Chase Freedom Unlimited Alternative Offer: 3% Cash Back During First Year

The Chase Freedom Unlimited credit card usually offers an upfront $150 sign-up bonus along with flat 1.5% cash back on all purchases (no caps). However, it looks like they are testing out this alternative offer where instead of an upfront bonus, they will offer you 3% cash back on every purchase during your first year (no caps). Highlights:

Earn unlimited 3% cash back on every purchase during your first year.
After that, earn unlimited 1.5% cash back on every purchase.*
Earn a $25 bonus after you add your first authorized user and make your first purchase within this same 3-month period.*
No annual fee.

The lesser-known perk of this card is that you actually earn Ultimate Rewards points, which are in turn redeemable for cash back at a rate of 1 points = $0.01. Ultimate Rewards points are worth collecting because of their flexibility. (I hope Chase doesn’t forget this fact.) Ultimate Rewards points can be easily transferred between different Chase credit cards that also earn those points.

If you have a Chase Sapphire Preferred card, you can redeem Ultimate Rewards points at a rate of 1 points = $0.0125 statement credit towards travel booked through the Ultimate Rewards portal. This is the equivalent of getting 3.75% back towards travel on every dollar you spend for a year. You can also transfer Ultimate Rewards points to other programs like United miles, Hyatt points, or Southwest Rapid Rewards points on a 1:1 ratio.

If you have a Chase Sapphire Reserve card, you can redeem Ultimate Rewards points at a rate of 1 points = $0.015 statement credit towards travel booked through the Ultimate Rewards portal. This is the equivalent of getting 4.5% back towards travel on every dollar you spend for a year. You can also transfer Ultimate Rewards points to other programs like United miles, Hyatt points, or Southwest Rapid Rewards points on a 1:1 ratio.

If you charge a lot of money on your credit card, this can become a good value. Let’s say you spend $20,000 a year, that’s $600 cash back or $750 toward travel (with Sapphire Preferred) or $900 towards travel (with Sapphire Reserve). You could also transfer to 60,000 United miles with either Sapphire Preferred/Reserve. And so on.

Restrictions. This card is subject to “5/24” restrictions, which means that your application will be automatically denied if you have opened 5 or more credit cards in the last 24 months (check your credit reports). Our household strategy is to have one person only apply for Chase 5/24 cards, and the other person applies for everything else. There is also this language on the consumer card:

This product is available to you if you do not have this card and have not received a new cardmember bonus for this card in the past 24 months.

Bottom line. This is a alternative sign-up bonus for the Chase Freedom Unlimited. It is worth considering if you plan on charging a lot of purchases onto your credit card in the next 12 months, and you have either a Chase Sapphire Preferred or Chase Sapphire Reserve card.

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Chase Freedom Unlimited Alternative Offer: 3% Cash Back During First Year from My Money Blog.