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Since its launch in 2016, the Chase Freedom Unlimited® (Rates & Fees) has offered cardholders a straightforward earning structure: 1.5% cashback on all purchases. That has made the card a go-to for everyday purchases.
That simple earning structure has come to an end… but it's not bad news! Freedom Unlimited cardholders now earn bonus cashback in three categories: travel, dining, and drugstore purchases.
Related: Chase Announces Chase Freedom Flex℠ Credit Card
Additional Freedom Unlimited Bonus Categories
The Freedom Unlimited now offers three additional bonus categories:
- 5% on travel purchased through Chase Travel℠
- 3% on dining — including dining in, takeout, and eligible delivery services
- 3% on drugstore purchases
- All other purchases will continue to earn 1.5% cashback
Simply put, this is excellent news. Chase has kept the best part of the Freedom Unlimited while sweetening the card with additional bonus categories. These earning rates are available to new and existing cardholders.
5% cashback on travel
The star of this announcement is the 5% earning rate on travel purchases. To get this rate, cardholders will need to purchase travel through the Chase Travel℠ portal. The rates are generally the same whether you book through the portal or directly with airlines and hotels. Just keep in mind that hotels generally don't honor elite benefits on reservations booked through a travel portal.
Getting 5% cashback on a no-annual-fee credit card isn't unheard of. After all, the similarly-named Chase Freedom® earns 5% cashback on rotating categories. However, cardholders only earn 5% on the first $1,500 in purchases each quarter. Not only is the Freedom Unlimited‘s 5% travel category permanent, it is also unlimited.
3% cash back on dining
There's no lack of credit cards offering a bonus for dining. However, many of the highest-earning cards come with a hefty annual fee. That means the Freedom Unlimited‘s 3% cash back on dining is going to be tough to beat for those looking to maximize their return from a no-annual-fee card.
3% cash back on drugstore purchases
While travel and dining are common bonus categories, drugstore purchases are not. Currently, no major bank credit card offers a permanent spending category for drugstore purchases. Only the Bank of America® Customized Cash Rewards credit card lets cardholders choose to earn 6% cashback at drugstores. But that's only up to $2,500 in combined purchases each quarter with other categories, and only for the first year. After the 3% first-year bonus offer ends, you will earn 3% cash back on these purchases up to the quarterly maximum.
However, the Freedom Unlimited‘s 3% cashback earning on drugstore purchases will be unlimited. That will make the Freedom Unlimited the card to beat for drugstore purchases long term.
Pairing With Chase Sapphire Cards
The real power of the Freedom Unlimited isn't in earning 1.5% cashback. After all, there are other no-annual-fee credit cards that offer 2% cashback. Instead, the way to maximize the Freedom Unlimited is by pairing it with an Ultimate Rewards-earning Chase credit card like the Chase Sapphire Preferred® Card (Rates & Fees) or Chase Sapphire Reserve® (Rates & Fees).
Both of these cards earn Ultimate Rewards points that can be transferred to 14 airline and hotel partners. Or, you can redeem these Ultimate Rewards points through the Chase Travel Portal at 1.25¢ or 1.5¢ per point, respectively. Meanwhile, Freedom Unlimited cardholders only have the option to redeem earnings at 1¢ each.
However, the earnings from the Freedom Unlimited can be “combined” with the earnings from other Chase cards. That means Sapphire Reserve cardholders could use the Freedom Unlimited to effectively earn (at least) 1.5X Chase Ultimate Rewards points on all purchases.
Will this amazing opportunity go away?
I got a chance to talk with BJ Mahoney—the General Manager of Chase Freedom—about the changes to the Freedom Unlimited. I made sure to ask if Freedom Unlimited cardholders will still be able to combine earnings with points earned through the Sapphire Preferred and Sapphire Reserve.
Thankfully, Chase is leaving this option intact. Cardholders will still be able to combine their earnings between the Freedom Unlimited and Ultimate Rewards-earning credit cards. That means Sapphire cardholders can use the Freedom Unlimited to effectively earn 5X Ultimate Rewards points on travel booked through Chase and 3X Ultimate Rewards points on dining and drugstore purchases.
Current Freedom Unlimited Sign-Up Offer
Eligible new Freedom Unlimited cardholders can earn a $200 bonus after you spend $500 on purchases in your first 3 months from account opening.
Our Thoughts
The Freedom Unlimited was already a favorite of travelers looking to maximize their spending. The addition of 5% cashback on travel purchases through Chase Travel℠ and 3% cashback on dining and drugstore purchases is a huge boost to the value this card offers. Plus, all other purchases will still earn 1.5% cashback (or Ultimate Rewards points). That makes the Freedom Unlimited even more indispensable than before.
What do you think about the changes to the Freedom Unlimited?
For rates and fees of the cards mentioned in this post, please visit the following links: Chase Freedom Unlimited® (Rates & Fees), Chase Sapphire Preferred® Card (Rates & Fees), and Chase Sapphire Reserve® (Rates & Fees)
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