Everything You Need to Know About the Chase Freedom Credit Card

What is the Chase Freedom Credit Card?

Two of the most popular credit cards for beginners and credit card enthusiasts are Chase's Freedom cards.

The Chase Freedom Unlimited and the Chase Freedom Flex are two popular cashback credit cards that can also be used as points, offered by Chase. Both cards allow you to earn rewards on your everyday purchases, but they have some key differences that you should consider when deciding which card is right for you.

One of the main differences between the two cards is the way you earn rewards.

The Freedom Unlimited card allows you to earn 1.5% cash back on all purchases, with no limit on the amount of cash back you can earn. The Freedom Flex card, on the other hand, offers 5% cash back on up to $1,500 in combined purchases in rotating categories each quarter.  Both cards offer unlimited 5% cash back on travel purchased through the Chase Ultimate Rewards portal, 3% cash back on dining and drugstore purchases. 

Chase Freedom Rewards

In addition to earning cash back on your purchases, the Freedom Unlimited and Freedom Flex card also offers a sign-up bonus of $200 cash back after you spend $500 on purchases in your first 3 months from account opening. The cards also run promotions on either 5% back on grocery store (excluding Target and Walmart) or gas purchases on up to $12,000 in spend for the first year. The card has a $0 annual fee, which means you can earn rewards without paying any fees to use the card. Both cards also offer a 0% intro APR on purchases for the first 15 months from account opening, which can be helpful if you're planning a big purchase and need some time to pay it off interest-free.

The Freedom Unlimited and Freedom Flex card also offer additional benefits, such as access to the Chase Ultimate Rewards program. With Ultimate Rewards, you can redeem your cash back for a variety of rewards, including travel, gift cards, and merchandise. You can also transfer your cash back to participating frequent traveler programs at a 1:1 value. Some of the exclusive transfer partners of Chase include United Airlines, Southwest Airlines, Hyatt, and IHG. 

Chase allows you to transfer your points to a variety of partner programs at a 1:1 ratio in increments of 1,000 points, and these transfers are usually processed instantly. However, there may be a few exceptions to this. Chase currently has 11 transfer partners. The value of your points can vary significantly depending on your destination and travel dates, so it's important to compare all your options and choose the redemption option that provides the most value for your points. To get the most out of your Ultimate Rewards points, it's a good idea to be thorough and consider all your options for departure and arrival dates and different hotel locations.

In addition to cash back and rewards, both cards offer a range of other benefits, such as a $0 liability guarantee, which means you won't be held responsible for unauthorized charges made with your card. The card also offers purchase protection, which covers your new purchases against accidental damage or theft for 120 days, and extended warranty protection, which doubles the manufacturer's warranty on your covered purchases. However, the Chase Freedom Flex offers more benefits than the Freedom Unlimited, including cell phone protection, which could provide added peace of mind and potentially save you money in the long run – a benefit that is uncommon on no-annual-fee cards.

Should I get the Chase Freedom Credit Card?

If you believe you can maximize the quarterly bonus categories of the Chase Freedom Flex, the extra 5% cash back that you'll earn each quarter could be worth more than the lower 1% cash back that you'll earn on all other purchases outside of the bonus categories. However, keep in mind that you'll need to track the bonus categories each quarter, activate the offer,  and monitor your spending in those categories. Alternatively, if you prefer not to worry about tracking bonus categories, the Chase Freedom Unlimited offers a straightforward way to earn credit card rewards with a flat 1.5% cash back on all purchases. It's worth noting that both Visa and Mastercard are widely accepted in the US, though there are a few exceptions – for example, only Visa cards are accepted at Costco, so the Chase Freedom Unlimited would be a better option for frequent Costco shoppers.

If you're unsure which of the two cards is right for you, you can always get both. There are no restrictions preventing you from having both cards, and doing so can give you the benefits of each card. For example, you might use the Chase Freedom Flex for its rotating bonus categories and cell phone protection, and then switch to the Chase Freedom Unlimited for its flat 1.5% cash back on all purchases outside of the bonus categories. This way, you can take advantage of the best of both cards.

It's important to note that the Chase Freedom Flex and Freedom Unlimited are subject to Chase's "5/24" rule, which means that if you've been approved for five or more credit cards from any bank in the past 24 months, your applications for new credit cards from Chase will be automatically denied. However, this rule generally won't apply to individuals who only get a credit card or two every few years. If you're considering adding a new credit card to your wallet, consider whether the Chase Freedom Unlimited or Freedom Flex, or both, meet your needs and spending habits. Something else to keep in mind, both Freedom cards have a 3% foreign transaction fee, so you may want to leave these cards at home when traveling internationally. 

Overall, the Chase Freedom Flex credit card is a good option for people who want to earn cash back on their everyday purchases and take advantage of rotating category bonuses. The card's sign-up bonus, $0 annual fee, and additional benefits make it an attractive choice for people who want to earn rewards without paying any fees.

‍

‍