The Chase Freedom Unlimited® is updating its first-year welcome bonus for new customers once again. Here’s what you can expect upon signing up now. However, there’s a catch—you’ll need to wait a year before you can earn it.
This no-annual-fee credit card now provides an additional 1.5% cash back on $20,000 of spending during your first year, which equates to up to $300 cash back, depending on your spending categories. This represents an increase of $100 compared to the card’s previous bonus of $200 after meeting minimum spending requirements. While it’s less than the previous welcome bonus, which doubled your cash back on unlimited spending for the first year, it remains a generous offer.
Understanding Chase Freedom Unlimited’s latest bonus offer
The Chase Freedom Unlimited® was already recognized as an outstanding no-annual-fee rewards credit card, offering substantial benefits and an above-average earning potential. This new bonus enhances your rewards by providing an additional 1.5% cash back on up to $20,000 of spending during the first year of card membership. Here’s what you’ll receive during that initial year:
- 6.5% back on travel purchases made through the Chase Travel Portal (typically 5%).
- 4.5% back on dining and at drugstores (typically 3%).
- 3% back on all other eligible purchases (typically 1.5%).
Remember, your earnings won’t be matched until after the initial 12 months. For instance, let’s assume monthly expenditures of $300 on travel, $350 on dining, and $1,000 on all other expenses, totaling $19,800, just shy of the maximum bonus level. Your standard cash back for these purchases (based on rates below) would amount to $46.97 per month or $563.64 annually. With the bonus welcome reward, you’d accumulate $783 for the first year, an additional $219.36.
That translates to $43.50 per month, followed by an impressive $522 bonus after 12 months.
Following the initial year (or $20,000 of spending), you’ll continue earning rewards at the standard rates:
- 5% back on travel booked through the Chase Ultimate Rewards®.
- 3% back on dining and at drugstores, including takeout and eligible delivery services.
- 1.5% back on all other purchases.
You have the option to receive your rewards as a statement credit or a direct deposit into most U.S. checking and savings accounts. There’s no minimum spending required to receive rewards, and as long as your account remains active, the rewards won’t expire.
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Pair the Chase Freedom Unlimited with other Chase cards to unlock your rewards potential
It’s important to recognize that although Chase markets the Chase Freedom Unlimited® as a cash back credit card, it actually earns Chase Ultimate Rewards® points, not cash. These points can be redeemed in various ways, such as for cash at a rate of 1 cent each, for gift cards at a rate of 1 cent each (typically), or towards purchases on Amazon at a rate of 0.8 cents each.
However, you also have the option to transfer the points earned with the Chase Freedom Unlimited® to airline and hotel loyalty programs for complimentary travel if you hold one of the following Ultimate Rewards–earning cards:
- Ink Business Preferred® Credit Card
- Chase Sapphire Preferred® Card
- Chase Sapphire Reserve®
For instance, you could transfer 25,000 Chase points to Hyatt for five nights at a low-level Hyatt hotel, which often costs more than $100 per night. This would yield you more than $500 for your points—double the value you’d receive if you had simply redeemed those 25,000 points for cash.
Do you qualify?
This cash-back match offer is exclusively available for new applicants. Existing cardholders won’t have their rewards doubled. However, there’s a workaround—you can apply for the card again by “product changing” your current Chase Freedom Unlimited® to another card, such as the Chase Freedom Flex℠ or the Chase Sapphire Preferred® Card. After waiting a few days, you can then apply for a new Chase Freedom Unlimited® to access the current bonus.
Additionally, Chase enforces an application restriction known as the “5/24 rule.” If you’ve opened five or more credit cards from any bank within the past 24 months (excluding most small business credit cards), you won’t be eligible to open the Chase Freedom Unlimited®.
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Alternative cards
If the Chase Freedom Unlimited® isn’t the right fit for you or if you don’t qualify for it, there are still alternative options available.
The no-annual-fee Chase Freedom Flex offers 5% cash back on rotating bonus categories (up to $1,500 in spending each quarter, then 1%) after activation. Currently, the card’s bonus categories include PayPal, wholesale clubs, and select charities. Additionally, you’ll earn:
- 5% back on travel booked through the Chase Travel Portal.
- 3% back on dining and at drugstores.
- 1% back on all other eligible purchases.
Furthermore, the card features a $200 welcome bonus after spending $500 on purchases within the first three months of account opening.
What’s even more advantageous is that the Chase Freedom Flex earns the same rewards currency as the Chase Freedom Unlimited: Chase Ultimate Rewards points. Therefore, if you hold an eligible Ultimate Rewards–earning card (such as the Chase Sapphire Preferred), you can convert your rewards into airline miles and hotel points for significant value. Additionally, the Freedom Flex offers its own $200 welcome bonus after spending $500 in the first three months.
Lift your reward points for a year with Chase Freedom Unlimited’s welcome bonus
The latest bonus for the Chase Freedom Unlimited® provides an extra 1.5% cash back on $20,000 of spending during your first year, potentially worth up to $300 cash back. Understanding how to convert these bonus points using an Ultimate Rewards-earning card can lead to even greater rewards, provided you know the most effective ways to utilize the points.
Chase Freedom Unlimited®
Credit score:Excellent, Good
APR:20.49% – 29.24% Variable
Annual fees:$0
Welcome offer:
Earn an extra 1.5% on everything you buy (on up to $20,000 spent in the first year) — worth up to $300 cash back. That’s 6.5% on travel purchased through Chase Ultimate Rewards®, 4.5% on dining and drugstores, and 3% on all other purchases.
The Chase Freedom Unlimited® stands out as a dependable flat-rate earnings card, despite its lack of an annual fee. While the 1.5% cash back may not appear remarkable initially, its value increases significantly when paired with other Chase rewards cards that offer higher redemption rates.
This card is ideal for everyday expenditures, whether for routine doctor copays or substantial purchases at big box stores. It can be particularly advantageous for cardmembers seeking to maximize their rewards on day-to-day spending.
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rewards
For the first year, up to $20,000 in spending, the Chase Freedom Unlimited® offers:
- 6.5% cash back on travel booked through Chase Ultimate Rewards®.
- 4.5% cash back on purchases at drugstores and dining at restaurants (including takeout and delivery services).
- 3% cash back on all other purchases.
After reaching $20,000 in spending or the first year, the rewards structure changes to:
- 5% cash back on travel booked through Chase Ultimate Rewards®.
- 3% cash back on drugstore purchases and dining at restaurants (including takeout and delivery services).
- 1.5% cash back on all other purchases.
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