Chase Sapphire Preferred vs Freedom Unlimited: Which Card Wins?
Choosing the right credit card can feel like navigating a maze. With so many options, it’s easy to get lost in the details. But what if you could unlock significant rewards and benefits while simplifying your spending?
This comparison dives deep into two popular contenders: the Chase Sapphire Preferred card and the Chase Freedom Unlimited. We’ll explore their strengths, weaknesses, and ideal users to help you make an informed decision. Get ready to discover which card best aligns with your financial goals.
Whether you’re a seasoned traveler or a savvy shopper, understanding the nuances of these cards is crucial. We’ll break down everything from earning structures and redemption options to annual fees and introductory offers. Let’s find the perfect fit for your wallet!
Specs at a Glance
| Feature | CSP | CFU |
|---|---|---|
| Annual Fee | $95 | $0 |
| Rewards on Travel | 5x on travel purchased through Chase Ultimate Rewards®; 2x on all other travel | 3% on travel |
| Rewards on Dining | 3x | 3% on dining |
| Rewards on Groceries | 1x (excluding Target, Walmart) | 3% on grocery stores (excluding Target, Walmart) |
| Rewards on Other Purchases | 1x | 1.5% |
| Welcome Bonus | Earn 60,000 bonus points after spending $4,000 on purchases in the first 3 months from account opening. | Earn a $200 bonus after spending $500 on purchases in the first 3 months from account opening. |
| Intro APR on Purchases | N/A | 0% Intro APR for 15 months from account opening |
| Intro APR on Balance Transfers | N/A | 0% Intro APR for 15 months from account opening |
| Foreign Transaction Fee | None | 3% |
| Travel Benefits | Trip cancellation/interruption insurance, baggage delay insurance | None |
| Purchase Protection | Yes | Yes |
| APR (Variable) | 21.49% – 28.49% | 20.49% – 29.24% |
Feature-by-Feature Breakdown
Annual Fee
- Chase Sapphire Preferred Card: $95 annual fee. Offers ongoing value through its rewards program and travel benefits, but this is a cost to consider each year.
- Chase Freedom Unlimited: $0 annual fee. Makes it an attractive option for those seeking a card with no annual cost, but this means potentially fewer perks.
- Winner: Freedom Unlimited
Rewards on Travel
- Chase Sapphire Preferred Card: Earns 5x points on travel purchased through Chase Ultimate Rewards, 2x points on other travel purchases, and 1x point on all other purchases. Great for frequent travelers.
- Chase Freedom Unlimited: Earns 5% cash back on travel purchased through Chase Ultimate Rewards, and 1.5% cash back on all other purchases. A solid option for travel, but lacks the same multipliers.
- Winner: Sapphire Preferred
Rewards on Dining
- Chase Sapphire Preferred Card: Earns 3x points on dining, and 1x point on all other purchases. Great for those who dine out often.
- Chase Freedom Unlimited: Earns 3% cash back on dining, and 1.5% cash back on all other purchases. A solid option for dining, and offers cashback.
- Winner: Sapphire Preferred
Rewards on Other Spending
- Chase Sapphire Preferred Card: Earns 1x point on all other purchases.
- Chase Freedom Unlimited: Earns 1.5% cash back on all other purchases. Offers a simple and attractive flat rate.
- Winner: Freedom Unlimited
Sign-Up Bonus
- Chase Sapphire Preferred Card: Offers a sign-up bonus when you spend a certain amount within the first few months. This can provide significant rewards initially.
- Chase Freedom Unlimited: Offers a sign-up bonus when you spend a certain amount within the first few months. This helps offset other costs.
- Winner: It depends on the current offers, review each card’s offer.
Redemption Options
- Chase Sapphire Preferred Card: Points can be redeemed for travel through Chase Ultimate Rewards at a higher value, transferred to travel partners, or redeemed for cash back. Offers flexibility.
- Chase Freedom Unlimited: Rewards are earned as cash back or can be used to pay for purchases. Offers ease and simplicity.
- Winner: Sapphire Preferred
Travel Benefits
- Chase Sapphire Preferred Card: Includes travel insurance, such as trip cancellation/interruption insurance, and primary car rental insurance. Provides valuable protection.
- Chase Freedom Unlimited: Offers limited travel benefits compared to the Sapphire Preferred.
- Winner: Sapphire Preferred
Foreign Transaction Fees
- Chase Sapphire Preferred Card: No foreign transaction fees. Makes it suitable for international travel and purchases.
- Chase Freedom Unlimited: No foreign transaction fees. Also suitable for international travel and purchases.
- Winner: Tie
Winner by Category
| Category | Winner |
|---|---|
| Annual Fee | Chase Freedom Unlimited |
| Rewards on Travel Purchased Through Chase | Chase Sapphire Preferred |
| Rewards on Dining | Tie |
| Rewards on Groceries | Chase Freedom Unlimited |
| Rewards on All Other Purchases | Chase Freedom Unlimited |
| Welcome Bonus | Chase Sapphire Preferred (Higher Value) |
| Travel Benefits | Chase Sapphire Preferred |
| Foreign Transaction Fees | Chase Sapphire Preferred |
What They Have in Common
- Earning Rewards: Both cards earn rewards on every purchase, providing a percentage back or points.
- Chase Ultimate Rewards: Both cards allow you to earn and redeem Chase Ultimate Rewards points, although the redemption values differ.
- No Foreign Transaction Fees: The Chase Sapphire Preferred card has no foreign transaction fees, and the Chase Freedom Unlimited card does not have foreign transaction fees.
- Mobile Wallet Compatibility: Both cards are compatible with mobile wallets like Apple Pay and Google Pay.
- Fraud Protection: Both cards offer fraud protection, protecting cardholders from unauthorized charges.
- Access to Chase Offers: Both cards provide access to Chase Offers, which can provide discounts and bonus rewards at select merchants.
Chase Sapphire Preferred Card Vs Chase Freedom Unlimited Buying Guide
Earning Rewards
The Chase Sapphire Preferred Card offers a robust rewards structure, particularly in travel and dining categories. Cardholders earn 5x points on travel purchased through Chase Ultimate Rewards, 3x points on dining, select streaming services, and online grocery purchases, and 1x point on all other purchases. The Freedom Unlimited card offers a simpler approach, with 3% cash back on dining and drugstores, 5% cash back on travel purchased through Chase Ultimate Rewards, and an unlimited 1.5% cash back on all other purchases. This makes the Sapphire Preferred a better choice for maximizing rewards in specific spending categories, while the Freedom Unlimited provides a more straightforward earning potential.
Redemption Options
Both cards offer flexible redemption options, but the Sapphire Preferred Card provides enhanced value. Points earned with the Sapphire Preferred can be redeemed for travel through Chase Ultimate Rewards at a 25% premium, effectively increasing their value. Points can also be transferred to airline and hotel partners, potentially unlocking even greater value. The Freedom Unlimited offers cash back redemption at a 1:1 ratio, and points can also be used for travel through Chase Ultimate Rewards. This flexibility makes both cards attractive, but the Sapphire Preferred provides superior value for travel enthusiasts.
Annual Fees & Benefits
The Chase Sapphire Preferred Card has an annual fee, which is offset by the value of its benefits. These benefits include a $50 annual hotel credit, trip cancellation/interruption insurance, and primary auto rental collision damage waiver. The Freedom Unlimited card has no annual fee, making it a more budget-friendly option. While it lacks some of the premium benefits of the Sapphire Preferred, it still offers valuable perks like purchase protection and extended warranty. The best choice depends on your spending habits and willingness to pay an annual fee.
Introductory Offers
Both cards frequently offer attractive introductory bonuses to new cardholders. These bonuses can significantly boost your rewards earnings in the first few months of card membership. The Sapphire Preferred typically features a higher bonus, reflecting its premium status. The Freedom Unlimited’s bonus is usually smaller but still substantial, especially considering its lack of an annual fee. Always compare the current offers and consider the spending requirements to determine which card provides the best initial value for your spending habits. These bonuses are a crucial factor when choosing between the cards.
Travel Perks & Insurance
The Chase Sapphire Preferred Card excels in travel-related benefits. It provides trip cancellation/interruption insurance, which can reimburse you for non-refundable travel expenses due to covered events. It also offers primary auto rental collision damage waiver coverage, saving you money on rental car insurance. The Freedom Unlimited card, while still offering travel benefits such as purchase protection, doesn’t provide these specific travel insurances. This makes the Sapphire Preferred a better choice for frequent travelers who value comprehensive protection and peace of mind when traveling internationally or domestically.
Overall Value Proposition
The Chase Sapphire Preferred Card offers a premium experience with its higher rewards rates in key spending categories, enhanced redemption options, and valuable travel benefits. It’s best suited for individuals who travel frequently and are willing to pay an annual fee to maximize rewards. The Chase Freedom Unlimited is a strong contender for those seeking a card with no annual fee, offering solid rewards on everyday spending. It’s a great choice for those who want simplicity and flexibility in their rewards program, without the commitment of an annual fee. The best card depends on individual spending habits and priorities.
Who Should Buy What?
Buy Chase Sapphire Preferred Card If…
- You travel frequently and want to maximize rewards on travel and dining.
- You’re willing to pay an annual fee for premium travel benefits and higher earning rates.
- You plan to redeem points for travel through Chase Ultimate Rewards for potentially higher value.
- You want travel insurance and purchase protection.
Buy Chase Freedom Unlimited If…
- You prefer a card with no annual fee.
- You want a simple rewards structure with a high rate on everyday spending categories like dining and groceries.
- You want a card that earns a flat rate on all other purchases.
- You want a card with an introductory APR offer.
Frequently Asked Questions
What is the difference between the Chase Sapphire Preferred and Chase Freedom Unlimited?
The Chase Sapphire Preferred Card has an annual fee and focuses on travel and dining rewards with bonus categories, including travel booked through Chase. The Freedom Unlimited has no annual fee and provides a flat rate of cash back on all purchases, with bonus categories on dining and drugstores. The Sapphire Preferred offers better travel perks and redemption value, while the Freedom Unlimited is simpler and more accessible.
How do I redeem rewards points?
With both cards, you can redeem points for cash back, statement credits, gift cards, or merchandise. The Sapphire Preferred Card offers a better redemption value for travel through Chase Ultimate Rewards, with a 25% increase in point value. You can also transfer points to airline and hotel partners for potentially greater value. The Freedom Unlimited provides a straightforward redemption process, primarily for cash back at a 1:1 ratio.
Is there an annual fee for these cards?
Yes, the Chase Sapphire Preferred Card has an annual fee. The annual fee is designed to offset the value that you receive from the card’s rewards and benefits. The Chase Freedom Unlimited Card has no annual fee, making it a more budget-friendly option. This is a significant difference to consider when deciding which card is best for your needs and spending habits.
Which card is better for travel rewards?
The Chase Sapphire Preferred Card is generally better for travel rewards. It offers a higher bonus on travel purchases through Chase Ultimate Rewards, and cardholders can transfer points to airline and hotel partners for potentially greater value. The Freedom Unlimited also offers travel rewards, but the Sapphire Preferred provides a more comprehensive travel experience, and often offers better redemption rates.
What credit score do I need to get approved?
Both cards typically require good to excellent credit scores for approval. A credit score of 670 or higher is generally recommended, although approval depends on a variety of factors. The specific credit score required can vary based on your overall credit profile, including your credit history, income, and debt-to-income ratio. Checking your credit score before applying is a good idea.
Can I have both cards?
Yes, it is possible to have both the Chase Sapphire Preferred and the Chase Freedom Unlimited cards. Having both cards can potentially maximize your rewards earnings, as you can use the Freedom Unlimited for everyday spending and the Sapphire Preferred for travel and dining, or for purchases that fall within the bonus categories. However, be mindful of your overall credit utilization.
How do I apply for these cards?
You can apply for the Chase Sapphire Preferred and Chase Freedom Unlimited cards online through the Chase website. You’ll need to provide personal information, including your name, address, income, and employment details. You can also apply in person at a Chase branch. Ensure you meet the eligibility requirements, including the credit score, before applying for either card.
Final Verdict
Both the Chase Sapphire Preferred and the Chase Freedom Unlimited cards offer compelling benefits. The Sapphire Preferred is better for those who prioritize travel rewards and are willing to pay an annual fee for enhanced benefits and higher earning potential, especially on travel and dining. The Freedom Unlimited is excellent for everyday spending with no annual fee and straightforward cashback. The best choice depends on your spending habits and travel frequency.
Winner: Chase Sapphire Preferred Card