Good news! You can now apply for the new Chase Freedom Unlimited card! But currently only in a Chase branch or over the phone.
To apply by phone, call 888-609-7805 Monday to Friday between 7:00 am and 10:00 pm Eastern Time.
However, you’ll be able to apply online starting April 7, 2016.
The Chase Freedom Unlimited Can Unlock Big Travel – but It’s NOT Right for Everyone!
It’s similar to the Chase Freedom (which is still available) with the same sign-up bonus and no annual fee!
And it also earns Chase Ultimate Rewards points which you can transfer to travel partners if you also have the Chase Sapphire Preferred, Chase Ink Plus, or Chase Ink Bold (no longer available) card.
But there’s ONE big difference you should know about!
I’ll explain who should consider this card and what makes it so different from the regular Chase Freedom!
What’s the Deal?
You’ll earn 15,000 Chase Ultimate Rewards points ($150) when you sign-up for the Chase Freedom Unlimited card and spend $500 on purchases in the 1st 3 months of opening your account.
And you’ll also get:
- 2,500 Chase Ultimate Rewards bonus points ($25) when you add an authorized user who makes a purchase in the 1st 3 months of opening your account
- 1.5X Chase Ultimate Rewards points (1.5% cash back) per $1 you spend on all purchases with NO limit (hence, the “Unlimited”)
- No annual fee
But it does NOT have rotating 5X Chase Ultimate Rewards points (5% cash back) quarterly bonus categories like the regular Chase Freedom card.
Instead, you’ll earn 1.5 Chase Ultimate Rewards points per $1 you spend (1.5% cash back) on ALL purchases. With NO spending limit!
You’ll Earn 1.5X Chase Ultimate Rewards Points (1.5% Cash Back) on ALL Purchases With the Chase Freedom Unlimited – With No Cap!
This could make a big difference for folks who spend the maximum of $1,500 per quarter in popular rotating 5X bonus categories, which in the past have included restaurants, gas stations, department stores, and Amazon.
That said, the regular Chase Freedom only earns 1 Chase Ultimate Rewards point per $1 (1% cash back) on non-bonus category purchases. So depending on where you spend the most, the Chase Freedom Unlimited could be a better deal.
But you can have both cards, because they’re different card products. And they’re both free to keep for the long term, because they don’t have annual fees.
Hanging on to no-annual-fee cards can increase the average age of your credit accounts and possibly boost your credit score.
Keeping No-Annual-Fee Cards Like the Chase Freedom Unlimited for the Long Term Can Potentially Improve Your Credit Score
I’ve kept the Chase Freedom in my wallet for years because I love the 5X rotating bonus categories. It’s a terrific way to earn lots of Chase Ultimate Rewards points, which I transfer to airline and hotel partners like United Airlines and Hyatt for Big Travel!
But keep in mind, Chase has tightened their application rules, and if you’ve opened ~5 or more cards in the past 24 months, it’s unlikely you’ll be approved for either card.
Regular Freedom vs Freedom Unlimited – Which Should You Choose?
If you regularly spend the maximum $1,500 per quarter on rotating 5X bonus categories, the regular Chase Freedom card is hard to beat.
That is, unless you’re a very big spender!
Here’s why. If you spend $1,500 each quarter on 5X bonus categories, you’ll earn 7,500 bonus Chase Ultimate Rewards points ($75 cash back) each quarter with the Chase Freedom.
That works out to 30,000 Chase Ultimate Rewards points ($300 cash back) per year for $6,000 in spending ($1,500 per quarter x 4).
If you spend the same $6,000 per year with the Chase Freedom Unlimited, you’ll earn 9,000 Chase Ultimate Rewards points ($90 cash back).
That’s a difference of 21,000 Chase Ultimate Rewards points (30,000 points earned with the Chase Freedom – 9,000 points earned with the Chase Freedom Unlimited).
The Chase Freedom Is the Clear Winner If You Spend Lots in Bonus Categories – Unless You’re a Very Big Spender
That said, if you only spent $6,000 in non-bonus categories with the Chase Freedom, you’d earn 6,000 Chase Ultimate Rewards points compared to 9,000 points with the Chase Freedom Unlimited. Not that big a difference!
Of course, most folks spend a mix between bonus and non-bonus categories. So it’s hard to do a side-by-side comparison for all scenarios.
The ideal situation is to have both cards.
How 1.5 Chase Ultimate Rewards Points Can Be Worth More Than 2% Cash Back
Not all points are created equal. So earning 1.5X Chase Ultimate Rewards points could be more lucrative than earning 2% cash back with other cards.
Beat 2% Cash Back at Hyatt
For example, say you transfer your points for an otherwise pricey Hyatt hotel stay where your points are worth at least 2 cents each. Then it’s like getting 3% cash back (1.5 Chase Ultimate Rewards points per $1 X 2 cents per point).
Free Flights on Southwest
Or if you have the Southwest Companion Pass, this could be a no-brainer. That’s because Southwest points are worth at least 1.43 cents each when you redeem them for flights. And with the Companion Pass you get 2 tickets for price of one.
That said, if you’re worried about Chase’s new application rules, or are limited in the number of Chase cards you can apply for, there are better Chase cards to get for Big Travel.
Decline the Sign-Up Bonus but Save a Credit Pull
The Chase Freedom Unlimited might be a good choice for folks who are about to cancel their Chase Sapphire Preferred or Slate card. Instead of canceling, ask to switch your account to a Freedom Unlimited to keep the credit line with no annual fee.
But keep in mind you will NOT earn the sign-up bonus. However, your credit score won’t temporarily dip because you’re not asking Chase for new credit. Though you can ask the representative to be certain the bank won’t perform a “hard pull.”
This may also work with the Ink Plus, Ink Bold, or Ink Cash small business cards. But Chase will likely NOT allow you to convert a Chase airline or hotel card such as the Hyatt or British Airways card to the Freedom Unlimited.
What I Dislike About Both Cards
Foreign transaction fees! Both the Freedom and Freedom Unlimited impose ~3% fee when you make purchases abroad. For that reason I always bring my Chase Sapphire Preferred. But it’d be sweet to earn 5X Chase Ultimate Rewards points while traveling outside the US!
Here’s my post for those of y’all looking for a no-annual-fee card without those pesky foreign transaction fees.
Bottom Line
The new Chase Freedom Unlimited is now open for applications over the phone or in-branch only. To apply by phone, call 888-609-7805 Monday to Friday between 7:00 am and 10:00 pm Eastern Time.
Online applications will open April 7, 2016.
Like the regular Chase Freedom (which is still available), you’ll earn 15,000 Chase Ultimate Rewards points ($150) after meeting minimum spending requirements.
But the Chase Freedom Unlimited does NOT earn 5X Chase Ultimate Rewards points (5% cash back) in quarterly rotating bonus categories. Instead, it earns 1.5X points on all purchases (1.5% cash back) with no limit.
The regular Chase Freedom is a better card for folks who spend a lot in 5X bonus categories and have typical spending habits.
Of course, you can have both cards (because they’re different card products). But keep Chase’s new application rules in mind, because if you’ve opened ~5+ cards in the past 24 months, it’s unlikely you’ll be approved for either card.
* If you liked this post, why don’t you join the 20,000+ readers who have signed-up to receive free blog posts via email (only 1 email per day!) or in an RSS reader …because then you’ll never miss another update!
