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.
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.
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.
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