New Chase Freedom card offers great rewards

There is exciting news from Chase.

There’s a new Chase Freedom card on the way and additional perks coming to the Chase Freedom Unlimited. These new perks are going to make the Chase Freedom cards arguably the best no-annual fee cards on the market.

There is going to be a new card called the “Chase Freedom Flex” (pretty cool name) and that is going to replace the Chase Freedom also informally referred to as the “Chase Freedom Classic.” (The Chase Freedom Classic will no longer be available to new applicants.)

The Chase Freedom Flex is going to maintain the rotating 5% quarterly categories but it’s going to get additional perks which include:

  • 5X on travel purchased through Chase Ultimate Rewards
  • 3X on dining
  • 3X on drugstores

The fact that you’ll be able to earn these bonus rates is pretty huge.

3X on dining is on par with the Chase Sapphire Reserve — a credit card with a $550 annual fee. Also getting 5X on travel through the Chase Travel Portal is pretty amazing since it allows you to earn 5X on big purchases like airfare similar to the Amex Platinum Card which has a $550 annual fee.

Remember the Chase Freedom Flex has no annual fee.

The Chase Freedom Flex is going to be a MasterCard and not a Visa so you will also get additional MasterCard benefits like ShopRunner, cell phone protection, etc.

Note that if you are already a Chase Freedom cardholder you will need to call in to convert your card to a Chase Freedom Flex. (You can use the product change feature on WalletFlo to keep track of this.)

You could also just apply for the Chase Freedom Flex if you are under 5/24 since it is going to come with a great welcome bonus of $200 after meeting the minimum spend $500 in the first three months.

The Chase Freedom Flex is going to be considered a separate product from the Chase Freedom but if you product change to the Flex first, you won’t get approved for the Flex when applying for it.

Also, if you have the Chase Freedom Unlimited, you can still apply for the Chase Freedom Flex as long as you are under 5/24.

The Chase Freedom Unlimited is going to maintain the 1.5X on all purchases but will also get the additional:

  • 5X on travel purchased through Chase Ultimate Rewards
  • 3X on dining
  • 3X on drugstores

In addition to those perks, keep in mind that with both Freedom cards you can also get 5% back on Lyft through March 2022 and a complimentary 3 months of DashPass.

Tip: If you feel like all of these new categories are a lot to remember, remember you can use the cheat sheet in WalletFlo to keep track of all of these things and it’s going to be much improved in the next version.

You can read more about the changes here.

The new Flex card and the new features for the Freedom Unlimited significantly upgrade the value of these no annual fee cards. I’m wondering if we will see a ripple effect with changes coming soon to the Sapphire Preferred or Sapphire Reserve.

The new benefits and new card will come September 14 so be prepared for this option in a couple of weeks.

Chase Freedom (5%) vs Chase Freedom Unlimited (3% Offer) [2020]

The Chase Freedom and the Chase Freedom Unlimited are two of the most popular cash back credit cards with no annual fee. The cards have a lot of overlapping features but also have some very distinctive features that distinguish the cards from each other. In this article, I will highlight all of the major features of these cards and talk about which cards might be best for you and why. 

Update: This offer is no longer available.

Tip: Use WalletFlo for all your credit card needs. It’s free and will help you optimize your rewards and savings!

Sign-up Bonus

Chase Freedom

The standard sign-up bonus for the Chase Freedom is $150 cash back after spending $500 in the first three months after account opening. This is a pretty decent sign-up bonus for a cash back credit card with no annual fee. (Some similar cash back cards don’t even offer sign-up bonuses.)

Chase Freedom Unlimited

The previous sign-up bonus for the Chase Freedom Unlimited was $150 cash back after spending $500 in the first three months after account opening. However, with the new offer there is no sign-up bonus offered for the Freedom Unlimited. Instead, it offers a higher return on spend which I talk about below.

Overall, if you want up-front value you’ll want to go with the Chase Freedom card but if you’re okay with earning the rewards via spend over the long-run then the Freedom Unlimited can be a good fit (but see below).

Tip: If you really want a card with up-front value the Chase Sapphire Preferred is offering a new high offer of 60,000 points after spending $4,000 in the first three months after account opening. This is worth at least $750 in travel and can take you a long way.

Bonus categories

Chase Freedom

The Chase Freedom card earns 5% back on rotating categories each quarter on up to $1,500 worth of spend. This means that if you can max out the quarterly categories, it will be possible for you to earn up to 7,500 points each quarter (or $75 cash back) on bonus spend. Everything else will earn 1% back.

There are a lot of different bonus categories that the Chase Freedom offers and you can take a look at all of those categories over the years below and read more about what counts for each category here.

2014 Calendar

  • Quarter One (Q1): Grocery stores, Movie theaters, Starbucks
  • Quarter Two (Q2): Restaurants, Lowe’s
  • Quarter Three (Q3): Gas stations, Kohl’s
  • Quarter Four (Q4): Amazon.com, Zappos.com, Department stores

2015 Calendar

  • Quarter One (Q1): Grocery stores, Movie theaters, Starbucks
  • Quarter Two (Q2): Restaurants, Bed Bath and beyond, H&M, Overstock.com
  • Quarter Three (Q3): Gas stations, Kohl’s
  • Quarter Four (Q4): Amazon.com, Zappos.com, Audible.com, Diapers.com

The final quarter with Amazon.com was special this year because it allowed you to earn 10% back on Amazon which was fantastic.

2016 Calendar

  • Quarter One (Q1): Gas stations, Local commuter transportation
  • Quarter Two (Q2): Grocery stores, Wholesale clubs
  • Quarter Three (Q3): Restaurants, Wholesale clubs
  • Quarter Four (Q4): Department stores, Drug stores, Wholesale clubs

2017 Calendar

  • Quarter One (Q1): Gas, Local commuter transportation
  • Quarter Two (Q2): Grocery stores, Drug stores
  • Quarter Three (Q3): Restaurants, Movie theaters
  • Quarter Four (Q4): Walmart, Department stores

2018 Calendar

  • Quarter One (Q1): Gas, Telecommunications, Mobile payments (Chase pay, Apple pay, Samsung pay, etc.)
  • Quarter Two (Q2): Grocery stores, PayPal, Chase Pay
  • Quarter Three (Q3): Gas stations, Lyft, Walgreens
  • Quarter Four (Q4): Department stores, Wholesale clubs, Chase Pay

Being able to earn a 5% back in these categories can be extremely lucrative but there are a couple of issues.

For some people the $1,500 limits in spend each quarter are just too low. Some people might spend a whole lot on dining and groceries for example and would like to maximize that spend each year in higher increments. Those people might look into other options that are focused on dining and grocery store rewards like the American Express Gold Card.

Other people might have the opposite issue and struggle to max out these categories or even come close to maxing out the categories. It really just depends on your spending habits but sometimes people really struggle to maximize categories like gas, drug stores, department stores, etc. Purchasing gift cards is usually the answer to this problem but is not always possible for people.

If you are not able to optimize the bonus categories, your earnings could be lower than they would be with the Chase Freedom Unlimited since you would be earning additional points on other categories.

And finally, you have to remember to activate your 5% earnings each quarter.

Chase Freedom Unlimited

The Chase Freedom Unlimited usually earns 1.5% back on all purchases but with the new offer it earns a whopping 3% back on all purchases up to the first $20,000 spent in your first year. Getting 3% back on all purchases up to $20,000 in spend is pretty good but it’s also not the very best offer available like this.

A comparable option would be the American Express Blue Business Plus. This card earns 2X on all purchases up to $50,000 in spend each year. So the earning rate is a little bit less but you can earn this up to $50,000 dollars in spend and you can do this every single year. And just like the Chase Freedom Unlimited, this card comes with no annual fee although it is a small business credit card.

Another option could be the Citi DoubleCash which allows you to earn a 2% back on all purchases. Getting 2% back on all purchases is really great for a no annual fee card but it does come with a couple of caveats. The first is that you must pay off your Citi DoubleCash bill in order to get the full 2% cash back. And the second is that you can only earn cash back with this card and with other cards like the Chase Freedom Unlimited you can earn points that you can transfer out to travel partners.

Chase Freedom Unlimited 3% offer

In addition to choosing between the Unlimited and the Freedom you might also have to choose between Freedom Unlimited offers. The new offer with 3% back on all purchases up to the first $20,000 spent can potentially offer you much more value than the standard $150 bonus if you spend a lot.

For example, if you were to spend $20,000 and your first year then you would earn 60,000 Ultimate Rewards which would be worth at least $600. However if you earned the standard $150 bonus with 1.5% back on all purchases, then you would only have about 45,000 Ultimate Rewards after spending $20,000.

But now let’s say that you spent under $10,000. So let’s say that you were going to spend $8,000 over the course of your first-year. With the old offer you would and up with 27,000 points. But with the new offer you would only have 24,000 points. So if you were planning on spending under $10,000 the old offer could potentially offer you better value. (There’s no word on if and when this offer will be coming back it.)

Which is better?

Choosing between the Freedom and the Freedom Unlimited really comes down to what type of spending you want to earn bonus points on. If you don’t mind keeping track of different quarterly categories and have a good idea of what types of categories you would spend over the course of a year then the Chase Freedom could be a perfect fit for you.

On the other hand, if you don’t think you want to keep up with changing categories the Freedom Unlimited could be a better choice. Also, if you are a very high spender the Freedom Unlimited could be a much better option, especially if a lot of your spending is in categories that are not quarterly bonus categories for the Freedom.

I will say that if you think the $1,500 spending limit on the bonus categories is too low then sometimes you can get multiple Chase Freedom cards and essentially double that spend limit each quarter. You can do this by product changing other cards like the Chase Sapphire Preferred.

Ultimate Rewards

Both of these Freedom cards will earn you Ultimate Rewards that will be in the form of cash back. However, if you have a premium Chase credit card like the Chase Sapphire Preferred or the Chase Sapphire Reserve, then you can get even better value for your points.

Tip: Use the free app WalletFlo to help you travel the world for free by finding the best travel credit cards and promotions!

Travel partners

First, with premium Chase cards you can transfer your Ultimate Rewards out to various travel partners. When you transfer your points out to programs like United, Southwest, or Hyatt, you will usually get much better value for your points.

Here is a full list of all of the different transfer partners.

Chase Ultimate Rewards Airlines

  • Aer Lingus
  • British Airways Executive Club
  • Flying Blue (Air France/KLM)
  • Iberia Airways
  • Singapore Airlines KrisFlyer
  • Southwest Airlines Rapid Rewards
  • United MileagePlus
  • Virgin Atlantic Flying Club

Chase Ultimate Rewards Hotels

  • World of Hyatt
  • IHG Rewards Club
  • Marriott Bonvoy

For example, we have used out Chase points to fly business class and first class all over the world while netting over 10 cents per point in some cases. That’s aspirational value but the point stands that you’ll get better value utilizing transfer partners.

Travel portal

Also, you can get better value for your points if you utilize the Chase Travel Portal. With a credit card like the Chase Sapphire Preferred, you can redeem your points at a rate of 1.25 cents per point and with a credit card like the Chase Sapphire Reserve, you can redeem your points at a rate of 1.5 cents per point. What is so great about utilizing these portals is that you don’t have to worry about things like award inventory or special blackout dates.

For many people they don’t like to book hotels through this travel portal because they are fearful that they will lose out on their elite status benefits (upgrades, free breakfast, etc). However, when booking hotels I have been able to receive my elite benefits so that is a huge plus.

No minimum redemptions

One of the great features about both of these cards is that there are no minimums for redeeming your cash back. Many other cards might limit you to minimum redemptions of something like $25 and some even $100. So this just makes it a lot easier to use your points.

Credit score needed

The good thing about both of these credit cards is that they are some of the easiest Chase cards to get approved for. For example, it is completely possible to get approved for these cars with credit scores under 700. In fact, I’ve even heard of people getting approved with credit scores around 650.

With that said, Chase likes to see you with some decent credit history before they approve you for their cards. So if you have nonexistent credit history or a very thin credit profile, you might want to establish a little bit more credit history before you apply. Read more about the credit scores needed for the Chase Freedom here.

Another tip is to open up a bank account with Chase which could be a savings or checking account. That will help to establish your relationship with Chase which could improve your approval odds. It would also be a good idea for you to check out my article on the Chase Reconsideration Line.

Free credit score

Both of these credit cards will offer you the feature known as Chase Journey. This is a service that allows you to check your credit score for free. This can help you to keep an active eye on your credit score and also monitor anything that hits your credit report.

However, you should note that Chase Journey uses the Vantage credit model. This is a model different from FICO and sometimes the scores can be vastly different. Since most credit card issuers use the FICO model score, Chase Journey doesn’t always provide you with the most useful credit score.

0% APR

Both of these cards offer you 0% APR intro periods. This makes them good candidates for people who need to make large purchases but are not quite able to completely pay off their credit card balance in a month.

If you are really looking for one of the best 0% APR cards then you might want to look at the Chase Slate. That card does not offer much in terms of rewards but if you are trying to get a 0% interest rate with purchases or balance transfers that card is about as good as it gets.

Purchase protection

With both of these cards you will be able to take advantage of the benefits known as purchase protection. This covers your new purchases for 120 days against damage or theft up to $500 per claim and $50,000 per account.

Purchase protection is a great perk but some cards offer you limits up to $10,000 per claim like the Chase Sapphire Preserve. Therefore, you might want to consider those other options if purchase protection is truly important to you.

Extended Warranty

Both Freedom cards extend the time period of the U.S. manufacturer’s warranty by an additional year, on eligible warranties of three years or less. If you really want optimal extended warranty coverage, you might think about going with American Express cards which are known to have better warranties since they can extend your warranty up to two additional years.

Annual fees

Both cards come with no annual fees. It’s not that uncommon for a cards like this to come with no annual fee. There are numerous other 5% back cards that offer no annual fee and you also have cards liked the Capital One® Quicksilver® Cash Rewards Credit Card that offer 1.5% cash back.

With that said, it is still significant that you can transfer these Ultimate Rewards to your other cards and get significantly more back in value than 1.5% or 5%. So from that perspective, it is actually pretty special that these Freedom cards don’t have annual fees.

Foreign transaction fees

Both cards come with foreign transaction fees of 3%. Because these cards come with 3% transaction fees you may want to have another option in your wallet for international purchases. Other cards like the Quicksilver don’t come with foreign transaction fees.

Chase 5/24

Both of the Chase Freedom cards are subject to the 5/24 rule. This means that if you have opened up five or more accounts in the past two years you will not be approved for the cards subject to certain exceptions. Because of that rule, you will want to prioritize getting these cards if you are interested in the rewards.

But if you are cutting it close with 5/24 I think it is a much better move to go for a card like the Chase Sapphire Preferred because there is a lot more potential for value there.

Final word

Both of these cards can be great fits for your points earning arsenal. Personally, I have both of these cards and use them quite frequently to rack up tons of Ultimate Rewards each year. Since both of these cards are subject to the 5/24 rule, they are not that easy to get for some people. But if you can pick up both of them then I would definitely look into doing that to complete the Chase Quadfecta.

Which is Better: Chase Freedom Unlimited vs Citi Double Cash

The Chase Freedom Unlimited and the Citi Double Cash are two of the most highly sought after cash back credit cards. They both earn a consistent cash back return on all purchases but their return rates, sign-up bonuses, and other perks are all very different. Each of these cards can outdo the other depending on a person’s needs and goals so here’s a close look at the Chase Freedom Unlimited vs Citi Double Cash.

Update: Some offers are no longer available — click here for the latest deals!

Tip: Use WalletFlo for all your credit card needs. It’s free and will help you optimize your rewards and savings!

Sign-up bonus

Chase Freedom Unlimited

The Chase Freedom Unlimited offers $150 cash back after spending $500 in the first 3 months, plus $75 when adding an authorized user. Update: there is a new Chase Freedom Unlimited offer allowing you to earn 3% back on the first $20,000 in purchases each year but does not come with the sign-up bonus. 

The total sign-up bonus of $175 is a great offer for a no annual fee credit card.

With the Chase Freedom Unlimited, you’ll earn Ultimate Rewards that can only be redeemed as cash back. But if you have a premium-level card like a Sapphire Preferred or a Sapphire Reserve, then you’ll be able to transfer out your points to several great transfer partners.

Being able to transfer out your points means that you’ll be able to get more value from your points. For example, you might be able to transfer out your points so that you’re getting 2 cents per point at a top-notch Hyatt hotel property.

In that case, that sign-up bonus value just doubled from $175 to $350. 

This is why it’s really important to consider the Chase Sapphire cards when thinking about the Freedom. To read more about maximizing Chase Sapphire rewards click here.

Citi Double Cash

The Double Cash offers $100 after spending $500 in the first 3 months.

Unlike the Freedom this is 100% cash back, so the maximum potential for value is a flat $100.

The Citi Double Cash has not always offered a sign-up bonus on a consistent basis so this offer may not always be around. But while it is around, it definitely makes the Double Cash a more competitive option.

Take-a-way

The Chase Freedom has the much stronger sign-up bonus both in terms of its straight cash back value but especially with the value you can get out of it with transfer partners.

Bonus earnings

Chase Freedom Unlimited

The Chase Freedom Unlimited earns unlimited 1.5% back on all purchases. Update: there is a new Chase Freedom Unlimited offer allowing you to earn 3% back on the first $20,000 in purchases each year but does not come with the sign-up bonus. 

This is a great earning rate considering these are Ultimate Rewards we are talking about. Again, think about if you’re getting 2 cents per value on redemptions with your Ultimate Rewards. That means you’re earning 3% back on every single purchase which blows the Double Cash out of the water.

This is one reason why the Freedom Unlimited is one of my favorite cards. There’s potential to earn great value on every purchase you put on the card, regardless of what category that purchase falls under.

This 1.5% cash back can also be killer if you can combine with 5% back on the Chase Freedom and/or 3X on dining and travel earned by the Chase Sapphire Reserve.

Citi Double Cash

The Citi Double Cash earns 2% back on all purchases but there is a catch. You get 1% back just for making the purchase but only get the additional 2% back when you pay the minimum due.

It’s kind of an odd structure since they only require you to pay the minimum on your credit card but 2% back on all purchases is still fantastic for a no annual fee credit card.

Earnings compared to other cards

Below, I’ll show how much you could net by spending $6,000 on a few different no-annual fee cash back credit cards.

I’ll assume the spend is in the highest earning categories on each card and if there is a cap to them, I’ll just use the non-bonused rate to complete the estimate. I’ll also include the value of the sign-up bonus as well. 

Here’s what it looks like:

  • Citi Double Cash = $120 + $100 = $220
  • Chase Freedom Unlimited = $90 + $175 = $265
  • Wells Fargo Cash Wise = $90 + $200 = $290
  • Amex Blue Cash EveryDay = .$180 + $150 = 330
  • Chase Freedom = $300 + $175 = $475
  • Discover it = $600

As you can see, the Chase Freedom Unlimited beats out the Citi Double Cash in year one based on spending of $6,000 and factoring the sign-up bonus.

If you’d like to see how some other card compare you might be interested in these articles:

Long-run analysis

However, in the long-run, the Double Cash will obviously earn more cash back since it earns 2% cash back versus the Freedom Unlimited which only earns 1.5% cash back. But again, it all comes down to how you value/use Ultimate Rewards.

If you’re using your Ultimate Rewards to cover flights and hotels that you’d normally be paying cash for by utilizing transfer partners via the Sapphire cards then the Freedom Unlimited will almost always beat out the Double Cash.

For example, assume you had the Sapphire Reserve and you only used your Ultimate Rewards through the Chase Travel Portal so you were receiving 1.5 cents per point on those redemptions. Well, in that case you’d be earning 2.25% back on every purchase which is better than the Double Cash.

So it comes down to what plans you have for your points.

If it’s just cash back then in the long-term the Citi Double Cash will beat out the Freedom Unlimited.

If you factor in the sign-up bonus which is $75 higher, you’d be getting more cash back with the Double Cash once you spend over $15,000. But again, that assumes you’re only redeeming for cash back.

0% Intro APR

Chase Freedom Unlimited

The Freedom Unlimited has an interesting 0% APR period which allows you to get 0% promotional APR for 6 months from date of purchase on purchases of $399 or more. It’s available anytime and it’s automatic.

This is very different from the Chase Freedom which offers 0% intro APR for 15 months from account opening on purchases and balance transfers. For this reason, I think the Chase Freedom Unlimited is one of the best credit cards for emergencies since you can get 0% APR at any time.

The Freedom Unlimited also offers balance transfers with fees of $5 or 5% of the amount of each transfer, whichever is greater.

Citi Double Cash

The Citi Double Cash has no 0% intro APR.  the balance transfer fee is either $5 or 3% of the amount of each transfer

Take-a-way

So the Freedom Unlimited is great for people who think they’ll be occasionally making large purchases of over $399 and might not be able to pay those off immediately. Meanwhile, the Double Cash doesn’t offer anything in the 0% APR department, though it’s balance transfer fee is smaller at 3%.

Refer a friend

Chase has a great Refer a Friend program where you can earn up to 10,000 per referral and up to 50,000 Ultimate Rewards per year on referrals.

This is one of the most under-estimated benefits of Chase cards. If you can tap into these referrals and max them out, that’s at least $500 a year in extra rewards you’re netting with the Chase Freedom Unlimited.

The Citi Double Cash does not have a referral program so you miss out on these benefits.

Chase Shopping Portal

Chase has a tremendous shopping portal which allows you to maximize rewards by earning Ultimate Rewards for everyday purchases on items from an array of online retailers. If you utilize this portal on a regular basis you can add 2% to 5% back on a lot of purchases and really cash in on your savings.

Citi discontinued its shopping portal so there’s no way to maximize rewards with them in this way.

Credit card late fee pass

The Double Cash allows you to get a pass on your first late fee but the Freedom Unlimited does not offer this perk.

Annual fee

Both cards do not have an annual fee.

Chase Freedom Unlimited vs Citi Double Cash

These cards are two very strong cash back credit cards and here are how their strengths compare.

Chase Freedom Unlimited

  • Better up-front earnings with higher sign-up bonus
  • More ways to cash in on points with shopping portal and referrals
  • Better 0% APR options
  • Potential for higher earnings with transfer partners

Citi Double Cash

  • Better for long-term earnings if you just want cash back
  • First late-fee waived

Final word

The Chase Freedom is the more robust credit card out of the two. If you can tap into things like the referrals, shopping portal, 0% APR, and transfer partners, the Freedom Unlimited can absolutely blow the Citi Double Cash out of the water.

However, if you’re just focused on pure cash back earnings and don’t see yourself utilizing things like referrals, then the Citi Double Cash will most likely net you more cash back in the long-run once you hit the $15,000 spend mark.

Cover photo by 401kcalculator.org.

Wells Fargo Cash Wise vs Chase Freedom Unlimited

Most people today still prefer cash back credit cards versus travel rewards cards, which is one reason why I’ve decided to start giving cash back credit cards more attention. Two cards that offer great cash back returns with no annual fees are the Wells Fargo Cash Wise and the Chase Freedom Unlimited.

In this article, I’ll take a look at the Wells Fargo Cash Wise vs Chase Freedom Unlimited and give some insight into which article could be better suited for you.

Update: Some offers are no longer available — click here for the latest deals!

Ultimate Rewards vs cash back

It’s worth noting from the beginning that the Chase Freedom Unlimited earns Ultimate Rewards.

These points can be redeemed for cash back at a rate of 1 cent per point. But if you have a premium card like the Chase Sapphire Reserve or the Chase Sapphire Preferred, you can transfer those points out to some great travel partners. This gives the Freedom an edge if you’re interested in travel and can get a premium Chase card.

But if you’re solely interested in cash back, the transfer partners are less of an issue.

You can transfer points to partners like United with the Chase Freedom.

Tip: Use WalletFlo for all your credit card needs. It’s free and will help you optimize your rewards and savings!

Sign-up bonus

One area where the Wells Fargo Cash Wise outshines the Chase Freedom Unlimited is the sign-ip bonus. You can earn $200 cash back after spending $1,000 in the first three months with the Wells Fargo Cash Wise. Many have to wait up to three months to receive their bonus so that delay is a bit of a drawback.

With the Chase Freedom Unlimited, you’re only given $150 after spending $500 in the first three months (though authorized users get an additional $50 back). Update: there is a new Chase Freedom Unlimited offer allowing you to earn 3% back on the first $20,000 in purchases each year but does not come with the sign-up bonus. 

So for maximum up-front value I have to give the edge to the Wells Fargo Cash Wise, although the lower spend requirement of the Chase Freedom might be better for other people.

Bonus earning

Both cards earn 1.5% back on purchases so it’s a dead tie on the standard bonus earning. Update: there is a new Chase Freedom Unlimited offer allowing you to earn 3% back on the first $20,000 in purchases each year but does not come with the sign-up bonus. 

But the Cash Wise offers an additional 20% bonus on mobile wallet transaction bonus cash reward above the base earn of 1.5% on net purchases or a total of 1.8% cash rewards during the first 12 months from the date the account is opened. So if you use things like Apple Pay or Google Pay then you could be earning 1.8% back on all of those purchases for a year which can certainly add up.

The Chase Freedom Unlimited has offered special promotions for earn additional bonus points before. For example, you’ve been able to earn up to 10% back at places like WalMart and Best Buy. Those offers don’t provide the consistent value offered by the Cash Wise so I wouldn’t consider them as valuable.

Other bonus earning potential

If you want a Wells Fargo card with bonus earning on categories like dining gas, the Wells Fargo Propel card could be a good fit for you.

Also, don’t forget about the original Chase Freedom card which earns 5% back on rotating quarterly categories. If you’re debating between which Chase Freedom card is the best for you then take a look at this comparison between the two cards.

Annual fee

Both cards come with no annual fee. 

0% Intro APR

The Wells Fargo Cash Wise earns 0% APR on the first 12 months but the Chase Freedom Unlimited has a 0% intro APR for 15 months. So if you’re trying to extend that period of no interest the Chase Freedom has the longer 0% APR period.

Balance transfer fees

Although the Chase Freedom Unlimited has the longer 0% intro APR period, it does fall short in the balance transfer department. That’s because it incurs a balance transfer fee of 5% while the Wells Fargo Cash Wise only incurs a balance transfer fee of 3%.

Thus if your plan is to pay off your balance within 12 months then the Wells Fargo Cash Wise is going to be a better option since you’ll save 2% on the initial transfer fee which can add up quickly if you’re talking about thousands of dollars being transferred.

But if you’re really concerned about doing a balance transfer, Wells Fargo has the Wells Fargo Platinum Visa Card which offers a 0% APR period for up to 18 months.

Cell phone benefit

One surprising perk that the Wells Fargo Cash Wise has is that it comes with cell phone protection. If you pay your monthly cell phone bill with the Wells Fargo Cash Wise you can to get up to $600 protection for damage or theft of a cell phone.

Reimbursement is limited to the repair or replacement of your original cell phone, less a $25 deductible with a maximum benefit limit of $600 per claim and $1,200 per 12 month period. This benefit does not cover cell phones that are lost.

$25 is a low deductible so if you’re prone to damaging your cell phone the Wells Fargo Cash Wise can provide you with a special perk that the Freedom doesn’t come with. If you had an iPhone but didn’t have something like Apple Care to cover an accident like a broken screen, then this protection could end up saving you a couple of hundred bucks.

phone insurance
Phone insurance can come in handy!

Redemption minimums for cash back

The Wells Fargo Cash Wise redemptions are redeemable in $25 increments only. Note that this is not just a minimum but a an incremental amount. So you’d have to redeem in increments of $25, $50, $75, etc.

Meanwhile the Chase Freedom has no minimum for cash back so you don’t have to worry about your points ever getting stranded.

It might not seem like a big issue, but leaving sums like $10 or $20 in a rewards account is something that turns off many people to redemption minimums.

Shopping portals

Both Chase and Wells Fargo have shopping portals that you can use to earn additional cash back. Here’s a link to the Wells Fargo shopping portal. And here’s an article explaining how the Chase Shopping Portal works.

I haven’t done an extensive case study on the rates earned with these portals. I’ve used the Chase Shopping Portal a ton and know it often has great rates. Based on my review of the Wells Fargo shopping portal, it looks like it earns pretty standard return rates as well.

Foreign transaction fee

Both cards have foreign transaction fees of 3%.

Approval odds

Both banks prefer you to have a relationship with them when approving you for credit cards. However, the Chase Freedom cards are usually great entry points into Chase and I know many people who have been approved for those cards with no banking relationship with Chase.

However, Wells Fargo in my experience has a clear preference for people who bank with them. Thus, if you have never banked with Wells Fargo and are not able to open up an account with them to establish a relationship, the Chase Freedom could present you with better approval odds.

But do keep in mind that the Chase Freedom Unlimited is subject to the Chase 5/24 Rule and other Chase credit card application restrictions. The 5/24 rules means you won’t be approved if you’ve opened up 5 or more credit card accounts within the past 24 months so if that applies to you, the Wells Fargo Cash Wise might be the better option.

Referrals

One area where the Chase Freedom has a major leg up is that you can earn Ultimate Rewards when you refer friends and families and they get approved for the Chase Freedom Unlimited. In fact these referrals can be as high as $100 per approval up to $500 per year. That kind of cash can add up quick and involves little to no work on your part.

Meanwhile Wells Fargo does not offer a referral program so you lose out on the value potential here.

Wells Fargo Cash Wise vs Chase Freedom Unlimited

So in the end where are all of the advantages?

Wells Fargo Cash Wise strengths

The Wells Fargo Cash Wise has the following strengths:

  • Better sign-up bonus (worth $25 more)
  • 1.8% on mobile wallet transactions during the first 12 months
  • Lower balance transfer fee
  • Cell phone benefit

Chase Freedom Unlimited strengths

The Chase Freedom Unlimited has the following strengths:

  • Ability to transfer Ultimate Rewards
  • Longer 0% APR period
  • No minimum redemption
  • Referall program

What this tells me is that you probably want to go with the Chase Freedom Unlimited if you think that you want to earn Ultimate Rewards that will eventually be transferred to travel partners or perhaps used with the Chase Travel Portal. Also, if you’re looking to pay down a big purchase over the course of 15 months, the Freedom Unlimited is the better option.

But if you want to earn a little bit more on the sign-up bonus in cash back, would like to transfer a balance and pay it off within 12 months, plan on using mobile wallet payments, or would like to have cell phone protection up to $600 per claim then the Wells Fargo Cash Wise could certainly be the better cash back option for your wallet.

Final word

The battle of the Wells Fargo Cash Wise vs Chase Freedom Unlimited comes down to your personal goals and preferences. I honestly don’t think that you can go wrong with either one since they both offer unique advantages. But one can definitely be better than the other if your personal goals align with the strengths of one card over the other.