Despite their similar names, the Chase Freedom Unlimited℠ and the Chase Freedom® are fundamentally different products. Individually, each offer will excel for very different kinds of consumers. Since both cards come with no annual fee it is easy, and recommended, to get both if you can pay bills on time. This will allow you to maximize your rewards. This guide will go over the strengths and weaknesses of each card, so that you can make-up your mind if you only want to get one.
- The Chase Freedom® is perfect for people who want to maximize their rewards, and don’t shy away from being a little bit more involved in their credit card. You need to track what categories can earn you 5% in a given quarter. So long as you manage to put at least 13% of your total purchases in bonus categories, you’ll be coming out ahead of the Chase Freedom Unlimited℠.
- The Chase Freedom Unlimited℠ is best for consumers who want a hassle-free experience while still earning above-average rewards. The 1.5% cash back you get on all purchases is especially good for consumers who have atypical spending habits – ones that the standard reward categories, like groceries and gas, just don’t capture.
Comparing the Chase Freedom® and Chase Freedom Unlimited℠ at a Glance
The table below gives a quick overview of the two cash back credit cards, so that you may better understand the key similarities and differences between them.
| Chase Freedom® | Chase Freedom Unlimited℠ | |
|---|---|---|
Chase Freedom® | Chase Freedom Unlimited℠ | |
| Annual Fee | Chase Freedom® $0 | Chase Freedom Unlimited℠ $0 |
| Rewards | Chase Freedom® 5% cash back on up to $1,500 in combined purchases in bonus categories each quarter | Chase Freedom Unlimited℠ Unlimited 1.5% cash back on every purchase |
| Best For... | Chase Freedom® Optimizers | Chase Freedom Unlimited℠ Those looking for a simple everyday credit card |
| Biggest Downside | Chase Freedom® You do not earn 5% cash back when you forget to activate your categories | Chase Freedom Unlimited℠ The fixed rewards limit your potential payout |
| Rewards Form | Chase Freedom® Ultimate Rewards | Chase Freedom Unlimited℠ Ultimate Rewards |
| Purchase APR | Chase Freedom® 14.24%-23.24% Variable | Chase Freedom Unlimited℠ 14.24%-23.24% Variable |
| Full Review | Chase Freedom®Link | Chase Freedom Unlimited℠Link |
As you can see, most of the two cards are close to identical, which is what makes choosing between them difficult for many people. The major difference between the cards comes down to how their rewards work. The following section breaks these down in greater detail.
Chase Freedom®
For certain people, the Chase Freedom® will provide significantly better returns -- it all depends on how much of your total spending can qualify for the 5% cash back. As long as you manage to fit at least 13% of your total credit card purchases into the 5% categories, you will come out ahead with the Chase Freedom® over the Chase Freedom Unlimited℠. There are also some extreme cases, where those who spend a lot of money on their credit card will benefit from unlimited 1.5% over a 5% rewards rate with caps. However, you would need to spend over $4,000 per month for that to apply.
Here is the 2016 bonus calendar. Use this table to help determine whether 13% of your total purchases can fit this schedule. Note: These categories, generally change very little year-to-year.
| Jan - Mar '16 | Apr - June '16 | Jul - Sept '16 | Oct - Dec '16 |
|---|---|---|---|
| Jan - Mar '16 Gas stations, local commuter transportation | Apr - June '16 Grocery Stores, Wholesale clubs, not including Walmart and Target | Jul - Sept '16 Restaurants and Wholesale Clubs | Oct - Dec '16 Department Stores, Wholesale Clubs, and Drug Stores |
Chase Freedom Unlimited℠
The Chase Freedom Unlimited℠ gives an unlimited 1.5% cash back on all purchases and is ideal for consumers who want a simple rewards structure. This can be particularly useful for those who are worried about not being able to keep up with the ever-changing calendar and need to activate your 5% categories. Just like the Chase Freedom®, cardholders can qualify for a $150 bonus after spending $500 on purchases within the first 3 months of account opening.
Combining the Chase Freedom® with the Chase Freedom Unlimited℠
If you have the credit score bandwidth and financial responsibility, getting both the Chase Freedom Unlimited℠ and the Chase Freedom® is best value option. You should use the Chase Freedom® whenever you can get 5% cash back, and substitute the Chase Freedom Unlimited℠ in all other cases.
Both credit cards earn Chase Ultimate Rewards points, not direct cash back. If you get both, you can combine your points into a single pool, and then use them do things like pay down your existing balance or to buy gift cards.
If you choose to get the Chase Freedom® and the Chase Freedom Unlimited℠ together, be sure to plan around each card's respective bonus. Don't get both at the same time, if that will make it difficult for you to qualify for both welcome offers. If you manage to snag both, you will walk away with a total value of $300 in your pocket, after a combined $1,000 in total purchase -- a 30% return.
What are Other People Saying About the Chase Freedom® and the Chase Freedom Unlimited℠?
Some of the employees here at ValuePenguin have the Chase Freedom® or the Chase Freedom Unlimited℠ in their wallet. We conducted brief interviews to help share their experiences.
Chris Moon, Card of Choice: Chase Freedom®
Why did you apply for the Chase Freedom® |
|---|
 The Chase Freedom® was my first credit card after graduating from college. I knew I didn’t want to start off with a credit card that had an annual fee, or one that required a security deposit. I liked that the Chase Freedom® didn’t require me to have excellent credit, and I already had an account with Chase. My banker suggested it, and it seemed to make sense for my finances. I was initially turned down for this card, but my banker called the reconsideration line for me, and they approved me for my first $500 line of credit. |
How did you handle activating the 5% categories? |
|---|
| I was worried initially -- I thought this was something I would forget. This was such a small and easy to remember thing that I was sure it would slip through the cracks. Fortunately, it seems that Chase reminds you about activating frequently. I typically activate the categories from their mobile app, when I go to pay my bill through it. I also bank with Chase, and I get reminders about the 5% categories whenever I go to the ATM. |
Craig Cassazza, Card of Choice: Chase Freedom Unlimited℠
Why did you apply for the Chase Freedom Unlimited℠? |
|---|
 I live in New York City and love to go out and have a good time with friends. I couldn't find a card that gave decent rewards on the types of things I'd do when doing that. I like that the Chase Freedom Unlimited℠ gives me a fixed-rate at all these places. In that way, it’s really good for someone with a unique lifestyle. I'd definitely recommend it to anyone like me, who shops at a lot of different places, but doesn't want to carry around a ton of cards in their wallet. |
How do these cards compare to other offers?
If you’re interested in either the Chase Freedom® or the Chase Freedom Unlimited℠, there are a few other credit card offers that may be worth looking at. We outlined these below, and go over the scenarios in which they would be a better choice.
Discover it® for Students as a substitute for the Chase Freedom®
The Discover it® for Students is a much better credit card than the Chase Freedom® for the first year of cardmembership. Like the Chase card, the Discover it® for Students offers 5% cash back in categories that change each quarter, up to the quarterly maximum of $1,500. However, unlike the Chase Freedom®, the Discover it® for Students will double the cash back earned by new cardmembers at the end of the first year. That means you could be earning as much as 10% or as little as 2% during that first year.
After the first year is up, the difference between these two cards will come down to which of the rotating calendars better matches up to how you spend your money. One notable difference: the Discover it® for Students includes as a 5% category two quarters out of the year. We’ve only ever seen the Chase Freedom® offer the same rewards on Amazon during a single quarter. If you shop a lot on Amazon throughout the year, that is something worth considering.
Citi Double Cash Card as a substitute for the Chase Freedom Unlimited℠
The Citi Double Cash Card gives a straight 2% rewards rate on all purchases, making it better in the long-run than the 1.5% you get through the Chase Freedom Unlimited℠. There are two things to keep in mind, however. First, the Citi Double Cash Card has no welcome bonus and thus has the Chase Freedom Unlimited℠ has the better short-term value. Secondly, the rewards you earn through the Citi Double Cash Card cannot be combined with any other program. You can use the Chase Freedom Unlimited℠ with other cards, like the Chase Freedom® or Chase Sapphire Preferred® Card, and combine your rewards. Therefore, the Chase card has the better long-term potential for those who are likely to open another account in the future.