Chase Sapphire Preferred vs. Freedom Unlimited: Which Is Best?
Choosing the right credit card can feel like navigating a maze. With so many options, how do you know which one is the perfect fit for your spending habits and financial goals? This comparison cuts through the noise to help you decide.
We’re diving deep into a head-to-head battle: the Chase Sapphire Preferred® Card versus the Chase Freedom Unlimited®. Both cards offer compelling benefits, but they cater to different types of consumers. Understanding their strengths and weaknesses is key to making a smart decision.
Whether you’re a travel enthusiast seeking rewards or a cashback aficionado looking for everyday savings, this guide will provide a clear breakdown. We’ll examine their rewards structures, annual fees, and other perks to help you determine which card reigns supreme for your needs. Let’s explore the world of credit card rewards!
Specs at a Glance:
| Feature | Chase Preferred | Freedom Unlimited |
|---|---|---|
| Rewards on Travel | Yes | Yes |
| Rewards on Dining | Yes | Yes |
| Rewards on Streaming Services | No | Yes |
| Rewards on Gas | No | No |
| Intro APR on Purchases | Yes | Yes |
| Intro APR on Balance Transfers | Yes | Yes |
| Foreign Transaction Fees | Yes | Yes |
| Annual Fee | Yes | No |
| Sign-Up Bonus | Yes | Yes |
| Redemption Options | Multiple | Multiple |
| Purchase Protection | Yes | Yes |
| Travel Insurance | Yes | No |
Feature-by-Feature Breakdown
Annual Fee
- Chase Preferred: Has an annual fee of $95. This fee provides access to premium rewards and benefits, but it can offset rewards earned if spending is low. Consider if the benefits outweigh the cost.
- Freedom Unlimited: Has no annual fee. This makes it a cost-effective option for those who want to avoid annual fees and still earn rewards. It’s a great choice for casual spenders.
- Winner: freedom unlimited
Rewards Rate on Travel & Dining
- Chase Preferred: Earns 5x points on travel purchased through Chase Ultimate Rewards, and 3x points on dining, plus select streaming services. This is excellent for frequent travelers and diners. However, not all travel purchases qualify.
- Freedom Unlimited: Earns 3% cash back on dining and travel purchased through Chase Ultimate Rewards. This is a solid rate for general travel, but not as high as the Preferred on travel booked through Chase.
- Winner: chase preferred
Rewards Rate on General Spending
- Chase Preferred: Earns 1x point per dollar on all other purchases. While not the highest rate, it still contributes to earning rewards.
- Freedom Unlimited: Earns 1.5% cash back on all other purchases. A higher rate than the Preferred for non-bonus categories.
- Winner: freedom unlimited
Sign-Up Bonus
- Chase Preferred: Offers a substantial sign-up bonus, often worth hundreds of dollars, after meeting a spending requirement. This can significantly boost the initial value.
- Freedom Unlimited: Offers a sign-up bonus, but it is typically less than the Preferred. Still, it provides a nice initial reward boost.
- Winner: chase preferred
Travel Benefits
- Chase Preferred: Offers trip cancellation/interruption insurance, baggage delay insurance, and other travel protections. This provides significant peace of mind for travelers.
- Freedom Unlimited: Offers limited travel benefits compared to the Preferred. It has some basic protections, but nothing as comprehensive.
- Winner: chase preferred
Purchase Protection & Extended Warranty
- Chase Preferred: Provides purchase protection (for items damaged or stolen) and extended warranty coverage, adding value to purchases.
- Freedom Unlimited: Offers purchase protection and extended warranty, but the coverage is less comprehensive than the Preferred.
- Winner: chase preferred
Interest Rate (APR)
- Chase Preferred: Typically has a higher APR than the Freedom Unlimited. Balances can accrue interest quickly if not paid in full.
- Freedom Unlimited: Generally has a lower APR than the Preferred. However, this is still subject to creditworthiness.
- Winner: freedom unlimited
Redemption Options
- Chase Preferred: Points can be redeemed for travel through Chase Ultimate Rewards at a higher value, as well as for cash back, gift cards, and more. Flexibility is a key benefit.
- Freedom Unlimited: Rewards are earned as cash back and can be redeemed in various ways, including statement credits, direct deposit, and gift cards. Simplicity is a key benefit.
- Winner: chase preferred
Winner by Category:
| Category | Winner |
|---|---|
| Rewards on Travel | Chase Sapphire Preferred |
| Rewards on Dining | Chase Sapphire Preferred |
| Rewards on Streaming Services | Chase Freedom Unlimited |
| Annual Fee | Chase Freedom Unlimited |
| Overall Value | (Depends on Spending Habits) |
What They Have in Common:
- Rewards on Travel: Both cards offer rewards on travel purchases, allowing cardholders to earn points or cash back when booking flights, hotels, and other travel expenses. This is a key benefit for frequent travelers.
- Rewards on Dining: Both cards provide rewards on dining purchases, making them attractive options for people who frequently eat at restaurants or order takeout. This helps cardholders save money on their meals.
- Introductory Apr: Both cards offer introductory 0% APR periods on purchases and balance transfers, giving cardholders a chance to save on interest charges. This can be beneficial for those looking to finance purchases or consolidate debt.
- Redemption Options: Both cards offer multiple ways to redeem rewards points or cash back, providing flexibility for cardholders. Options may include statement credits, gift cards, or travel bookings.
- Purchase Protection: Both cards include purchase protection, which can cover eligible items against damage or theft. This offers peace of mind when making purchases.
- Contactless Payments: Both cards support contactless payments, making transactions quick and convenient at participating merchants. This is a common feature in modern credit cards.
Chase Preferred Vs Freedom Unlimited Buying Guide
Understanding Your Spending Habits
Before choosing between the Chase Sapphire Preferred and the Chase Freedom Unlimited, carefully analyze your spending patterns. Consider where you spend the most money: dining, travel, or everyday purchases. The Preferred card offers higher rewards on travel and dining, making it ideal for those categories. The Freedom Unlimited provides a flat-rate earning on all purchases, which can be advantageous if your spending is diverse and spread across different categories. This initial assessment helps narrow down which card best aligns with your financial behavior.
Travel Rewards and Benefits Comparison
The Chase Sapphire Preferred excels in travel rewards. It offers a higher rate on travel purchases and includes a valuable points redemption bonus through the Chase Travel portal. While the Freedom Unlimited does not offer bonus rewards on travel, it does offer a good base rate and benefits like purchase protection. Consider your travel frequency and preferred booking methods. If you value premium travel perks and are a frequent traveler, the Preferred card is likely the superior choice for your needs.
Earning and Redeeming Points
Both cards offer different reward structures. The Sapphire Preferred earns points at a higher rate on travel and dining, while the Freedom Unlimited offers a flat-rate earning on all purchases. The Preferred card gives you more options for redemption, including transferring points to airline and hotel partners for potentially greater value. Freedom Unlimited offers cash back, which is straightforward. Evaluate whether you value maximizing redemption values or prefer the simplicity of earning cash back.
Annual Fees and Card Costs
The Chase Sapphire Preferred carries an annual fee, while the Chase Freedom Unlimited has no annual fee. This is a critical consideration. The annual fee of the Preferred card is offset by the bonus rewards categories and travel benefits. However, if you don’t spend enough in the bonus categories to justify the fee, the Freedom Unlimited’s no-fee structure might be more advantageous. Consider the long-term cost and if the rewards will outweigh the annual fee.
Credit Score Requirements
Both cards require good to excellent credit scores for approval. However, the Chase Sapphire Preferred generally has slightly stricter requirements. Ensure your credit score meets the minimum requirement before applying. Check your credit report and address any potential issues. If your credit is not quite excellent, starting with the Freedom Unlimited can be a great way to build your credit and eventually upgrade to the Preferred card.
Other Card Benefits and Perks
Beyond rewards, both cards offer various benefits. The Chase Sapphire Preferred provides trip cancellation/interruption insurance and primary auto rental collision damage waiver. The Freedom Unlimited offers purchase protection and extended warranty coverage. Evaluate which benefits are most valuable to you. Consider whether the added perks of the Preferred card, like travel insurance, justify the annual fee. Consider benefits like DoorDash credits or other offers.
Who Should Buy What?
Buy Chase Sapphire Preferred If…
- You value earning bonus rewards on travel and dining.
- You want access to travel insurance and other travel-related benefits.
- You are willing to pay an annual fee to access premium rewards and benefits.
- You spend a significant amount on travel and dining each year.
Buy Chase Freedom Unlimited If…
- You prefer a card with no annual fee.
- You want a card that offers rewards on various spending categories, including dining, and some streaming services.
- You want a card with a strong base earning rate on all purchases.
- You want a card that complements other Chase cards.
Frequently Asked Questions
What is the main difference between the Chase Sapphire Preferred and the Chase Freedom Unlimited?
The main difference lies in their reward structures and annual fees. The Sapphire Preferred offers higher rewards on travel and dining with an annual fee, while the Freedom Unlimited earns a flat rate on all purchases with no annual fee. The Preferred also offers transfer partners and additional travel benefits, making it more suited for frequent travelers.
Which card is better for travel rewards?
The Chase Sapphire Preferred is better for travel rewards. It offers higher rewards on travel purchases and allows you to transfer points to airline and hotel partners for potentially greater value. The Freedom Unlimited doesn’t have bonus categories for travel, but it provides a good base earning rate for all purchases.
What is the annual fee for each card?
The Chase Sapphire Preferred has an annual fee, while the Chase Freedom Unlimited has no annual fee. The annual fee for the Preferred card needs to be considered in your spending and reward accumulation calculations to determine its overall value and if it is right for your needs. The Freedom Unlimited is free to hold.
Can I transfer points from the Chase Freedom Unlimited to the Chase Sapphire Preferred?
Yes, if you also have a Chase Sapphire Preferred, Chase Sapphire Reserve, or Ink Business Preferred Credit Card, you can combine your Freedom Unlimited rewards with one of those cards to unlock the transfer partner benefits. This allows you to redeem points at a higher value through travel partners.
What credit score is required to get approved for these cards?
Both cards require good to excellent credit scores. While the exact minimum score varies, typically a score of 670 or higher is needed. The Sapphire Preferred might require a slightly higher score than the Freedom Unlimited. Check your credit report before applying to ensure you meet the requirements.
Which card offers better cash-back options?
The Chase Freedom Unlimited offers better cash-back options. The points earned on the Freedom Unlimited can be redeemed for statement credit or direct deposit. While the Sapphire Preferred also offers cash back, the Freedom Unlimited is generally seen as the primary cash-back card.
Is the Chase Freedom Unlimited a good starter card?
Yes, the Chase Freedom Unlimited can be a great starter card for building credit and earning rewards. It has no annual fee, which makes it a low-risk option. Furthermore, it offers a solid rewards program and various benefits, making it an excellent choice for a beginner.
Final Verdict
Choosing between the Chase Sapphire Preferred and the Freedom Unlimited depends on your spending habits and financial goals. The Sapphire Preferred is ideal for those who spend heavily on travel and dining, valuing premium benefits and higher rewards. However, if you prefer simplicity, cash back, and a no-annual-fee card, the Freedom Unlimited is the better option. Consider your spending patterns and the value of travel benefits.
Winner: Chase Freedom Unlimited