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Cashback credit cards often take a back seat in the shadow of premium travel rewards cards.
However, cashback credit cards can play a significant role in your points and miles strategy, whether it’s earning a return on non-bonus category spending or earning a transferable rewards currency for outsized value redemptions.
The Chase Freedom Unlimited® earns unlimited 1.5% cash back on all purchases, as well as higher rates on bonus category spending.
So is the Chase Freedom Unlimited a good credit card—and if so, is it worth it?
For most people, the short answer is yes.
Let’s run through its perks and drawbacks to see if it deserves a spot in your wallet.
Earn an additional 1.5% cash back on everything you buy
(on up to $20,000 spent in the first year) - worth up to $300 cash back!
Overview of the Chase Freedom Unlimited Credit Card
Here’s an overview of what the Chase Freedom Unlimited has to offer:
| Card Feature | Chase Freedom Unlimited |
|---|---|
| Annual fee | $0 |
| Welcome bonus | Receive usually between $200 and $600 (or 20,000 and 60,000 Ultimate Rewards points) after spending between $500 and $20,000 within the first 3–12 months of card membership |
| Bonus spending categories | • 5% cash back on travel purchased through Chase Travel℠ • 3% cash back on dining at restaurants, which includes takeout and eligible delivery services • 3% cash back on drugstore purchases • 1.5% cash back on all other purchases |
| Other notable perks | • Liability protection • Extended warranty protection • Purchase protection • Trip cancellation/interruption insurance • Auto rental collision damage waiver • Complimentary DashPass • Bonus cash back on Lyft rides |
Key Benefits of the Chase Freedom Unlimited Card
Let’s run through the benefits of the Chase Freedom Unlimited card to see whether it’s worth it for you.
Outsized Welcome Bonus
For a $0 annual fee card, the Chase Freedom Unlimited tends to offer lucrative welcome bonuses.
The welcome bonus varies, but it’s typically around $200 after spending $500 within the first three months. However, offers have gone as high as $600 with a minimum spending requirement of $20,000 within the first 12 months of card membership.
You can maximize the value of the Freedom Unlimited’s welcome bonus even more by transferring your earnings to an eligible Ultimate Rewards card.
Something important to understand with all of Chase’s cashback cards is that you don’t actually earn rewards in the form of cash back. Instead, you earn Chase Ultimate Rewards points which can be redeemed as cash back only. That’s unless you also own one of the following credit cards from Chase:
- Chase Sapphire Preferred® Card
- Chase Sapphire Reserve®
- Chase Ink Business Preferred® Credit Card
If you own one of the cards above in addition to the Chase Freedom Unlimited, you’ll be able to transfer your Ultimate Rewards points earned on the Freedom Unlimited to your other cards. By doing this, you’ll be able to use your points for travel redemptions and transfer partners, unlocking higher value redemptions than you’d receive with cash back only.
Chase Sapphire Preferred® Card
60,000
bonus points
after you spend $4,000 on purchases in the first 3 months of account opening.
Annual Fee: $95
Chase Ink Business Preferred® Credit Card
90,000
Chase Ultimate Rewards Points®
after you spend $8,000 on purchases in the first 3 months after account opening.
Annual Fee: $95
That also means that when a welcome bonus offer is between $200 and $600, you’ll actually earn between 20,000 and 60,000 Ultimate Rewards points which have a fixed value redemption rate of 1 cent per point for cash back. However, if you transfer those points to the Chase Sapphire Reserve, you can redeem them at 1.5 cents per point through the Chase Travel portal or for even more by transferring them to a hotel or airline partner, boosting the value of your earnings significantly.
That’s where the value of the Chase Freedom Unlimited’s welcome bonus truly shines.
Unlimited Cash Back on Bonus Category Spending
The Chase Freedom Unlimited offers solid cashback multipliers. Here’s a summary of its bonus spending categories:
- 5% cash back on travel purchased through Chase Travel
- 3% cash back on dining at restaurants, which includes takeout and eligible delivery services
- 3% cash back on drugstore purchases
- 1.5% cash back on all other purchases
These cashback multipliers cover you for a wide range of expenses, from everyday purchases to travel expenses.
If you can make use of Chase Travel, 5% cash back on your spending can help reduce the cash cost of your next vacation.
The 3% cash back earned on purchases made at drugstores is a unique feature of the Chase Freedom Unlimited that’s seen on few other cards. This makes it a great way to expand your ability to earn a return on every purchase you make.
For the average American household that spends $3,639 per year on dining away from home (according to the BLS 2022 Consumer Expenditure Survey), 3% cash back on dining could net a return of at least $109 per year.
The Chase Freedom Unlimited also comes in handy for those purchases that fall outside typical bonus spending categories, as it earns 1.5% cash back on all other purchases. Whether it’s utility bill payments, wedding expenses, auto repairs or any other non-traditional bonus spending categories, the Chase Freedom Unlimited ensures that you’ll get cash back on your spending.
Zero Liability Protection
As with many credit cards, the Chase Freedom Unlimited offers zero liability protection insurance.
That means you won’t need to pay a dime in the event of unauthorized, fraudulent charges made with your card.
Purchase Protection
The Chase Freedom Unlimited insures you against covered damages or theft for new purchases, up to 120 days after the date of purchase. You’ll be covered up to $500 per claim and $50,000 per account when you use your card to purchase an eligible product.
Extended Warranty Protection
The Chase Freedom Unlimited also offers extended warranty protection on products with a U.S. manufacturer’s warranty of three years or less. If you purchase an eligible product using your card, the warranty will be extended by an additional year.
Trip Cancellation/Interruption Insurance
For a $0 annual fee card, the Chase Freedom Unlimited offers an impressive set of travel insurance perks.
When you pay for a trip using your card, you can be reimbursed up to $1,500 per person and $6,000 per trip for any pre-paid, non-refundable passenger fares, in the event that your trip is canceled or cut short by inclement weather, sickness or any other eligible situations.
Auto Rental Collision Damage Waiver
If you decline your rental company’s collision damage waiver and pay for your rental car using your card, you’ll be covered in instances of collision damage or theft. You’ll receive coverage up to the actual cash value of the card.
Coverage is secondary in the U.S. and primary abroad.
Complimentary DashPass
As a Chase Freedom Unlimited cardholder, you’re eligible for up to three months of complimentary DoorDash membership. This unlocks $0 delivery fees and lower service charges on eligible orders with Caviar and DoorDash.
After the three-month period is over, you’ll be enrolled automatically in DashPass at a 50% discounted rate for the following nine months.
You’ll need to activate the DashPass offer by January 31, 2025.
Bonus Cash Back on Lyft Rides
As a Freedom Unlimited cardholder, you can earn a total of 5% cash back on Lyft rides through March 31, 2025.
That’s a 3.5% cashback bonus on Lyft rides, in addition to the 1.5% cash back you already earn on all other purchases.
Cost-Benefit Analysis
Let’s look at how the Chase Freedom Unlimited’s perks stack up with its associated costs.
Analysis of Annual Fees
The Chase Freedom Unlimited is a $0 annual fee card. Therefore, there’s no tangible financial cost when it comes to holding the card.
The only real cost the card incurs is taking up a spot in your Chase 5/24 count, which is Chase’s rule prohibiting new card applications for those who have opened five or more credit cards with any card issuer in the last 24 months.
Therefore, the question is whether the Chase Freedom Unlimited is worth a spot in your 5/24 count or not.
Real-World Value of Benefits
Unlike certain cards with perks that are difficult to use in reality, the Chase Freedom Unlimited makes your life as simple as possible.
You won’t need to worry about earnings caps or rotating cashback categories as with other cashback credit cards.
Likewise, it’s the perfect card for earning cash back on non-bonus spending category purchases. If you also hold an eligible premium Ultimate Rewards earning card, this makes it even more lucrative as you can transfer your earnings to these cards for outsized value redemptions with one of Chase’s 14 airline or hotel transfer partners.
Similarly, the Chase Freedom Unlimited has some of the best travel insurance perks for a $0 annual fee credit card, including trip cancellation/interruption insurance and an auto rental collision damage waiver. So if you’re not interested in premium travel rewards credit cards, the Chase Freedom Unlimited still has you covered with premium insurance benefits.
If you can make the partner benefits work for you, such as cash back on Lyft rides and a complimentary DashPass membership, you can reap even more value from the card.
If you already hold a Chase Sapphire or Ink Business Preferred Credit Card, or if you have zero interest in paying an annual fee, the Chase Freedom Unlimited could be well worth a spot in your 5/24 count.
For current Sapphire or Ink Business Preferred cardholders, the Chase Freedom Unlimited is a great addition to your card collection to maximize your earnings on all potential purchases as well as snag a lucrative, transferrable welcome bonus.
10xTravel’s Experiences and Reviews
Here’s an overview of our personal experiences with the Chase Freedom Unlimited card.
Positive Feedback
The Chase Freedom Unlimited mixes ease of use with lucrative earnings.
Unlike other cashback cards, you don’t need to worry about activating rotating quarterly bonus cashback categories. This makes it an easy card to hold and benefit from when you need it without any extra work.
Cashback earnings are also uncapped, making it stand out compared to other cashback cards.
The beauty of the Chase Freedom Unlimited is that it’s the card equivalent of set-it-and-forget-it: simply keep it in your wallet for those purchases that don’t fall into other bonus spending categories and never miss an earning opportunity again.
Likewise, if you’re just getting into the points and miles game, the Chase Freedom Unlimited is a solid $0 annual fee card that can grow with and complement your card strategy.
Criticisms or Drawbacks
It goes without saying that the Chase Freedom Unlimited card isn’t a premium travel rewards credit card. So if you’re after flashy perks such as lounge access, a Global Entry or TSA PreCheck® statement credit, elite rental car company status and more, the Freedom Unlimited wouldn’t be a wise choice.
Similarly, if you’re after a pure cashback credit card and have no interest in pooling your Ultimate Rewards for lucrative travel redemptions, you may be better off going for a card with higher cashback multipliers. For example, the Citi Double Cash® Card earns 2% cash back on all purchases—1% when you buy and 1% when you pay.
You could also consider cards that offer higher cashback multipliers on specific quarterly rotating bonus spending categories to maximize your earnings, such as the Chase Freedom Flex® credit card.
$200
Bonus
after you spend $500 on purchases in your first 3 months from account opening
However, if using your rewards for travel redemptions is your main goal, then the Chase Sapphire Preferred Card or Chase Sapphire Reserve would be a better alternative to the Chase Freedom Unlimited. In this case, the Freedom Unlimited would work well as a supplemental card to your primary travel rewards card.
Likewise, it should be noted that the card comes with a foreign transaction fee of 3%. That means you should stay clear of using this card when traveling abroad.
Final Verdict: Is the Chase Freedom Unlimited Card Worth It?
Overall, the Chase Freedom Unlimited can be more than worth a spot in your 5/24 count. Thanks to its solid earnings structure and the ability to transfer your Ultimate Rewards points, the Chase Freedom Unlimited is worth it for many people—especially since it’s free.
With a lucrative, transferable welcome bonus, solid cashback multipliers on everyday and non-bonus category spending, and a competitive range of travel insurance perks, the card is a powerhouse of value for a $0 annual fee.
There’s much to love about the Chase Freedom Unlimited, and if you pair it with another eligible Chase card, you can maximize the value of your earnings and redemptions even further.
New to the world of points and miles? The Chase Sapphire Preferred® Card is the best card to start with.
With a bonus of 60,000 bonus points after you spend $4,000 on purchases in the first 3 months of account opening. , 5x points on travel booked through the Chase Travel Portal and 3x points on restaurants, streaming services, and online groceries (excluding Target, Walmart, and wholesale clubs), this card truly cannot be beat for getting started!
(on up to $20,000 spent in the first year) - worth up to $300 cash back!
after you spend $500 on purchases in your first 3 months from account opening
Editors Note: Opinions expressed here are author’s alone, not those of any bank, credit card issuer, hotel, airline, or other entity. This content has not been reviewed, approved or otherwise endorsed by any of the entities included within the post.
10xTravel is part of an affiliate sales network and receives compensation for sending traffic to partner sites, such as CreditCards.com. This compensation may impact how and where links appear on this site. This site does not include all financial companies or all available financial offers. Terms apply to American Express benefits and offers. Enrollment may be required for select American Express benefits and offers. Visit americanexpress.com to learn more.
Editors Note: Opinions expressed here are author’s alone, not those of any bank, credit card issuer, hotel, airline, or other entity. This content has not been reviewed, approved or otherwise endorsed by any of the entities included within the post.
bonus cash back
after you spend $6,000 on purchases in the first 3 months from account opening
Miles
once you spend $4,000 on purchases within 3 months from account opening
bonus points
after you spend $4,000 on purchases in the first 3 months of account opening.
Membership Rewards® Points
after you spend $6,000 on eligible purchases with your new Card within the first 6 months. Plus, receive 20% back in statement credits on eligible purchases made at restaurants worldwide within the first 6 months of Card Membership, up to $100 back. Limited time offer. Offer ends 11/6/24.
