The no annual fee Chase Freedom Unlimited® is one of the all around best cards for everyday spending. A few weeks back the card introduced an exciting new welcome bonus, and today some further positive changes were also announced to the card.
When you combine those two factors, there has never been a better time to pick up this card, in my opinion. That’s especially true when you consider that the changes to the card really reflect how consumer spending has evolved as a result of coronavirus.
Earn 20K points plus 5x points on groceries
With the improved Chase Freedom Unlimited welcome bonus you can earn:
- 20,000 points after spending $500 on purchases within the first three months
- 5x points on groceries for the first 12 months, on up to $12,000 of spending (Target and Walmart are explicitly excluded)
The offer for 20,000 points is the same as before, while the 5x points on groceries is the new addition here. This makes the Freedom Unlimited one of the all around best credit cards for grocery store spending.
Earn 5x points on your grocery store spending
New bonuses on dining, drugstores, and more
As of September 15, 2020, the Chase Freedom Unlimited will be offering three exciting new bonus categories, including:
- 5x points on travel purchased through Chase Ultimate Rewards
- 3x points on dining, takeout, and eligible delivery services
- 3x points on drugstores
That’s in addition to the card offering 1.5x points on everyday spending, and the card offering 5x points on groceries with the current welcome bonus.
Why the Chase Freedom Unlimited is worth having
- Those points can be redeemed for one cent each, essentially making this a 1.5% cash back card
- Those points can also be converted into Chase Ultimate Rewards points at a 1:1 ratio, assuming you have this card in conjunction with the Chase Sapphire Preferred® Card (review) or Chase Sapphire Reserve® Card (review)
Personally I value Ultimate Rewards points at ~1.7 cents each, so to me converting Freedom Unlimited points into Ultimate Rewards points increases their value by 70%.
If you were to apply for the Chase Freedom Unlimited, you’d earn the following return on your spending, based on my valuation of Ultimate Rewards points:
- Up to 8.5% back on groceries for the first year
- Up to 8.5% back on travel purchased through Chase
- Up to 5.1% back on dining, takeout, and delivery services
- Up to 5.1% back on drugstores
- Up to 2.55% back on all other purchases
Is that a ridiculously well rounded no annual fee card, or ridiculously well rounded no annual fee card?
Increase the value of your points by having other Chase cards
If you don’t yet have the Chase Freedom Unlimited, this is a fantastic time to pick it up.
The card is currently offering an improved bonus of 20K points with a reasonable spending requirement, plus 5x points on groceries for the first year, for up to $12,000 of spending. That’s a huge points earning opportunity, especially for a no annual fee card.
Then it gets even better, because as of September 15 the card will be offering 5x points on Chase travel purchases, plus 3x points on dining and drugstores. Talk about an unbeatable combo.
Anyone planning on picking up the Chase Freedom Unlimited, given how compelling it is becoming?