Chase Freedom Unlimited Review: A Simple Card For Non Bonus Spending

0 Shares

The Chase Freedom Unlimited credit card is a great card for non bonus spending if you have a Chase Ultimate card.

It has no annual fee.

It is very simple with no complicated rotating categories to monitor.

Again, it is the best Chase card for non bonus spending.

What is non bonus spending?

Bonus categories are areas covered by credit companies that include popular sectors like groceries, gas, restaurants, internet, etc.

Things that are not covered under these categories, (and there are lots of items) fall under non bonus categories.

These can include stores like Walmart (not counted as grocery), Target, car maintenance, etc.

The Chase Freedom Unlimited works best if you have a Chase Ultimate credit card.

The Ultimate Reward credit cards are:

Chase Sapphire Preferred
Chase Sapphire Reserve
Chase Ink Preferred

Chase Freedom Unlimited Overview

Sign up bonus: $200 when you spend $500 in 3 months
Earn 1.5% on all purchases
$0 annual fee
0% APR first 15 months, then 14.99%-23.74%
5% back on Lyft rides
3% foreign transaction feee

Pros:

No annual fee
Simplicity
Non-bonus categories
Can be combined with a Chase Ultimate Reward card

Cons:

You can get more rewards on cards with bonus categories like the Chase Freedom
3% Foreign transaction fee
Other cards better if you just want cash back

Best for:

People who have a Chase Ultimate card like the Chase Sapphire Preferred/Reserve or Ink Business Preferred.
People who need a card for non bonus spending.
People who like simplicity.

Chase Freedom Unlimited vs Chase Freedom

The Chase Freedom Unlimited is one of Chase’s no annual fee credit cards that give unlimited 1.5% on all purchases.

We did a comparison between the Chase Freedom and Freedom Unlimited in an earlier post.

Although the Chase Freedom came out ahead (if you use the bonus categories), it was only by the equivalent on $30.

We used a budget of $2000 a month for normal expenses that could be put on a credit card.

If you spend more than $2000 a month outside of expenses you cannot put on a credit card each month, the regular Freedom card might not come out ahead.

The regular Freedom only covers $500 of your spending each month.

The average person can put over $2000 per month of spending on a credit card, so over $1500 on the Chase Freedom would not be covered by a bonus category and at only 1%.

I have had both cards for years and think the best case scenario is to have both cards.

I will review the Chase Freedom later.

This review will cover all aspects of the Chase Freedom Unlimited.

This is the best Chase credit card for non bonus spending again.

Make sure to do your own math if you need to choose between these two cards and read this post here.

Chase 5/24 Rule

Make sure you are aware of Chase’s 5/24 rule before you get any credit cards from any bank.

This rule says that if you have opened more than 5 cards in the past two years, you will not be approved for any Chase card.

Two years is a long time to wait for a credit card.

Since Chase cards are valuable to travelers, you should get your Chase cards before other credit cards.

You would have to wait two years if not.

Your first pick should be one of the Chase Ultimate cards again: Chase Sapphire Preferred, Chase Sapphire Reserve, or Ink Business Preferred.

After that, you probably want ether the regular Freedom or Freedom Unlimited.

Benefits of the Chase Freedom Unlimited credit card

1. No annual fee

The Chase Freedom Unlimited credit card has no annual fee.

So, if you like no annual fee cards, this may be your card.

2. Elevated Sign-Up Bonus

The current sign-up bonus for the Chase Freedom Unlimited is $200 after spending $500 in three months.

This is higher than the usual $150 sign-up bonus, so if you had this card in mind, act now while the bonus is higher.

3. Earn 1.5% cash back on all purchases

The Chase Freedom Unlimited card shines in simplicity.

No need to keep up with bonus categories and other bothersome tasks.

The Chase Freedom earns 1.5% on all purchases.

I wrote a post comparing the Freedom to the Freedom Unlimited.

The simplicity is where the Freedom shines.

Keep in mind that with a Chase Ultimate card, neither the Freedom or Freedom Unlimited are your best bet if cash back is all you want.

4. Earn 5% on Lyft Rides

Until March 2022, earn 5% back on all Lyft purchases.

Those can be converted to Chase Ultimate points if you have one of the cards mentioned above.

5. Perks

The Chase Freedom Unlimited is a no annual fee card, but it still has some perks.

Most cards with fees will have more perks.

I will do a post later why paying a fee can make more sense.

Here are the perks of the Chase Freedom Unlimited:

0% APR for the first 15 months, then 14.99%-23.74%
Purchase protection that covers new purchases for 120 days for damage or theft up to $500 per claim and $50,000 per account
An extended warranty by an additional year for warranties of 3 years or less
Roadside assistance
Chase Offers to save on your purchases
Contactless payment to use when available

Other Things To Consider

3% Foreign transaction fee

If you are traveling abroad, this is not the card you want to use.

Use a card with no foreign transaction fees instead.

Redeeming Your Points

Te beauty of the Chase Freedom Unlimited (as well as the regular Chase Freedom) is the ability to transfer those points to an Ultimate credit card.

If you have one of the Ultimate cards, you can redeem for the following:

Chase Sapphire Preferred and Ink Preferred can be redeem for 1.25% instead of the 1% if you had the Freedom Unlimited alone
Chase Sapphire Reserve can be redeemed for 1.5% instead of 1% if you had Freedom Unlimited alone

You can also transfer directly to the following Chase airline partners if you have a Chase Ultimate card:

Aer Lingus
British Airways
Emirates
Iberia
JetBlue
Singapore
Southwest
United
Virgin Atlantic

You can also transfer to the following hotels:

Hyatt
Marriott
IHG

While airline will get you more bang for your buck, transferring to hotels, except Hyatt will not.

Both Marriott and IHG are poor transfer partners and usually not worth your valuable Chase points.

So, it is probably best to have a hotel credit card for those if those are your preferred chains.

Other Cards That Compete With The Freedom Unlimited

The Freedom Unlimited competes with its older sibling, the Chase Freedom card as we mentioned earlier.

Ideally, if possible, I would get both the Chase Freedom and Chase Freedom Unlimited.

Remember, the Chase 5/24 rule.

You should have A Chase Ultimate card first.

If you want just a cash back card, the Citi Double cash credit card is probably the better card.

Other cards that could compete with the Freedom Unlimited are the American Express Everyday card and Capital One Venture One card.

These are no fee cards.

This will depend on if you want Amex membership points, Chase Ultimate points, or Capital One Miles.

Later, if possible you will probably want cards from all three.

If you want a Chase Ultimate cards, the Chase Freedom Unlimited will be the best non bonus spending credit card in the Chase portfolio of cards though.

Why you should have a Chase Ultimate card first

Again, to get value out of the Freedom Unlimited, you should have an Ultimate card first.

The Chase Ultimate cards are again:

Chase Sapphire Preferred
Chase Sapphire Reserve
Chase Business Ink Preferred

Because of Chase’s 5/24 rule, I would get an Ultimate card before the Freedom Unlimited or even the regular Freedom.

Summary

The Chase Freedom Unlimited credit card is the best non bonus card if you have a Chase Ultimate card.

Again, the non bonus categories will cover a lot of purchases and this is a way to maximize your Chase points if you have a Chase Ultimate credit card.

Again, this is best for people who have a Chase Ultimate card first.

If you just want a cash back card, you are better with the Citi Double Cash card.

We are a blog about travel rewards, so you want to first get a Chase Ultimate card and then if possible both the Freedom Unlimited and regular Freedom.

The Freedom Unlimited is a great card if you are just starting out with points and miles for it’s simplicity.

It is actually a lot more popular than it’s older sibling (Chase Freedom) depending on who you ask.