Chase is offering a new earning structure on its popular Chase Freedom Unlimited Credit Card. Instead of earning a flat 1.5 percent cash back, you’ll earn 3 percent cash back on all purchases for the first year and 1.5 percent afterward.
The card charges no annual fees, and the points can be redeemed for cash back at a rate of 1 cent each or transferred to Chase’s travel partners if you have any of the premium cards that earn Ultimate Rewards, such as the Chase Sapphire Preferred or the Chase Sapphire Reserve. The earning potential is sky-high, but let’s take a look at whether the new offer is worth a credit pull.
Is This A Good Deal?
In the past, the welcome bonus on the Chase Freedom Unlimited Card has been $150 cash back after spending $500 on the card in the first three years. Unfortunately, Chase isn’t offering a sign-up bonus with this offer.
So, just to earn the number of points equal to the original sign-up bonus, you will have to spend $5,000 on the card (5,000 x 3 = 15,000) as opposed to $500 with the old offer. Once you take the earning rate into account, you’d have to spend $10,500 on the Chase Freedom Unlimited just to break even. All spending after that earns a clean triple bonus.
Keep in mind that the offer goes back to 1.5 percent back on all spending after the introductory year, so you have to spend a lot of money on the card to justify foregoing the $150 sign-up bonus. If you have lots of purchases coming up, this could be a worthwhile offer for you.
The offer is publically available to new cardholders. However, you are not eligible for the bonus on the Chase Freedom Unlimited if you currently hold this card or have received a bonus in the past 24 months. You can’t product change another Chase card to this offer either because sign-up offers are available to new applicants only.
What do you think of the new welcome offer on the Chase Freedom Unlimited Card?
No comments:
Post a Comment