It’s rare to find a no-annual-fee credit card that offers a combination of valuable rewards, flexible redemption options and generous introductory sign-up bonus and interest rate offers. But that’s exactly what you’ll get with the Chase Freedom Unlimited®.
For over eight years, I’ve used that card as a foundation for getting the most travel rewards out of every dollar I spend. Sure, it’s marketed as a cash-back card, but that cash back can transform into travel rewards with a much higher redemption value when the card is paired with a Chase-branded travel card, like my Chase Sapphire Reserve®.
Here’s how I use the Chase Freedom Unlimited® to supercharge my travel rewards.
Earn 50% more rewards in non-bonus categories
The Chase Freedom Unlimited® earns 5% back on travel booked through Chase, 3% back on restaurant and drugstore purchases, and 1.5% back on everything else. The rewards are issued as Chase Ultimate Rewards® points that are normally worth a penny apiece if you redeem them for cash back.
I primarily use the Chase Freedom Unlimited® for “everything else” purchases that don’t qualify for a bonus, such as medical bills or car repairs. That 1.5% (or 1.5 points) back is 50% higher than the 1 point per dollar I’d receive if I used my Chase Sapphire Reserve®. While earning 0.5 more points per dollar may not seem like much, it can really add up for big expenses and purchases that don’t earn a category bonus.
Last year I put $16,000 in “everything else” expenses on my Chase Freedom Unlimited®, earning a total of 24,000 points, or 8,000 more than I would have received if I used the Chase Sapphire Reserve®. Compound that over a few years, and we’re talking about a significant number of additional points that I can earn and use for travel.
Pair cards to maximize your rewards value
Combining multiple complimentary credit cards is one of the most efficient strategies to rack up points fast. Since Chase lets you pool rewards among accounts that earn Chase Ultimate Rewards®, you can selectively spend on whichever card earns more in the category of your purchase, then transfer the rewards to the card that has the highest redemption value.
Those 24,000 points I earned on “everything else” purchases by using my Chase Freedom Unlimited® would be worth $240 (1 cent each) if I redeemed them for cash. But once those points are transferred to my Chase Sapphire Reserve®, they become worth $360 (1.5 cents each) when redeemed through Chase’s travel portal and potentially more if sent to a transfer partner.
By pairing those two cards, my baseline effective rewards rate on the Chase Freedom Unlimited® increases from 1.5% to 2.25%. That’s a value that’s tough to beat.
Other card options to pair with the Chase Freedom Unlimited® for outsized travel value include the Chase Sapphire Preferred® Card and the Ink Business Preferred® Credit Card. Those cards still give you access to transfer partners, but the value when redeemed through Chase’s travel portal will be slightly less at 1.25 cents each, resulting in an effective earnings rate of 1.9%.
Chase Sapphire Preferred® Card
Chase Sapphire Reserve®
Ink Business Preferred® Credit Card
Details
• 5 points per $1 on travel booked through Chase.
• 3 points per $1 on dining (including eligible delivery services and takeout), select streaming services and online grocery purchases (not including Target, Walmart and wholesale clubs).
• 2 points per $1 on other travel.
• 1 point per $1 on other purchases.
Bonus offer: Earn 60,000 bonus points after you spend $4,000 on purchases in the first 3 months from account opening.
• 10 points per $1 on Chase Dining, hotel stays and car rentals purchased through Chase.
• 5 points per $1 on air travel purchased through Chase.
• 3 points per $1 on other travel and dining not booked with Chase.
• 1 point per $1 on other purchases.
Bonus offer: Earn 60,000 bonus points after you spend $4,000 on purchases in the first 3 months from account opening.
• 3 points per $1 on the first $150,000 spent on travel, shipping, select advertising, internet, cable and phone services business categories each account anniversary year.
Bonus offer: Earn 90,000 bonus points after you spend $8,000 on purchases in the first 3 months from account opening.
The value of transfer partners
For example, NerdWallet values Hyatt points at 2.2 cents each. If you earn 1.5 points per dollar on the Chase Freedom Unlimited® and hold another Chase card that allows you to transfer those rewards to Hyatt, you’d get an effective earnings rate of 3.3% for each point you transfer to Hyatt. That’s as good a return as you’ll get on a no-annual-fee card.
