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Chase released an interesting new welcome offer today for the no-annual-fee Chase Freedom Unlimited® card.
The card already gives members at least 1.5% cashback (awarded as 1.5X Ultimate Rewards points) on all non-bonused spending. But new cardholders approved through this promotion receive an additional 1.5% (or 1.5X) on all eligible purchases made within the first year of card membership. The promotion is valid on to $20,000 spent on purchases during the initial 12 months. That’s worth up to $300 in bonus cash back.
That effectively makes each purchase worth at least 3X Ultimate Rewards points throughout that period.
The Chase Freedom Unlimited® offers a host of regularly bonused categories — so the 1.5X is especially juicy for certain spending. For example:
- 5% cashback (5X Ultimate Rewards points) on travel purchased through Chase Ultimate Rewards® becomes 6.5%.
- 3% cashback (3X Ultimate Rewards points) on drugstore purchases becomes 4.5%.
- 3% cashback (3X Ultimate Rewards points) on dining purchases (restaurants, takeout, eligible delivery services) becomes 4.5%.
Now, here’s where it gets even sweeter for some people.
Remember three Chase Ultimate Rewards® cards offer bonus redemption rates when redeeming points toward travel purchased through Chase’s travel service.
The Chase Sapphire Reserve® bonuses all point redemptions for Chase travel by 1.5X. The Chase Sapphire Preferred® Card and the Ink Business Preferred offer 1.25X bonus value.
So if you purchase travel through Chase (remember, you can buy Delta flights through Chase!), you’ll earn 6.5X points per dollar spent. (Assuming it’s the first year of card membership and you haven’t hit that $20,000 spending threshold.) If you transfer your Chase Freedom Unlimited®‘s Ultimate Rewards points to a Chase Sapphire Reserve® card, they’re worth 9.75X each in travel purchases. That’s almost a 10% return. Wow!
Is this a Good Deal?
Yes and no. And as I always say, it depends on your travel goals, needs, and your budget.
Earning at least 3% back on all purchases is pretty darn nice. Now, that’s only for a year or up to $20,000 in spending, whichever comes first. But 3% back on dining purchases — especially for a no-annual-fee card! — is nothing to sneeze at.
But consider that the Chase Freedom Flex® offers new cardholders a $200 cashback bonus after spending only $500 in purchases within three months of being approved for the card. To fully realize the Chase Freedom Unlimited®‘s $300 bonus, you have to spend $20,000.
On the other hand, there’s the potential to earn a lot of points. Depending on your spending and redemption habits, this might be very well worth it for you — especially if you hold the Chase Sapphire Reserve®, Chase Sapphire Preferred® Card, or the Ink Business Preferred cards because of their Chase travel bonuses.
The Chase Freedom Unlimited® is a great card to have anyway. So this may be a good opportunity for you.
Final Approach
Chase released an interesting new welcome offer today for the no-annual-fee Chase Freedom Unlimited® card: a 1.5% bonus on all purchases made within the first year of card membership. (A limit of $20,000 in spending applies.) It may or may not be worth it for some people.
Advertiser Disclosure: Eye of the Flyer, a division of Chatterbox Entertainment, Inc., is part of an affiliate sales network and receives compensation for sending traffic to partner sites, such as CreditCards.com. Some or all of the card offers that appear on the website are from advertisers. Compensation may impact how and where card products appear on the site. This site does not include all card companies or all available card offers. Opinions, reviews, analyses & recommendations are the author’s alone, and have not been reviewed, endorsed, or approved by any of these entities. Some of the links on this page are affiliate or referral links. We may receive a commission or referral bonus for purchases or successful applications made during shopping sessions or signups initiated from clicking those links.
Responses are not provided or commissioned by the bank advertiser. Responses have not been reviewed, approved or otherwise endorsed by the bank advertiser. It is not the bank advertiser's responsibility to ensure all posts and/or questions are answered.
Any way to use CFU Visa to pay mortgage if bank doesn’t accept cc? Plastiq? Does offer apply if applicant already holds another CFU?
Plastiq might work. I would think the offer wouldn’t apply. But I didn’t see anything in the Offer Terms prohibiting current cardholders from signing up. Probably safer if you have a family member who hasn’t yet gotten the card.
Plastiq won’t process Visa or Amex cc for mortgages. Only Discover, Diners, JCB, or bank ACH. I think Diners includes MC. Any MC or Discover that pays 3% cash back to cover Plastiq 2.85% fee?
Right, sorry. Maybe it’s the post COVID-19 brain fog or my four-year-old daughter in my office selling me pretend ice cream that distracted me. 🙂 Off the top of my head, I can’t think of any eligible 3% cards. But if I find something, I’ll let you know.
I think Discover had a 1.5% CB offer that paid another 1.5% for all charges during the first year at the end of the first year. Is that still an option? Thoughts?
I didn’t see that option on the cards I just checked.
I think it’s the Chase Freedom Flex® that offers the bonus spend on various categories. The Freedom Unlimited is 1.5 point on all spend regardless of category.
That used to be the case. But Chase Freedom Unlimited® joined the cool kids and added the category bonuses within the past couple of years.