Chase Freedom Unlimited vs. 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 to the Chase ecosystem, you’re in good company. Two popular contenders often top the list: the Chase Freedom Unlimited and the Chase Sapphire Preferred.
Both cards offer compelling benefits, but they cater to different spending habits and financial goals. The Chase Freedom Unlimited is a cash-back powerhouse, perfect for everyday spending and building rewards without an annual fee. On the other hand, the Chase Sapphire Preferred opens the door to travel rewards and premium perks, but comes with an annual fee to consider.
This comparison delves deep into the features of both cards, helping you decide which one best aligns with your lifestyle and spending patterns. We’ll explore their rewards structures, benefits, and potential drawbacks, equipping you with the knowledge to make an informed decision between the Chase Freedom Unlimited and the Chase Sapphire Preferred.
Specs at a Glance
| Feature | Chase Freedom Unlimited | Chase Sapphire Preferred |
|---|---|---|
| Rewards Rate on Dining | 3% | 3x points |
| Rewards Rate on Travel | 5% on travel through Chase Ultimate Rewards | 5x points on travel through Chase Ultimate Rewards |
| Rewards Rate on Drugstores | 3% | N/A |
| Introductory APR on Purchases | 0% for 15 months | N/A |
| Introductory APR on Balance Transfers | 0% for 15 months | N/A |
| Foreign Transaction Fee | 3% | None |
| Annual Fee | $0 | $95 |
| Welcome Bonus | Yes | Yes |
| Points Value | 1 cent per point | 1.25 cents per point when redeemed for travel through Chase Ultimate Rewards |
| Primary Car Rental Insurance | No | Yes |
| Purchase Protection | Yes | Yes |
| Trip Cancellation/Interruption Insurance | No | Yes |
Feature-by-Feature Breakdown
Rewards Structure
- Chase Freedom Unlimited: Earns 1.5% cash back on all purchases, plus 5% cash back on travel purchased through Chase Ultimate Rewards, 3% on dining and drugstores. A good all-around card with simple rewards. Lacks bonus categories for non-travel spending.
- 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 1x point on all other purchases. Offers higher rewards in specific categories, but requires more spending to maximize value.
- Winner: Preferred
Sign-Up Bonus
- Chase Freedom Unlimited: Offers a sign-up bonus, which can vary. Check the current offer for specifics. A good way to quickly earn rewards. Bonus amount can be lower than Preferred.
- Preferred: Offers a sign-up bonus, typically higher than the Freedom Unlimited. Check the current offer for specifics. Provides a substantial initial boost to points.
- Winner: Preferred
Annual Fee
- Chase Freedom Unlimited: No annual fee. A great option for those who want to avoid annual fees.
- Preferred: Has an annual fee. Can offset the value of rewards earned if not used strategically.
- Winner: Freedom Unlimited
Foreign Transaction Fees
- Chase Freedom Unlimited: No foreign transaction fees. Good for international travel.
- Preferred: No foreign transaction fees. Good for international travel.
- Winner: Tie
Intro APR on Purchases
- Chase Freedom Unlimited: Offers a 0% introductory APR on purchases for a certain period. Provides flexibility to finance purchases interest-free.
- Preferred: Offers a 0% introductory APR on purchases for a certain period. Provides flexibility to finance purchases interest-free.
- Winner: Tie
Intro APR on Balance Transfers
- Chase Freedom Unlimited: May offer a 0% introductory APR on balance transfers for a certain period. Useful for transferring high-interest balances.
- Preferred: May offer a 0% introductory APR on balance transfers for a certain period. Useful for transferring high-interest balances.
- Winner: Tie
Redemption Options
- Chase Freedom Unlimited: Cash back, statement credit, travel through Chase Ultimate Rewards, gift cards, and more. Offers flexible redemption options.
- Preferred: Cash back, statement credit, travel through Chase Ultimate Rewards (with potential for higher value), gift cards, and more. Travel redemption can offer better value.
- Winner: Preferred
Additional Perks
- Chase Freedom Unlimited: Includes benefits like purchase protection, extended warranty, and travel accident insurance. Offers basic benefits.
- Preferred: Includes benefits like purchase protection, extended warranty, travel accident insurance, and trip cancellation/interruption insurance. Offers a slightly better suite of benefits.
- Winner: Preferred
Winner by Category
| Category | Winner |
|---|---|
| Rewards Rate on Dining | Chase Sapphire Preferred |
| Rewards Rate on Travel | Chase Sapphire Preferred |
| Annual Fee | Chase Freedom Unlimited |
| Introductory APR | Chase Freedom Unlimited |
| Foreign Transaction Fees | Chase Sapphire Preferred |
| Travel Benefits | Chase Sapphire Preferred |
| Overall Value (for No Annual Fee) | Chase Freedom Unlimited |
What They Have in Common
- Earning Ultimate Rewards Points: Both cards allow you to earn Chase Ultimate Rewards points, providing flexibility in how you redeem them.
- Fraud Protection: Both cards offer fraud protection, safeguarding your account from unauthorized charges.
- Contactless Payments: Both cards support contactless payments, allowing for quick and secure transactions.
- Mobile App Access: Both cards provide access to the Chase mobile app for managing your account, viewing transactions, and making payments.
- Global Acceptance: Both cards are widely accepted worldwide, offering convenience for international travel.
- No Penalty Apr: Neither card has a penalty APR, so you don’t get charged more for late payments.
Chase Freedom Unlimited Vs Preferred Buying Guide
Earning Rewards
The Chase Freedom Unlimited offers a straightforward rewards structure, earning 1.5% cash back on all purchases, making it simple to understand and maximize rewards. It also provides elevated rewards in select categories like travel booked through Chase Ultimate Rewards, dining, and drugstores. This versatility makes it a strong choice for everyday spending. The Preferred card, while lacking the 1.5% baseline, offers higher rewards on categories like travel and dining, which can be advantageous for those who spend a lot in these areas. Consider your spending habits to determine which card maximizes your earnings.
Annual Fees and Costs
The Chase Freedom Unlimited has no annual fee, a significant benefit for budget-conscious consumers. This means you won’t incur yearly charges just for owning the card. The Preferred, however, has an annual fee. While the Preferred’s perks might offset the fee for some, it’s crucial to assess whether the benefits justify the cost. Factor in the value of travel credits, bonus rewards, and other features to determine the card’s overall value proposition. Consider how frequently you’ll utilize the benefits to justify the fee.
Introductory Offers and Bonuses
Both cards often come with introductory offers, such as a signup bonus after meeting a spending requirement. These bonuses can provide a significant boost to your initial rewards earnings. The bonus amounts and spending requirements vary, so compare current offers. Consider the ease of meeting the spending threshold and the value of the bonus relative to your spending habits. These offers can be a deciding factor for new cardholders looking for immediate value.
Travel Benefits and Perks
The Chase Sapphire Preferred offers more comprehensive travel benefits than the Freedom Unlimited. These include trip cancellation/interruption insurance, baggage delay insurance, and primary rental car coverage. These features can provide peace of mind and financial protection while traveling. The Freedom Unlimited offers some travel protections, but to a lesser extent. Evaluate how often you travel and the value you place on these protections when choosing a card.
Spending Habits and Lifestyle
Consider your spending patterns and lifestyle when deciding. The Freedom Unlimited is excellent for general spending due to its flat-rate rewards. If you frequently dine out, travel, and book hotels and flights, the Preferred might be more rewarding because of its bonus categories. Analyze your past spending to project future rewards. Think about which card best aligns with your spending habits to maximize your rewards potential and minimize costs.
Credit Score and Eligibility
Both cards typically require good to excellent credit scores for approval. However, the Preferred generally requires a higher credit score. If your credit is borderline, the Freedom Unlimited might be easier to obtain. Check your credit report before applying to assess your chances of approval. Consider that approval also depends on other factors like income and existing debt. Maintaining a good credit score is important for both cards.
Who Should Buy What?
Buy Chase Freedom Unlimited If…
- You want a card with no annual fee.
- You want a card with a strong rewards rate on everyday spending categories like dining and drugstores.
- You’re looking for an introductory 0% APR on purchases and balance transfers.
- You don’t travel often and are not concerned about travel perks.
Buy Chase Sapphire Preferred If…
- You travel frequently and want to earn bonus rewards on travel purchases.
- You value the ability to transfer points to travel partners for potentially higher value.
- You want access to travel insurance and other travel-related benefits.
- You’re willing to pay an annual fee for premium benefits.
Frequently Asked Questions
What is the primary difference in reward structures?
The Chase Freedom Unlimited offers a flat 1.5% cash back on all purchases, with bonus categories for travel booked through Chase Ultimate Rewards, dining, and drugstores. The Preferred provides higher rewards on travel and dining. The Preferred’s structure is optimized for those who travel and eat out more often. The flat-rate Freedom Unlimited is simpler and rewards all spending.
Does the Chase Freedom Unlimited have an annual fee?
No, the Chase Freedom Unlimited has no annual fee, making it a cost-effective option for many cardholders. This is a significant advantage, particularly for those who prefer to avoid annual charges on their credit cards. This feature allows you to earn rewards without incurring yearly expenses, contributing to the card’s overall value proposition.
What are the main travel benefits of the Chase Sapphire Preferred?
The Chase Sapphire Preferred offers a suite of travel benefits including trip cancellation/interruption insurance, baggage delay insurance, and primary rental car coverage. These protections provide financial coverage for unexpected travel disruptions. These are not standard benefits on all credit cards, adding significant value for frequent travelers. It can provide peace of mind during your travels.
Which card is better for everyday spending?
The Chase Freedom Unlimited is generally better for everyday spending due to its 1.5% cash back on all purchases, including gas, groceries, and other categories. This makes it an easy choice for maximizing rewards on any purchase. The Preferred is better for those who spend more on dining and travel. However, the Freedom Unlimited simplifies the process.
Can I transfer points earned on the Chase Sapphire Preferred?
Yes, one of the significant advantages of the Chase Sapphire Preferred is the ability to transfer points to a variety of airline and hotel partners. This enables you to redeem your points for potentially higher value rewards, such as premium cabin flights or luxury hotel stays. This is an advantage over the Freedom Unlimited card.
What credit score do I need to get either card?
Both cards typically require good to excellent credit. However, the Chase Sapphire Preferred often requires a slightly higher credit score than the Chase Freedom Unlimited. A credit score in the range of 670 and above is generally considered to be excellent. Always check your credit score and history before applying to ensure you meet the requirements.
Which card offers better introductory bonuses?
Introductory bonuses vary over time for both cards, so it’s essential to compare current offers. Both cards frequently offer signup bonuses after meeting a spending requirement within a specified timeframe. The value of these bonuses can significantly impact the card’s overall value. Check the current offers for both cards before making a decision.
Final Verdict
The Chase Freedom Unlimited excels for its simplicity and lack of an annual fee, making it a strong choice for everyday spending with a versatile rewards structure. However, the Chase Sapphire Preferred offers superior travel benefits and a higher earning potential on travel and dining, providing more value for frequent travelers. The best choice depends on your spending habits and priorities.
Winner: Chase Freedom Unlimited