The Chase Freedom Unlimited® is a well-suited candidate for those looking to pile up cash-back rewards for a $0 annual fee. It earns a modest 1.5% cash-back rate on all purchases and elevated rewards in categories like drugstores, restaurants and select travel.
But if you want to redeem your rewards toward travel, the $95-annual-fee Chase Sapphire Preferred® Card is a better choice. Its travel perks and protections, lack of foreign transaction fees and strong sign-up bonus can take your vacation further. It offers 25% more value for your points when you book travel through Chase, and it unlocks the ability to transfer points to travel partners for potential outsized value.
Here’s how to decide whether to choose the Chase Freedom Unlimited®, the Chase Sapphire Preferred® Card — or both. (Spoiler alert: These cards make a perfect pair.)
At a glance
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Chase Freedom Unlimited® |
Chase Sapphire Preferred® Card |
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Earn an additional 1.5% cash back on everything you buy (on up to $20,000 spent in the first year) – worth up to $300 cash back! (NOTE: This offer is available when you apply through NerdWallet. If you apply directly with Chase or through a different website, you may not be eligible for this offer.) |
Earn 80,000 bonus points after you spend $4,000 on purchases in the first 3 months from account opening. That’s $1,000 when you redeem through Chase Ultimate Rewards®. |
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0% intro APR for 15 months on purchases and balance transfers, and then the ongoing APR of 19.74%-28.49% Variable APR. |
The ongoing APR is 20.74%-27.74% Variable APR. |
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Value of points when redeemed for travel through Chase |
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Why travelers will prefer the Chase Sapphire Preferred® Card
More perks and rewards toward travel
The sign-up bonus on the Chase Sapphire Preferred® Card can offer more value toward a vacation than the sign-up bonus on the Chase Freedom Unlimited®. Points are also worth 25% more with the Chase Sapphire Preferred® Card when you redeem them for travel through the Chase Ultimate Rewards® portal. Plus, holding this card can unlock the ability to transfer your points to travel partners, which can yield even higher value. If you travel enough to make the most of the card’s perks, you’ll also be able to offset the cost of the $95 annual fee.
The $50 annual credit on hotel stays purchased through Chase Ultimate Rewards® will get you more than halfway there and the ongoing rewards and bonus points on every account anniversary can potentially take care of the rest. If you’re a frequent globe-trotter, you’ll also appreciate the savings that come with not having to pay foreign transaction fees on purchases made abroad.
» SEE: How to tell if a sign-up bonus is worth it
Travel benefits and protections
You’ll want to make sure that your trip is protected if the unexpected derails your plans. With the Chase Freedom Unlimited®, you’ll only get trip cancellation and interruption insurance, and secondary rental car coverage.
But the Chase Sapphire Preferred® Card takes protections to the next level by offering trip cancellation and interruption insurance, primary rental car coverage, baggage delay insurance and trip delay reimbursement.
🤓Nerdy Tip
Though it’s billed as a cash-back card, the Chase Freedom Unlimited® actually earns Ultimate Rewards® points, which can be redeemed for cash, gift cards or travel booked through Chase at a value of 1 cent per point.
Why the Chase Freedom Unlimited® could be more appealing for some
Travel perks at no cost
The Chase Sapphire Preferred® Card offers plenty of perks for travel, but you’ll have to pay a $95 annual fee to get them. The Chase Freedom Unlimited® can offer an elevated rewards rate on travel booked through Chase Ultimate Rewards® and travel protections for a $0 annual fee. If you’re a less frequent traveler, you may appreciate the flexibility to earn rewards and protections for travel along with everyday spending categories.
A duo of introductory offers
The Chase Sapphire Preferred® Card only has one introductory offer while the Chase Freedom Unlimited® has two. You’ll get a potentially hearty sign-up offer, depending on how much you spend. Earn an additional 1.5% cash back on everything you buy (on up to $20,000 spent in the first year) – worth up to $300 cash back! (NOTE: This offer is available when you apply through NerdWallet. If you apply directly with Chase or through a different website, you may not be eligible for this offer.)
The spending threshold to earn the maximum bonus is higher, but you’ll have a longer time to earn it. And, you’re sure to at least earn a portion of the sign-up offer as long as you’re spending. It’s not like an all-or-nothing sign-up bonus that requires spending a fixed amount within a few months before you can earn it. There’s also an introductory offer that gives some breathing room on interest: Get a 0% intro APR for 15 months on purchases and balance transfers, and then the ongoing APR of 19.74%-28.49% Variable APR. The sign-up bonus can defray the cost of a vacation or a large purchase, and the long 0% intro APR period can save money on interest charges and offer a window to pay it off.
A decent base rate on all purchases
When you’re not earning rewards in specific categories with the Chase Freedom Unlimited®, you’ll earn a decent 1.5x base rate on all other purchases. Chase Sapphire Preferred® Card, on the other hand, earns just 1x points on all purchases that aren’t in boosted categories.
Which card (or cards) should you get?
If you appreciate having some travel perks for the occasional vacation, the duality of the Chase Freedom Unlimited® can offer some of the benefits of a travel credit card and an everyday credit card for a $0 annual fee. But, if you often travel internationally, you can’t beat the value you’ll get from the Chase Sapphire Preferred® Card. The card’s long list of perks, travel protections and features easily make up for the $95 annual fee.
For even more value toward travel, consider adding both cards to your wallet. Use the Chase Sapphire Preferred® Card for the categories that are more rewarding with that card, and use the Chase Freedom Unlimited® for a base rate of 1.5 points per dollar spent for all other purchases.
Plus, you can move points earned from the Chase Freedom Unlimited® to your Chase Sapphire Preferred® Card and make them more valuable: Either transfer those points to Sapphire travel partners or redeem them for travel through Chase at a 25% higher value. By pairing these cards, you’ll earn more on your purchases and your points will be more valuable when you redeem them for travel.
