Chase Freedom Unlimited®
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This card is particularly beneficial for those looking to complete a Chase Trifecta, which includes pairing the Chase Freedom Unlimited (CFU) with the Chase Sapphire Preferred (CSP) or Reserve (CSR), and the Chase Freedom Flex (CFF) for optimal rewards across various spending categories.
To qualify for the Chase Freedom Unlimited, a good to excellent credit score is typically required, which means a FICO score of 670 or higher. This card is ideal for those who want to earn cashback on every purchase without worrying about rotating categories or complicated point systems.
Is This Offer Better Than the Standard Offer?
The standard offer on the Chase Freedom Unlimited card gives you $200 back after spending $500 in the first three months. This is a 40% return on small spend, ideal if you’re looking for a quick and easy bonus. However, if you can maximize the $20,000 spend, the alternate offer provides greater long-term value.
Alternate Offer:
Chase Freedom Unlimited’s new offer provides an extra 1.5% back on everything you buy, up to $20,000 spent in the first year. Here’s a breakdown of how this works:
Travel: Normally, you earn 5% back on travel booked through the Chase Travel(SM). With the alternate offer, it becomes 6.5% back.
Dining and Drugstores: Normally, you earn 3% back. With the alternate offer, it’s 4.5% back.
All Other Purchases: Normally, you earn 1.5% back. With the alternate offer, it’s 3% back.
Enjoy 0% Intro APR for 15 months from account opening on purchases and balance transfers, then a variable APR of 19.99% - 28.74%
Who Is This Card For?
This card is perfect for three types of people:
Beginners: If you’re new to credit cards and have only three to five cards, this no-annual-fee card is ideal. You’ll earn at least 3% back on everything while building your credit score.
Simplicity Seekers: If you’re maintaining your 5/24 status and don’t want to juggle multiple cards, this card offers high rewards without the hassle.
Earners: If you have substantial personal or business expenses, this card allows you to funnel up to $20,000 in spending and earn significant rewards.
The Math Behind the Rewards
Let’s break down the potential rewards based on average American household spending:
Travel: An average household spends about $4,500 a year on travel. At 6.5% back, that’s 29,200 points.
Dining: Spending around $9,000 a year on dining (about $750 a month) earns 40,500 points at 4.5% back.
Drugstores: Spending $1,000 a year earns 4,500 points at 4.5% back.
General Purchases: For the remaining $5,500 spent on various purchases at 3% back, you’ll earn 16,500 points.
In total, you could earn 90,200 Chase Ultimate Rewards (UR) points, which can be valued in different ways depending on how you use them.
What Are These Points Worth?
Cashback: At a minimum, 90,200 points can be cashed out for $902.
Travel: If you have a Chase Sapphire Reserve card, you can redeem these points for travel at 1.5 cents per point, totaling $1,350. This represents a 7% return on your spending.
Transferring to Hyatt Hotels: For even more value, transfer your points to Hyatt Hotels, where you can potentially get an average of 2 cents per point, making 90,200 points worth $1,800. This is a 9% return on your spending.
Important Caveats
5/24 Status: This is a Chase card, so it affects your 5/24 status. Ensure you’re under the 5/24 limit before applying.
Bonus Eligibility: You’re only eligible for the bonus if you haven’t received one on this card in the last 24 months.
Spending Limit: The elevated rewards are only on up to $20,000 spent in the first year. After that, the card reverts to its standard multipliers.
Final Opinion:
The Chase Freedom Unlimited® credit card is a solid choice for anyone looking to earn cashback on everyday purchases without an annual fee. With its straightforward rewards structure, it offers 1.5% cashback on all purchases, with enhanced rates in select categories like travel, dining, and drugstores. The 0% introductory APR for the first 15 months is a great benefit for those who plan to carry a balance, and the generous welcome bonus makes it even more appealing. Overall, it’s a versatile, no-annual-fee card that suits both beginners and seasoned cardholders who want to earn cashback without complicated reward categories or fees.
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SOURCES:
Household Travel: https://gogocharters.com/blog/average-vacation-cost/#:~:text=Average%20Vacation%20Costs%20in%202024%3A%20Transportation%2C%20Entertainment%2C%20and%20Budgeting%20Tips&text=Quick%20Answer%3A%20In%20the%20U.S.,choose%20to%20spend%20their%20money.
Household Dining: https://www.budgeat.app/food-for-thought/crunching-the-numbers-the-surprising-average-food-cost-per-month-for-a-family-of-4#:~:text=It's%20important%20to%20allocate%20a,fast%20food%2C%20and%20delivery%20services.
Household Drugstores: https://www.businessinsider.com/typical-cvs-shopper-demographic-urban-genx-earning-high-income-2021-9#:~:text=The%20typical%20customer%20visits%20CVS,annual%20spend%20is%20about%20%24462.
Household General Non-Category Spend: https://www.valuepenguin.com/average-household-budget
