Hi there, it's Ernest from Trip Astute. In this video, we're discussing the
difference between the Chase Freedom and Freedom Unlimited credit card, and which
might be a better card for you.
(light chiming music)
The Chase Freedom is one of my most used cards and
has a permanent spot in my wallet. While I love the benefits that I receive from
some of my premium credit cards, like the Chase Sapphire Reserve, I feel like the
Freedom card is a workhorse and probably earns me more Ultimate Rewards points per
year than any other Chase card that I use. The card has no annual fee and has a
quarterly rotating bonus which means that you'll earn five points per dollar
spent on certain types of spend throughout the year. The bonus category
spend is generally capped at $1500 per quarter, which would earn you 7500 bonus
points per quarter, or potentially 30,000 bonus points per year. This is
the current 2017 Chase Freedom bonus calendar. Since this video is being
released in summer of 2017, you can see that we are currently wrapping up the
second quarter bonus category of grocery stores and drug stores, and
starting the third quarter bonus category of restaurants and movie
theaters. Also, non-bonus category charges earn one point per dollar on
the Freedom card. In 2016, Chase introduced the Freedom Unlimited.
Like the regular Freedom card, it has no annual fee, but instead of rotating bonus
categories, it has a flat 1.5 points per dollar reward structure. So, if you charge
$100 on your card, you would earn 150 points. Both cards are marketed by Chase
as cash back cards. However, there is a way to make them function more like
travel rewards cards. I cover this in my Chase Ultimate
Rewards 101 video, so check it out for more details. Basically, if you have a
premium Chase card like the Sapphire Preferred, Sapphire Reserve, or Ink
Business Preferred card, you unlock additional abilities on other Ultimate
Rewards earning cards like the Chase Freedom or Freedom Unlimited. This means
that you can transfer bonus points to Chase's travel partners like airlines and
hotels, and even redeem them for bookings on the travel portal. So, the big question
is "which card is right for you?" Well, the answer is: "it depends!"
The Chase Freedom card is definitely an awesome card to pair with Chase's premium
cards like the Chase Sapphire Preferred or Reserve card. I feel like it's a great
card for earning points quickly, especially when you take advantage of
the category spend. I would recommend this card to anyone getting involved in
the points hobby, especially if you already have one of the premium Chase
cards. The Chase Freedom Unlimited card, on the other hand, is a simple
no-nonsense flat rate card. I think it's a great card for folks that don't want the
hassle of tracking bonus categories and their spend. While the 1.5 points per
dollar may seem less than other flat rate cash back cards, keep in mind that
you may be able to squeeze more value from each point by transferring them or
redeeming them via Chase's travel portal. Again, I won't go into detail on the
process in this video, but definitely check out the Chase Ultimate Rewards 101
video for more information. Honestly, I have both cards and I
recommend and use both all the time. Since I'm a points nerd, I try to take
advantage of the categories spend on the Freedom card, but all my non-bonus
everyday purchases typically go on the Freedom Unlimited. If I had to recommend
a strategy, I would say get the regular Freedom card first, only because you'll
probably gain more points in the short term. However, I would also consider
adding the Freedom Unlimited to cover the non-bonus spend as a long-term
strategy. Now that we've covered my recommendation, here are some general
tips on maximizing your Freedom and Freedom Unlimited
card. Keep in mind that most of these tips will apply primarily to the regular
Freedom card. Number one: keep track of the bonus categories. Since the bonus
categories change all the time, it can be difficult to remember, especially if you
have other cards with rotating bonus categories like the Discover It card. I
like to carry a wallet-sized cheat sheet with me which helps me to remember the
categories and cards. You can download one for free from our website. I'll
include a link in the video description. Also, I'll often rearrange the cards in
my wallet as a reminder on which card to use. I generally keep my dining out card
in the front of my wallet. For most of the year, it's my Chase Sapphire Reserve.
However, since restaurants is the 2017 third-quarter category for the Chase
Freedom Card, I'll move it to the front to remind me to use it when I'm buying
lunch or dinner. Number two: set a reminder to activate the
bonus category every quarter. This is an easy one to miss but is super important.
Make sure you activate the bonus category every quarter for your Freedom
card. You can do so by going directly to the activation page or through the Chase
account page. You should also see the status of your activation on the account
home page. Keep in mind that you can activate the bonus after the quarter has
started. Chase will retroactively award you bonus points. The only catch is that
you have to activate before the quarter ends, otherwise you will lose out on the
bonus points. Number three: keep track of your spending. This is obviously more
applicable to the Chase Freedom Card. I personally use You Need a Budget (or YNAB)
to track my daily spend. That way, I can proactively monitor how much I'm
spending in that bonus category per quarter. Number four: transfer points to
your Chase Sapphire Reserve card if you have one. I touched on this tip in our
Maximizing your Chase Sapphire Reserve Card video, so check it out for more
details. Basically, you can increase the redemption rate on your Freedom and
Freedom Unlimited points by transferring them to your Reserve card since it has a
1.5 cent per point redemption rate versus the
1.25 cents per point rate found on most Chase cards. Number five: be creative with
your bonus category spend. You might think that you'll never actually spend
$1,500 on groceries or drugstore purchases, and you're probably right.
However, remember that you can often buy other things at these stores like gift
cards. We covered this topic in another video called "Earning Points and Cash
with Gift Cards". While I wouldn't abuse this tactic, it's
definitely a great way to earn the extra points on purchases you might need to
make. As an example, I purchased a few gift cards in May and June from the
grocery store and drugstore as Mother's Day and Father's Day gifts, and all
contributed to my category spend and bonus. Do you have a Chase Freedom or
Freedom Unlimited card? If so, which card do you find more useful? Please share
your experience in the comment section below.
Also, let us know if you have any questions or comments. I've included
referral links to the Freedom and Freedom Unlimited card. I do get a bonus
if you use a link. It doesn't cost you anything extra, but it helps us to
continue to build content for this channel. If you enjoyed this video or
found it useful, please hit the "like" button and consider subscribing. It's
free and a great way to get updates on our new posts. Until next time, travel
safe and travel smart.
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