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Some of the offers you see on this page are from our partners, like Citi and American Express, but our coverage is always independent. If you're looking for a cash-back credit card with no annual fee, the Chase Freedom and Chase Freedom Unlimited are two options you'll want to consider.
The cards have many common features, but they let you earn cash-back rewards in very different ways. We're focused here on the rewards and perks that come with each card. These cards won't be worth it if you're paying interest or late fees. When using a credit card, it's important to pay your balance in full each month, make payments on time, and only spend what you can afford to pay. The biggest difference is how the cards earn cash-back rewards. The Freedom Unlimited card comes with a flat 1.
Both cards reward you for every purchase. Freedom Unlimited starts giving you 1. The deciding factor for which card is better for you is how you prefer to earn rewards. The Chase Freedom Unlimited card 's 1. They change every quarter and every year. In my experience, some quarters we use the bonus categories a lot and others not at all. Probably not. Depending on what you spend per month in the bonus categories, you might earn half or less of the potential. When in doubt, it may make more sense to lean toward the Freedom Unlimited card's 1.
Outside of the purchase category bonus, the two cards are virtually identical. They have the same interest rates, pricing, and terms. But both cards also have a trick up their sleeve if you're into travel and want to boost your rewards. More on that in the next section. When you earn cash back with Chase Freedom or Freedom Unlimited, you can cash out at any time. But the cards are also connected to the Ultimate Rewards program , which can give you even more value for travel if you also have the Chase Sapphire Preferred or Chase Sapphire Reserve credit cards.
If you have a Freedom card either version and a Sapphire card again, either version , you can convert cash back into Ultimate Rewards points at a rate of 1 cent to 1 point. Sapphire Preferred gives you 1. Read more: I dreaded trying to transfer Chase points between cards until I tried it, and I still can't believe how easy it was. I have the Chase Freedom card myself and my wife has the Freedom Unlimited.
Chase allows you to combine awards in the same household, so everything comes together in one big balance. That gives us at least 1. As long as you pay your balance off in full every month by the due date, these cards offer decent rewards with little downside. With no annual fee, any cash back you earn is profit in your pocket. But if you're in doubt or think keeping track of rotating categories is too much work, you won't go wrong with Freedom Unlimited. Disclosure: This post is brought to you by the Personal Finance Insider team.
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