Chase Freedom Unlimited in 2020: Is It a Good Rewards Credit Card Option?
Chase Freedom Unlimited Card
Hello everyone. Welcome back to GR8 Tech 2Day. Today we are looking at the next credit card in our credit card review and evaluation series. We started our review in this series with the Chase Freedom card, which is a fantastic card for anyone to begin their credit card journey, with its 5% cash back on select quarterly categories and a $200 cash back bonus.
Today, we will continue our series, staying with Chase and their Freedom Unlimited card. Chase has a large offering of credit cards (24 at last count) and the Freedom Unlimited Card is considered one of the beginner cards.
The Chase Freedom Unlimited card, at a glance, allows the cardholder to earn unlimited 1.5% cashback on every purchase with no minimum to redeem for cashback. The introductory APR is 0% for 15 months from account opening on purchases and balance transfers. After the initial introductory rate, you will see an APR of 16.49% to 25.24% variable APR. As with the Chase Freedom card, this card has no annual fee. Also, as with the Chase Freedom card, the Chase Freedom Unlimited comes with a bonus. A new cardholder will receive a $200 cashback bonus after spending $500 on purchases within the first 3 months of opening the account.
The Chase Freedom Unlimited card, as with the other Chase credit cards allows you to earn points for use with the Chase Ultimate Rewards program. With the Chase Freedom Unlimited card, the introductory $200 cashback bonus will earn you 20,000 points which can be used for $200 cashback or with other things like travel, gift cards, and transfer to travel partners at a 1:1 ratio. If you have one of the premium cards offered by Chase, like the Chase Sapphire Preferred, you can transfer the points you earn on this card over to the Preferred card and get 1.25 points which increase this card’s value. This is also the case with the Chase Freedom card, which I previously neglected to mention.
To earn your $200 cash back bonus, you must spend $500 with the first 3 months of account opening. You can earn this on just about anything you purchase. However, you will not get credit for the following purchases:
- Balance transfers
- Cash advances
- Travelers checks
- Foreign currency
- Money orders
- Wire transfers
- Lottery tickets
- Casino gaming chips
- Race track wagers or similar betting transactions
- Checks that access your account
- Unauthorized or fraudulent charges
- Fees of any kind
Cash back rewards are the rewards that can be earned under the program. The rewards are tracked as point and each $1 in Cash Back rewards earned is equal to 100 points. A cardholder earns points when they use the Chase Freedom Unlimited card to make purchases of products and services save for refunds and/or returns. Almost anything you purchase will earn points but the aforementioned transactions above will also not earn points. So, you get 1.5% cash back on every dollar spent and they do not expire. However, when you shop with the points, when you use those points, you only get $0.008 or $0.80 per 100 points. So, with that in mind, you’d be far better off by getting a premium card like the Chase Sapphire Preferred card to transfer points there and then use those point in the Ultimate Rewards program, particularly through the partner services.
Conclusion and Final Thoughts
So, is this card worth it? Personally, I would get this card if I only cared about cash back. 1.5% is a decent return and is worth far more if you are willing to get the Chase Sapphire Preferred card to transfer your points there. Still, an easy bonus to get with the $200 for the spending $500 in the first 3 months of having the card is quite enticing. Combine this with the 1.5% cash back on everything with no annual fee and 0% APR for the first 15 months and you have a decent card. Then, if you also get the Chase Freedom card, you could get the same easy bonus and 5% cash back on specific quarterly categories and you have a nice cash back and no annual fee setup. Would I recommend this card? Yes, I would even though, as you will see in a future post, the Citi Double Cash Back card and a couple others will give better returns.