This No-Fee Credit Card Offers Up to 6.5% Cash Back on Travel

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Many travel credit cards attract customers with tempting welcome bonuses and points-earning structures. However, the recently revamped, no-fee Chase Freedom Unlimited® is tailored for those who prefer cash over points. This card now boasts impressive cash-back rates as part of its introductory offer: 6.5% on travel booked through Chase Travel℠, 4.5% on dining and drugstore purchases, and 3% on all other purchases up to $20,000 during the first year. After that, the rates decrease by 1.5% across the board, but you still receive a 5% rebate on travel purchased via Chase Travel. For cash enthusiasts looking to maximize earnings without an annual fee, the Chase Freedom Unlimited is an excellent choice. Notably, it can also lead to significant point earnings through a clever strategy. Here’s everything you need to know about this lesser-known travel credit card.

An Innovative Introductory Bonus

Since its relaunch in March 2024, the Chase Freedom Unlimited is attracting new cardholders with a compelling welcome offer. In addition to the already impressive earnings rates, you’ll earn an additional 1.5% on all purchases up to $20,000 spent in the first year (potentially up to $300 cash back).

Here’s a breakdown of the rates by category:

• 6.5% on travel booked through Chase Travel
• 4.5% on dining and drugstore purchases
• 3% on all other transactions

This card has no annual fee and offers a 0% introductory APR for 15 months on both purchases and balance transfers. (After that, it will switch to a variable APR ranging from 20.49% to 29.24%.)

Earnings Rate

After reaching $20,000 in spending during your first year or simply entering your second year of membership, the cash-back rates will decrease but still remain competitive for the following years:

• 5% on travel booked through Chase Travel
• 3% on dining and drugstore purchases
• 1.5% on all other transactions

The annual fee remains $0, and there’s no minimum required to redeem cash back. All earned cash back accumulates as Ultimate Rewards points, with bonuses included in the total that is deposited into your rewards account. These points can be redeemed as direct deposits into most U.S. checking and savings accounts or as statement credits. As long as the account stays open, Ultimate Rewards points will not expire.

Watching the cash accumulate

If you maximize your spending to $20,000, the introductory bonus alone is worth $300. If that initial $20,000 is spent through Chase Travel, at a 6.5% rate, you'll earn $1,300 in cash back ($1,000 from the standard 5% plus $300 from the 1.5% introductory bonus). This represents an impressive return on your investment. Even after reaching the spending threshold, earning $500 back for every $10,000 spent on Chase Travel is still a great deal.

Fortunately, cash back isn’t limited to Chase Travel. The rates for dining and drugstores are three times higher than most no-annual-fee cash-back cards, and the rate for all other purchases is 50% greater than that of most competitors.

From cash to points, right?

While the appeal of the Freedom Unlimited lies in cash rewards, it also benefits those who enjoy earning points and miles. How? You can merge the cash back from the Freedom Unlimited with a premium Chase card that generates more versatile Ultimate Rewards points, like the Chase Sapphire Preferred® Card or the Chase Sapphire Reserve®.

With only the Chase Freedom Unlimited, you can use your Ultimate Rewards exclusively for cash back. In contrast, the Ultimate Rewards accrued through Chase’s premium cards offer greater redemption flexibility. Specifically, you can transfer them to Ultimate Rewards’ travel partners, including United, Southwest, Hyatt, and Marriott.

When holding multiple Chase cards, you can easily transfer Ultimate Rewards from one account to another. This means rewards earned with the Unlimited can be redeemed through the Sapphire cards.

Let’s clarify with the previous scenario: I spend $20,000 in my first year on Chase Travel using my new Chase Freedom Unlimited. I then accumulate 130,000 Ultimate Rewards, which I can redeem for $1,300. However, since I also possess the Chase Sapphire Preferred, I can transfer those 130,000 points from the Unlimited to my Ultimate Rewards account associated with the Preferred through the “Combine Points” feature in the Chase portal. Once transferred, I can utilize those 130,000 points in more diverse ways than just cash, including my preferred option: transferring to World of Hyatt at a 1:1 ratio and receiving 130,000 World of Hyatt points.

Freedom: alone or in conjunction?

If you’re primarily seeking a fantastic return rate and believe cash reigns supreme in credit card rewards, the Chase Freedom Unlimited is your ideal choice. However, we highly suggest complementing it with other cards in your collection if you desire travel benefits such as airport lounge access, travel insurance, and elite status upgrades. Remember, you can accumulate significant rewards with the Freedom Unlimited and subsequently transfer those Ultimate Rewards to your Chase Sapphire Preferred or Reserve account if you prefer points over cash back.

If you’re a current Chase cardholder wondering about bonus and card eligibility, the answer is yes—you can qualify for the introductory offer of the Chase Freedom Unlimited and you are permitted to hold multiple different Chase cards, though not two of the same kind. Therefore, if you don’t currently own (or haven’t previously owned) the Freedom Unlimited, you can start enjoying these remarkable cash-back rates and enhance either your bank balance or points totals.

While the offers listed above are accurate as of publication, they may change at any time and could have been modified or may no longer be available.