Since my friends and family know that I love credit cards, I’m routinely asked for recommendations. Sometimes the question is open ended without a card in mind. When this is the case, I’m sincerely sorry for the 1 hour conversation about credit cards that follows. Instead, those smart enough to want to avoid said lectures, usually ask me about a specific credit card. They also routinely cut me off immediately after I give them the answer.
With that, the card I’ve been asked about the most recently is the Chase Freedom Unlimited card. Now, I can’t fault anyone for that, it makes sense. A ton of people signed up for the Chase Sapphire Reserve card back in 2016 and 2017. Then, after a while with the card, they’re starting to realize that they can do better. After all, there are now cards that offer 5X points on travel and dining! However, to get those rewards, they have to expand beyond the Chase ecosystem.
Think about it, a ton of the people who opened Chase Sapphire Reserve cards were or have become Chase bank customers. Since then, Chase has made it incredibly easy for them to manage their bank and card accounts from a single, easy-to-use, website. Chase isn’t dumb, they are doing this on purpose.
So, when people start looking for a new card to add to their wallet they are naturally going to start with “their” bank, Chase. Lucky for them, Chase offers dozens of credit card products to chose from.
Is the Chase Freedom Unlimited Card Worth It?
In a word, sure, but that all depends. If you’re looking for the very best credit card for all situations, then no, the Chase Freedom Unlimited card is absolutely not worth it. However, if you are an existing Chase card holder with access to the full Ultimate Rewards program, then the card could be worth considering.
For those of you who aren’t familiar with the Chase Freedom Unlimited card, the card is a ‘cash back’ credit card that earns 1.5% Ultimate Rewards points on all purchases. The card lacks an annual fee and, well, that’s about it. Overall, on its own, the Freedom Unlimited is a no frills 1.5% cash back credit cards.
Now, although the card earns Ultimate Rewards points, Chase limits card holders to certain redemption options. Specifically, Chase Freedom card holders can only redeem their points for cash, gift cards, or travel at $0.01 per point. This effectively makes the Chase Freedom Unlimited card a cash back card. However, since the card earns 1.5% cash back on all purchases, it’s better than a traditional 1% cash back card, but worse than the 2% cash back Citi Double Cash card.
Converting Cash Back Into Full Chase Ultimate Rewards Points
What makes the Chase Freedom Unlimited card appealing is that Chase allows card holders to combine Ultimate Rewards points. This means that you can combine your Chase Freedom Unlimited points with your Chase Sapphire Preferred account and transfer points to a travel partner. In this case, you’ll effectively earn 1.5x Chase Ultimate Rewards points on all purchases, which is appealing.
To make this happen you have to already have access to a full Chase Ultimate Rewards account. This means that you have to also carry a Chase Sapphire or Chase Ink credit card. So, if you already have a Chase Sapphire or Ink account and want to stick to the Chase ecosystem, then the Freedom Unlimited card could be worth carrying. Likewise, if you are going to open multiple card accounts to maximize rewards right now, I wouldn’t recommend a Chase strategy.
What To Do Instead?
This is where my friends and family normally cut me off.. thankfully, I can keep typing here as long as I want. In order to answer this question we have to look at a few different scenarios.
Scenario 1: “I just want the best cash back credit card I can get” – In this case, I’d go with the Citi Double Cash card. The card offers 2% Cash Back on all purchases and lacks an annual fee. As a standalone card you can also use your cash back as Thank You points, but can only transfer those points to Jet Blue (could be good for American fliers too).
Scenario 2: “I already have the Chase Sapphire… and want just 1 other card with Chase” – If this is your situation, I’d recommend the Chase Freedom card over the Chase Freedom Unlimited card. That’s because the Chase Freedom card only offers 1% cash back on everyday purchases, but offers 5% cash back on certain purchases each quarter. Overall, I think most people would benefit more from this strategy than from pairing the Freedom Unlimited. Obviously, if you’re comfortable with all 3, that’s best when sticking to Chase.
Scenario 3: “I want to maximize all of my spending and I don’t care how” – If this is you, I’d personally recommend a Citi card strategy. I’d pair the Citi Double Cash card with the Citi Prestige card. By pairing these cards you’ll earn 2X ThankYou points on all purchases and up to 5X points on other purchase. Here’s a detailed review of a Citi card strategy.
Final Thoughts
I know, I rambled a bit, but hopefully you get the point. Is the Chase Freedom Unlimited card alone worth carrying; No! However, it could be if you pair it with a Chase Sapphire or Ink card and potentially the Chase Freedom card.
If you’re looking for the best standalone cash back credit card, I’d go with the Citi Double Cash card. If you’re looking for the best overall single-issuer card strategy, I’d go with the Citi Double Cash and Citi Prestige cards.
Ultimately, if you do decide the Chase Freedom Unlimited card is worth carrying, consider using my referral link here. By using my referral link, you’ll get the a $200 sign-up offer and low intro APR and I earn a $100 statement credit.
