Chase Freedom Unlimited vs Sapphire Preferred: Which Card Wins?
Choosing the right credit card can feel overwhelming, especially with so many options promising rewards and perks. If you’re considering a new card and have narrowed your choices, you’ve likely come across the popular options of the Chase ecosystem.
This comparison dives deep into two of the most sought-after cards: the Chase Freedom Unlimited and the Chase Sapphire Preferred. Both cards offer compelling benefits, but cater to different spending habits and financial goals. Deciding which card is best for you depends on your individual needs.
We’ll analyze their rewards structures, annual fees, travel benefits, and other perks to help you make an informed decision. Whether you’re a casual spender or a frequent traveler, this guide will help you determine if the Chase Freedom Unlimited or Chase Sapphire Preferred is the perfect fit for your wallet.
Specs at a Glance
| Feature | CFU | CSP |
|---|---|---|
| Rewards Rate on Dining | 3% | 3x |
| Rewards Rate on Travel | 5% on travel purchased through Chase Ultimate Rewards | 5x |
| Rewards Rate on Drugstores | 3% | N/A |
| Rewards Rate on All Other Purchases | 1.5% | 1x |
| Introductory APR | 0% intro APR on purchases and balance transfers for 15 months | N/A |
| Foreign Transaction Fees | 3% | None |
| Annual Fee | $0 | $95 |
| Sign-Up Bonus | Earn an extra 1.5% on everything you buy (on up to $20,000 spent in the first year) | Earn 60,000 bonus points after you spend $4,000 on purchases in the first 3 months from account opening. |
| Balance Transfer | Yes | Yes |
| Credit Needed | Good to Excellent | Good to Excellent |
| Card Type | Visa | Visa |
| Travel Insurance | No | Yes |
Feature-by-Feature Breakdown
Annual Fee
- Chase Freedom Unlimited: $0 annual fee. This makes it an attractive option for those who want to avoid paying a yearly fee while still earning rewards. The lack of an annual fee allows you to keep the card open without ongoing costs, potentially boosting your credit score over time.
- Chase Sapphire Preferred: $95 annual fee. The fee provides access to premium benefits and rewards. The value of these benefits should be considered against the cost, especially for those who travel or dine out frequently.
- Winner: freedom unlimited
Rewards Rate on All Purchases
- Chase Freedom Unlimited: Earns 1.5% cash back on all purchases. This flat rate is competitive for a no-annual-fee card and simplifies earning rewards on everyday spending.
- Chase Sapphire Preferred: Earns 1 point per dollar on most purchases. While a lower base rate than Freedom Unlimited, points can be redeemed for travel through Chase Ultimate Rewards at a 25% increase in value.
- Winner: freedom unlimited
Rewards Rate on Specific Categories
- Chase Freedom Unlimited: Earns 3% cash back on dining and drugstores, and 5% cash back on travel booked through Chase Ultimate Rewards, and 3% cash back on eligible streaming services. This offers great value on common spending categories.
- Chase Sapphire Preferred: Earns 5x points on travel purchased through Chase Ultimate Rewards, 3x points on dining, select streaming services, and online grocery purchases (excluding Target, Walmart and wholesale clubs). This provides excellent rewards on travel and dining, making it ideal for those who spend heavily in these areas.
- Winner: sapphire preferred
Sign-Up Bonus
- Chase Freedom Unlimited: Offers a sign-up bonus, which can be a significant boost to your rewards earnings in the first year. The bonus amount varies but is often a cash back offer after spending a certain amount within the first few months.
- Chase Sapphire Preferred: Offers a more valuable sign-up bonus, often worth hundreds of dollars in travel or cash back, after meeting the spending requirement within the first few months. This is a key benefit for new cardholders.
- Winner: sapphire preferred
Travel Benefits
- Chase Freedom Unlimited: Offers limited travel benefits. While it earns rewards on travel booked through Chase Ultimate Rewards, it doesn’t have the same level of travel perks as the Sapphire Preferred.
- Chase Sapphire Preferred: Provides various travel benefits, including travel insurance (trip cancellation/interruption and baggage delay), and no foreign transaction fees. These benefits can save money and provide peace of mind while traveling.
- Winner: sapphire preferred
Transfer of Points
- Chase Freedom Unlimited: Points can be redeemed for cash back or gift cards, or combined with points from other Chase cards that earn Ultimate Rewards. Freedom Unlimited points alone cannot be transferred to travel partners.
- Chase Sapphire Preferred: Allows points to be transferred to Chase’s travel partners (airlines and hotels), potentially maximizing the value of your points for travel. This is a significant advantage for those who want to redeem points for premium travel experiences.
- Winner: sapphire preferred
Foreign Transaction Fees
- Chase Freedom Unlimited: No foreign transaction fees. This makes it a good option for international travel.
- Chase Sapphire Preferred: No foreign transaction fees. This is a standard feature for travel-focused cards.
- Winner: Tie
Credit Score Recommendation
- Chase Freedom Unlimited: Requires good to excellent credit. A credit score in the high 600s or 700s is generally needed.
- Chase Sapphire Preferred: Requires good to excellent credit. A credit score in the 700s is typically recommended.
- Winner: Tie
Winner by Category
| Category | Winner |
|---|---|
| Rewards Rate on Dining | Chase Sapphire Preferred |
| Rewards Rate on Travel | Chase Sapphire Preferred |
| Rewards Rate on Drugstores | Chase Freedom Unlimited |
| Rewards Rate on All Other Purchases | Chase Freedom Unlimited |
| Introductory APR | Chase Freedom Unlimited |
| Foreign Transaction Fees | Chase Sapphire Preferred |
| Annual Fee | Chase Freedom Unlimited |
| Sign-Up Bonus | Chase Sapphire Preferred |
| Travel Benefits | Chase Sapphire Preferred |
What They Have in Common
- Acceptance: Both cards are widely accepted by merchants worldwide due to their Visa network affiliation.
- Mobile Wallet Compatibility: Both cards are compatible with popular mobile payment systems like Apple Pay, Google Pay, and Samsung Pay.
- Fraud Protection: Both cards offer fraud protection, including zero liability for unauthorized charges.
- Chase Offers: Both cards provide access to Chase Offers, which allow cardholders to earn statement credits or bonus rewards at select merchants.
- Online Account Management: Both cards provide access to online account management tools, allowing cardholders to track spending, pay bills, and manage their accounts.
Chase Freedom Unlimited Vs Chase Sapphire Preferred Buying Guide
Earning Rewards
Both the Chase Freedom Unlimited and Chase Sapphire Preferred offer rewards on spending, but they differ in their earning rates. The Freedom Unlimited excels with a flat 1.5% back on all purchases, plus bonus categories like groceries and dining. The Sapphire Preferred, while offering a lower base rate, provides higher rewards on travel and dining, making it ideal for those who spend heavily in these areas. Understanding your spending habits is crucial for maximizing rewards. Consider how your spending aligns with the bonus categories for either card.
The Freedom Unlimited’s simplicity is appealing, while the Sapphire Preferred’s bonus categories can lead to significantly higher rewards for certain spending patterns. Both cards provide opportunities to earn substantial rewards, but the optimal choice depends on your individual spending profile and preferred reward categories. Analyzing your spending history helps determine which card is the better fit.
Redemption Options
Both cards offer flexible redemption options. You can redeem points for cash back, statement credits, or gift cards. However, the Chase Sapphire Preferred unlocks the ability to transfer points to travel partners, potentially boosting their value significantly. This is a key differentiator. The transfer partners include airlines and hotels, allowing for potentially free flights and stays. The Freedom Unlimited focuses on direct redemption options.
While the Freedom Unlimited’s redemption is straightforward, the Sapphire Preferred offers the potential for greater value through its transfer partners. If you plan to travel frequently, the Sapphire Preferred’s transfer capabilities are an important consideration. Consider which redemption options align better with your financial goals and spending patterns. Both offer good options, but differ in scope.
Annual Fees & Benefits
The Chase Freedom Unlimited has no annual fee, making it a cost-effective option for many. The Chase Sapphire Preferred has an annual fee, which is offset by its added benefits. These benefits include travel insurance, purchase protection, and no foreign transaction fees. The annual fee is a factor to consider when evaluating value.
The Sapphire Preferred’s benefits enhance the card’s value, particularly for travelers. The Freedom Unlimited’s lack of an annual fee makes it a great choice for those who want a rewards card without ongoing costs. Evaluate which card’s benefits and fees align with your needs and spending habits. Consider the value of these benefits relative to the annual fee.
Travel Perks & Protections
The Chase Sapphire Preferred offers a suite of travel-related benefits that the Freedom Unlimited lacks. These include trip cancellation/interruption insurance, baggage delay insurance, and auto rental collision damage waiver. These protections provide peace of mind while traveling. These benefits are not available with the Freedom Unlimited.
The Sapphire Preferred is a better choice for travelers due to its robust travel protections. These benefits can save you money and headaches if unexpected events occur. If you travel frequently, the travel benefits of the Sapphire Preferred can easily justify the annual fee. Consider the value of these protections in your travel plans.
Credit Limit & Approval
The credit limit you receive depends on your creditworthiness, income, and other factors. Generally, the Chase Sapphire Preferred requires a good to excellent credit score, while the Chase Freedom Unlimited may be accessible with a good credit score. Approval is never guaranteed. Both cards are issued by Chase.
Your credit score plays a significant role in your approval chances and credit limit. Check your credit report before applying to assess your eligibility. Ensure you meet the minimum requirements for the card you’re interested in. Research the minimum credit score for each card. Both cards require a good credit score, but the Sapphire Preferred typically requires a higher one.
Overall Value Proposition
The Chase Freedom Unlimited provides excellent value for those seeking a card with no annual fee and a straightforward rewards structure. Its 1.5% back on all purchases, plus bonus categories, makes it a strong choice. The Chase Sapphire Preferred offers a compelling value proposition for those willing to pay an annual fee and spend significantly on travel and dining.
The Sapphire Preferred’s higher rewards on travel and dining, combined with its travel benefits, can justify the annual fee. The Freedom Unlimited’s simplicity and no-fee structure make it a great choice for a wider audience. Ultimately, the best card depends on your individual spending habits and priorities. Carefully weigh these factors when making your decision.
Who Should Buy What?
Buy Chase Freedom Unlimited If…
- You want a card with no annual fee.
- You spend a lot on dining and drugstores.
- You want a card that earns rewards on all purchases, even if the rate isn’t as high as category-specific cards.
- You are looking for a card to build credit and want a 0% intro APR on purchases and balance transfers.
Buy Chase Sapphire Preferred If…
- You travel frequently and want to earn bonus rewards on travel and dining.
- You value travel benefits like trip cancellation/interruption insurance and primary auto rental collision damage waiver.
- You are willing to pay an annual fee for premium rewards and benefits.
- You want a card with a valuable sign-up bonus.
Frequently Asked Questions
What is the annual fee for each card?
The Chase Freedom Unlimited has no annual fee. The Chase Sapphire Preferred has an annual fee, which is a key factor when considering its overall value and benefits. This fee is offset by added benefits.
What are the rewards rates for each card?
The Chase Freedom Unlimited offers 1.5% back on all purchases, with bonus categories. The Chase Sapphire Preferred offers bonus rewards on travel and dining purchases. These varying rates impact overall rewards.
Can I transfer points to travel partners with either card?
Only the Chase Sapphire Preferred allows you to transfer points to travel partners, such as airlines and hotels. This feature is not available with the Chase Freedom Unlimited. This is a key differentiator.
What travel benefits does the Chase Sapphire Preferred offer?
The Chase Sapphire Preferred offers a range of travel benefits, including trip cancellation/interruption insurance, baggage delay insurance, and auto rental collision damage waiver. The Freedom Unlimited does not offer these benefits.
What credit score is required to be approved for these cards?
Both cards typically require a good to excellent credit score. The Chase Sapphire Preferred generally requires a higher credit score than the Chase Freedom Unlimited. Review your credit score.
How do I redeem my rewards points?
You can redeem points for cash back, statement credits, gift cards, or travel. The Chase Sapphire Preferred also allows you to transfer points to travel partners. Both cards offer multiple options.
Which card is better for everyday spending?
The Chase Freedom Unlimited is a good choice for everyday spending, offering a straightforward rewards structure. The Chase Sapphire Preferred is better suited for those who spend more on travel and dining. Evaluate your spending.
Final Verdict
Choosing between the Chase Freedom Unlimited and Chase Sapphire Preferred depends heavily on your lifestyle and spending habits. The Freedom Unlimited is excellent for simplicity and no annual fee. The Sapphire Preferred is ideal for those who value travel benefits and can maximize rewards in bonus categories. Both are great cards.
Winner: Chase Freedom Unlimited