Is the new Chase Freedom Unlimited offer good for everyone?

It’s no secret that we love Chase Ultimate Rewards. And of the cards we love, the Chase Freedom Unlimited is one of our favorites. The card now has two different options for its sign-up bonus.

The Chase Freedom Unlimited typically earns 1.5% cash back on all purchases. This cash back can be turned into Chase Ultimate Rewards if the cardholder also has a Sapphire card. The Freedom Unlimited is part of the Chase Trifecta which allows me get a lot of Chase Ultimate Rewards which can be good for many different airline redemptions.

The Offers

If you use our link, you can still get a bonus of $150 after spending $500 in the first three months. This equates to 15,000 Chase Ultimate Rewards points if you have a Chase Sapphire Preferred or Chase Sapphire Reserve card.

The newer offer has no sign-up bonus, but instead rewards 3% cash back on all purchases up to $20,000 for the first calendar year of the card.

So, which offer is better for you?

The Chase Freedom Unlimited is one of the more useful cards in my wallet. I use it for all non-bonus spend.

The breaking point for this offer is whether or not you will spend $10,000 in the first year with this card. I’m going to guess the majority of readers won’t reach that threshold, but we’ll explore the math below.

Old offer: $150 Sign-up Bonus

For this article, let’s assume you’re going to turn the cash back in to Ultimate Rewards.

(Sign-up bonus: 15,000) + (1.5x X $20,000 spending) = 45,000 points

Now, let’s look at it when you spend just $10,000.

(Sign-up bonus: 15,000) + (1.5x X $10,000 spending) = 30,000 points

New offer: 3x on first $20,000

For this article, let’s assume you’re going to turn the cash back in to Ultimate Rewards.

(3x X $20,000 spending) = 60,000 points

Now, let’s look at it when you spend just $10,000.

(3x X $10,000 spending) = 30,000 points

What should you do?

As you can see from the examples above, the threshold is $10,000. If you spend $10,000 it will result in $30,000 each way. This scenario assumes that you’re only putting non-bonus spend on this credit card. The spending threshold increases if you put things like restaurants or travel on this card (assuming you have another card that gives you a bonus better than 1.5x).

Final Thoughts

If you’re going to spend less than $10,000 on the Freedom Unlimited in the next year, use our link to get the $150 sign-up bonus. If you’re going to spend more than $10,000, it makes since to use the new public offer of 3% cash back for the first 20,00 purchases.

Remember that the Chase 5/24 rule does still exist, so if you’ve been approved for five credit cards in the past 24 months, wait until you’re clear so you won’t be automatically denied this great no-annual fee card.


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