Chase Freedom Unlimited® vs. Chase Freedom Flex℠

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While Chase has offered some of the best travel and rewards credit cards on the market for years, they decided to level up even more so this year. The release of their new credit card — the Chase Freedom Flex℠ — should create new competition among card issuers trying to maintain market share. In the meantime, Chase also updated its already popular Chase Freedom Unlimited®, which has left the rewards world buzzing for weeks.

But, which of these two cash back credit cards works better for your needs? That really depends on your spending style and how much work you want to put into earning rewards.

Both cards come with no annual fee, but the Chase Freedom Flex maintains the rotating quarterly bonus categories of the old Chase Freedom card, while the Chase Freedom Unlimited offers the same 1.5 percent back for each dollar you spend. Even better, both cards have improved earnings in categories like dining and drugstore purchases, as well as travel purchases made through Chase Ultimate Rewards.

If you are considering a new cash back credit card and are wondering which of these two options to pursue, keep reading to see how they compare.

Main details

Features Chase Freedom Flex Chase Freedom Unlimited
Welcome bonus Earn a $200 bonus when you spend $500 within three months of account opening Earn a $200 bonus when you spend $500 within three months of account opening
Rewards Rate Earn 5% back on up to $1,500 spent in quarterly bonus categories after activation (then 1%), as well as 5% back on travel purchased through Chase Ultimate Rewards, 3% back on dining and drugstore purchases and 1% on everything else

**Earn 5% on Lyft rides through March of 2022

***Also earn 5% back on grocery store purchases (not including Walmart or Target) on up to $12,000 spent your first year

Earn a flat 1.5% back for each dollar you spend; also earn 5% back on travel purchased through Chase Ultimate Rewards, 3% back on dining and drugstore purchases and 1% back on everything else

**Earn 5% back on Lyft rides through March of 2022

***Also earn 5% back on grocery store purchases (not including Walmart or Target) on up to $12,000 spent your first year

Intro APR 0% APR on purchases for 15 months, followed by a variable APR of 14.99% to 23.74% 0% APR on purchases for 15 months, followed by a variable APR of 14.99% to 23.74%
Annual fee $0 $0

Chase Freedom Unlimited vs. Chase Freedom Flex highlights

Both of these cash back cards can be rewarding in their own right, but the right one for you depends on your normal spending habits and rewards goals. The following section highlights how these two cards compare in some of the most important categories.

Welcome bonus winner: Tie

Both the Chase Freedom Unlimited and Chase Freedom Flex offer the same welcome bonus amount. Once you sign up, you’ll earn $200 when you spend $500 on purchases within the first three months of account opening.

This bonus is very generous when you consider the fact that many other cash back cards with no annual fee only offer bonuses of $150 with the same minimum spending requirement.

Rewards rate winner: Chase Freedom Unlimited (but barely)

It’s hard to compare these two cards in terms of their rewards schemes, but we do believe the Chase Freedom Unlimited comes out ahead very slightly in this category due to the fact you earn 1.5 percent back on all non-bonus spending. In the meantime, the Chase Freedom Flex offers 5 percent back after activation on up to $1,500 spent in quarterly bonus categories, followed by 1 percent back on regular purchases. Also, both cards offer the same new, long-term bonus categories — 5 percent back on travel booked through Chase Ultimate Rewards and 3 percent back on dining and drugstore purchases.

If you spend a lot of money on regular purchases (i.e. utility bills, kids sports, day care, insurance, etc.) that don’t typically earn bonus rewards, then the Chase Freedom Unlimited could easily leave you with more rewards in the end. After all, earning an unlimited 50 percent more in rewards on all regular purchases has the potential to lead to a larger rewards balance.

The Chase Freedom Flex offers 5 percent back in rotating quarterly categories after activation instead, but this is capped at just $1,500 in spending per quarter (then 1 percent). This means you can only earn a maximum of $75 in bonus rewards in rotating categories four times per year.

Annual Fee winner: Tie

Both the Chase Freedom Unlimited and Chase Freedom Flex are offered with no annual fee, which makes them easy cards to keep for the long haul.

Foreign transaction fee winner: Tie

Also, note that both of these cash back cards charge a 3 percent foreign transaction fee, which can add up quickly if you travel abroad often. If you’re a frequent traveler, we suggest pairing either of these cards with the Chase Sapphire Preferred® Card, which comes with no foreign transaction fees.

By pairing these two cards, you can also pool your points in your Sapphire Preferred account for better travel redemptions through Chase or even 1:1 transfers to airline and hotel partners like Southwest Rapid Rewards, United MileagePlus, Marriott Bonvoy and IHG Rewards.

Which card earns the most?

Which of these rewards credit cards can help you earn the most cash back really depends on how much you spend each month and which categories you tend to spend the most in. The following example shows how you might end up with more rewards with one of these cards over the other.

Chase Freedom Unlimited vs. Chase Freedom Flex spending example

Imagine for a moment you use your credit card for all your regular spending and household bills. You also use your credit card to pay for all your online purchases in order to take advantage of rewards and zero liability protection. For the purpose of this example, also keep in mind that the final Chase Freedom Flex bonus categories for 2020 include purchases made on Walmart.com or through PayPal from October through December 2020.

Let’s say you use your credit card for the following purchases for the final three months of 2020:

  • $500 per month in groceries
  • $1,000 per month in utilities and other household expenses
  • $250 in monthly insurance payments
  • $1,000 total in online shopping at Walmart.com and retailers who accept PayPal

With the Chase Freedom Unlimited, you would earn $146.25 in rewards over three months — $75 in rewards for grocery spending, $45 in rewards on utilities and other household expenses, $11.25 in rewards on insurance payments and $15 in rewards on Walmart.com and PayPal purchases.

With the Chase Freedom Flex, on the other hand, you would earn $162.50 in rewards over three months — $75 in rewards on grocery spending, $30 in rewards on utilities and household expenses, $7.50 in rewards on insurance payments and $50 in rewards on Walmart.com and PayPal purchases.

This example shows how your spending and rewards might look in a quarter where you could max out the Chase Freedom Flex quarterly bonus category. However, you should keep in mind how things might look different in quarters where the bonus category doesn’t align well with your spending.

If you spend a lot more on regular, non-bonus purchases or don’t anticipate maxing out any bonus categories each quarter, then the Chase Freedom Unlimited’s 1.5 percent back on regular purchases is easily the better choice.

Why should you get the Chase Freedom Unlimited?

The Chase Freedom Unlimited comes with some pretty heft perks for a no annual fee credit card. Here are some of the reasons you should consider signing up.

Additional benefits

Once you sign up for the Chase Freedom Unlimited, you’ll get plenty of benefits outside of zero liability protection. You’ll also get purchase protection against damage or theft good for 120 days on eligible items, extended warranties on items that qualify, trip cancellation and interruption insurance, auto rental collision damage waiver, travel and emergency assistance services and more.

Redemption options

With the Chase Freedom Unlimited, you’ll qualify for flexible redemption options, including cash back, statement credits, gift cards, merchandise and travel through Chase. If you have a premier travel credit card like the Chase Sapphire Preferred or Chase Sapphire Reserve®, you can also get more value for your rewards when you use points to book with Chase or transfer points to popular Chase Ultimate Rewards airline and hotel partners.

Recommended credit score

You need good credit or better to qualify for this rewards credit card, which typically means having a FICO score of 670 or higher.

Why should you get the Chase Freedom Flex?

The Chase Freedom Flex is a World Elite Mastercard, so it comes with a handful of unique benefits when compared to the old Chase Freedom card. Here are some of the reasons you should consider signing up.

Additional benefits

The new Chase Freedom Flex comes with many of the same benefits as the Chase Freedom Unlimited, including purchase protection, extended warranties, trip cancellation and interruption insurance, auto rental collision damage waiver and travel and emergency assistance services.

You’ll also get cellphone protection when you pay your phone bill with your credit card, as well as other World Elite Mastercard benefits, including $10 in Lyft credits each time you take 5 rides in a calendar month, 5 percent in cash rewards on Boxed.com purchases, a free ShopRunner membership and more.

Redemption options

This card also lets you redeem your rewards for cash back, statement credits, merchandise, travel through Chase and more. You can also pair this card with a Chase travel credit card for superior redemption options.

Recommended credit score

You need good credit or better to qualify for this rewards credit card, which typically means having a FICO score of 670 or higher.

The bottom line

In the end, make sure to take a closer look at each card option, then decide whether you want to focus on maximizing bonus categories or earning a higher rewards rate on all regular purchases.

Also, take the time to compare all the other rewards credit cards on the market today. With some basic research, you’ll be earning cash back in no time.

The information about the Chase Freedom has been collected independently by Bankrate.com. The card details have not been reviewed or approved by the card issuer.