly 2% interest. With this savings account, over the first 15 month, and the 0% APR interest introductory period, you could potentially earn $500 in interest, plus 60,000 Ultimate Rewards via the Chase Sapphire Reserve redemption rate equaling $900. If we add the high yield savings account interest of $500 to the 60,000 Ultimate Rewards sign up valued at the Chase Sapphire Reserves redemption rate of 50% more, which is a guaranteed redemption rate of $900. With this optimization strategy it’s entirely possible to get a total of $1,400 in value in a 15 month period on this no annual fee card!
Travel protections on a no-annual fee card? That’s right, it’s super surprising. Chase offers it’s Freedom Unlimited card members travel coverage, which is otherwise unheard of, and one of the few, if not the only no-annual fee cards, offering this right now. If you, or your travel companion, book a flight on your Chase Freedom Unlimited and become sick, or weather delays your return home, Chase will cover losses and certain fees that you may have incurred due to the delay or cancellation. Chase will cover up to $1,500 per passenger and $6,000 per trip respectively. This may not seem valuable now, but if you get stuck an extra night due to rough weather and need a last minute hotel and meal, the extra costs can add up quickly, especially if you are with your family. This is an often overlooked feature but can be super valuable cost wise and assist you in traveling with more peace of mind.
Value Proposition
At the Points Passport, we like to make the value proposition of the cards we review easy to understand. In order to do that, we break down the value into two parts: The initial sign up and the cost to sustain every year after. Luckily, there is no cost with the Chase Freedom Unlimited because there is no annual fee. Your first year will be the most valuable because of the 3x Ultimate Rewards sign up bonus with your first $20,000 of spending. Even if you don’t spend the full $20k in the first year to max out the potential reward points, the card will bring you a ton of value for every dollar spent. After the first year, you’ll begin earning 1.5x UR on all purchases. If you have another Chase card in the Ultimate Rewards ecosystem, you can transfer the cash back into Ultimate Rewards which can increase your valuation significantly. For example, The Chase Sapphire Preferred and Chase Ink Business Preferred offer a 25% UR redemption bonus, and the Chase Sapphire Reserve offers a 50% Ultimate Rewards redemption bonus.
The following years, you’ll continue to earn 1.5x Ultimate Rewards per dollar spent.If you use the Chase Freedom Unlimited as your catch-all everyday card, we estimate you may spend about $300 per month on non-category type purchases such as convenience stores, online purchases, and other miscellaneous items in our example. $300 x 12 months = $3,600 x 1.5x UR earning = 5,400 Ultimate Rewards earned. These Ultimate Rewards earned from miscellaneous purchases add up fast! This is worth $54 directly in the Chase Ultimate Reward portal, which can offset the cost of a flight or hotel stay.
As mentioned before, a more advanced redemption method would be if you were to transfer your Chase Freedom Unlimited’s Ultimate Rewards to your Chase Sapphire Reserve, you would have the ability to get 50% more value of the 60,000 UR your first year and 5,400 UR earned the following years. This means you could be getting $54 to $81 in free travel every year from everyday spend with this no annual fee card. Clearly, this value could be much higher depending on your non-category spend. The Chase Freedom Unlimited really shows the strength of having a workhorse, catch-all card that earns even 0.05% more than your other 1% or 1x back cards.
Primary Benefits
3% cash back or 3x UR points back on all purchases in the first year up to the first $20,000 in charges
Unlimited 1.5% cash back or 1.5 UR points back after the first year
No Annual Fee
Chase Offers - Simply sign in to your mobile application and activate these offers! You will receive a statement credit or UR points when using your card at these specific merchants
Interest Rate: 0% APR on purchases and balance transfers for 15 months
Balance transfer fee: 3% or $5 whichever is greater
Foreign transaction fee: 3%
Travel and Delay Coverage
Final Point
The Points Passport highly recommends the Chase Freedom Unlimited whether you are just starting your credit and points journey or you are an experienced points aficionado. The Chase Freedom Unlimited is an easy to use, everyday workhorse that deserves a place at the top of any travel rewards connoisseur. The Chase Freedom Unlimited’s versatility on non-category 1.5x rewards earning, as well as the very lucrative 3x new sign-up bonus makes one of the highest-earning, no annual fee cards on the market right now. Usually we wouldn’t suggest putting travel on a no-annual fee card, but since the Chase Freedom Unlimited has travel coverage we can! If you are working your way up to a more premium travel card, this is the perfect path to take so you still have a safety net while away from home. We believe this is one of the most powerful no annual fee cards that anyone can hold and gains you access to the high value and flexibility of the Chase Ultimate Rewards ecosystem!