Shopping around for a new credit card can be overwhelming. But if you’re looking for a rewards card that fits your needs, the Chase Freedom Unlimited® and Chase Sapphire Preferred® Card are both worth considering—here’s how they stack up.
Chase Freedom Unlimited | Chase Sapphire Preferred | |
FinanceBuzz star ratings | ||
FinanceBuzz value calculation1 | Year one earnings: $953
Year two earnings: $653 |
Year one earnings: $1,486
Year two earnings: $789 |
Annual fee | $0 | $95 |
Welcome bonus | Earn an extra 1.5% on everything you buy (on up to $20,000 spent in the first year) | Earn 60,000 bonus points after you spend $4,000 on purchases in the first 3 months from account opening |
Earning rate | 6.5% cash back on travel purchased through Chase Travel℠, 4.5% cash back on drugstore purchases and dining at restaurants, including takeout and eligible delivery service and 3% cash back on all other purchases (on up to $20,000 spent in the first year). After your first year or $20,000 spent, earn 5% cash back on travel purchased through Chase Travel℠, 3% cash back on drugstore purchases and dining at restaurants, including takeout and eligible delivery service and unlimited 1.5% cash back on all other purchases | 5X points on travel purchased through Chase Travel℠; 3X points on dining, select streaming services, and online groceries; 2X points on all other travel purchases, and 1X points on all other purchases |
Intro APR | 0% for 15 months on purchases (then 20.49% - 29.24% Variable)
0% for 15 months on balance transfers (then 20.49% - 29.24% Variable) |
None |
Travel coverage |
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Other benefits |
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Foreign transaction fees | 3% of each transaction in U.S. dollars | None |
Credit needed | Excellent, Good | Excellent, Good |
Learn more | Learn more |
When to go with the Chase Freedom Unlimited
The Chase Freedom Unlimited might be the better choice if:
- You’re looking for a $0-annual-fee option
- You want to earn cash back
- You want to take advantage of an introductory APR period
$0 annual fee
If you’re looking for a card with a $0 annual fee, the Chase Freedom Unlimited is the better choice between the two cards. Without an annual fee, you can earn cash back without worrying whether the rewards will justify paying to hold the card.
The Chase Sapphire Preferred charges an annual fee of $95. While the annual fee could be more than worth it for some travelers, it’s still worth considering.
Intro APR period
If you’re planning on making a big purchase and want some time to pay it off without incurring interest charges, or if you want to consolidate debt from high interest credit cards, the Freedom Unlimited is a fantastic choice. New cardholders receive 0% intro APR on purchases for 15 months from account opening, (then 20.49% - 29.24% Variable). They also receive a 0% intro APR for 15 months on balance transfers (then 20.49% - 29.24% Variable) Note that a balance transfer fee ($5 or 3% of the amount of each transfer, whichever is greater in the first 60 days) will apply.
When to go with the Chase Sapphire Preferred
The Chase Sapphire Preferred might be the better option if:
- You want to maximize redemption value through transfer partners
- You travel internationally frequently
- You want the most comprehensive travel protection possible
- You can utilize the annual hotel credit
Access to transfer partners
While both of these cards earn Chase Ultimate Rewards points on qualifying purchases, only the Chase Sapphire Preferred allows you to transfer those points to hotel and airline transfer partners. Current Chase travel partners include the following airline loyalty programs:
Airlines:
- AerClub, loyalty program of Aer Lingus
- British Airways Executive Club
- Emirates Skywards®
- Air France KLM Flying Blue
- Iberia Plus
- JetBlue TrueBlue
- Singapore Airlines KrisFlyer
- Southwest Airlines Rapid Rewards®
- United MileagePlus®
- Virgin Atlantic Flying Club
- Air Canada Aeroplan
Hotels:
- IHG® Rewards Club
- Marriott Bonvoy™
- World of Hyatt®
Even if you don’t want to transfer your points to partners and would rather book travel through Chase Travel, your points are worth more: 1.25 cents over the Freedom Unlimited’s one cent.
No foreign transaction fees
With the Chase Sapphire Preferred, you don’t have to worry about foreign transaction fees. This card is designed for travel, so you don’t have to pay any additional fee on purchases you make abroad. On the other hand, with the Freedom Unlimited, you pay a 3% of each transaction in U.S. dollars foreign transaction fee. If you plan to travel overseas, you are better off using the Sapphire Preferred. As a full-time digital nomad, I love using my Sapphire Preferred while abroad and know how frustrated I would be if I was incurring foreign transaction fees on each purchase.
Extra benefits
There are a few extra benefits that give the Sapphire Preferred an edge over the Freedom Unlimited. First, cardholders of the Sapphire Preferred get an annual $50 statement credit on hotels booked through Chase Travel. It’s not much, but every little bit helps, and it’s a great way to attempt to offset the annual fee. I always use my hotel credit, and it’s nice to save a little bit of money when taking a weekend trip.
Additionally, the Sapphire Preferred gives cardholders an anniversary point bonus equal to 10% of their total earnings in the previous year. If you spend $25,000 in purchases on your card, you’ll get 2,500 bonus points. There’s no limit to how much you can earn, so if you’re a heavy spender, you’ll appreciate the bonus on your account anniversary.
The Sapphire Preferred also comes with a primary auto rental collision damage waiver (compared to the Freedom Unlimited’s secondary waiver) and increases the value of the trip cancellation and interruption insurance offered by the Freedom Unlimited from $1,500 per person to $10,000 per person. The Sapphire Preferred also adds baggage delay insurance and trip delay reimbursement, which the Freedom Unlimited does not offer.
These extra benefits are relatively minor and won’t influence an infrequent traveler much, but they can be a dealbreaker for seasoned travelers.
A closer look at the welcome bonuses
Both the Chase Sapphire Preferred and the Chase Freedom Unlimited come with lucrative welcome offers. With the Chase Sapphire Preferred card, you earn 60,000 bonus points after you spend $4,000 on purchases in the first 3 months from account opening. That’s a value of $750 when you redeem for travel through the Chase Travel℠ portal.
With the Chase Freedom Unlimited, cardholders can earn an extra 1.5% on everything you buy (on up to $20,000 spent in the first year). If you don’t think you’ll meet the spending threshold for the Sapphire Preferred, it might make sense to choose the Freedom Unlimited, as it is much easier to reach.
Why not get both cards?
The Freedom Unlimited has a solid earning potential. The twist — your cashback earnings are awarded as Ultimate Rewards points. A dollar in cash back earnings is equal to 100 points. Although the Freedom Unlimited doesn’t have access to the airline and hotel transfer partners that the Sapphire Preferred offers, you can combine rewards across accounts, meaning you can combine your cash back earnings from the Freedom Unlimited with the points you earn from the Sapphire Preferred.
This unlocks access to transfer partners and greater value redemptions.
It also means that you can strategize which card you’re using for which purchases — instead of earning just 1X points on all other purchases with the Sapphire Preferred, you can use the Freedom Unlimited to earn 1.5% on all other purchases. These cards sync up very well for most consumers as long as they know how to reach the cards’ full potential.
Apart, these two cards are solid options but are likely tailored to different kinds of consumers — for the Freedom Unlimited, someone who wants simple cash back, and for the Sapphire Preferred, travel enthusiasts working toward their next great trip.
However, when used together, you see how these two cards shine and play on the other’s weaknesses. If possible, consider maximizing your earning potential and benefits by applying for both cards.
FAQ
What credit score is needed for a Chase Freedom Unlimited card?
For the best approval odds, aim for a good to excellent credit score to get approved for the Chase Freedom Unlimited card.
What credit score do you need for a Chase Sapphire Preferred card?
To qualify for the Chase Sapphire Preferred card, you will likely need a credit score that is good to excellent. That means your credit score needs to be 700 or above.
Which is better: Chase Freedom Unlimited or Chase Sapphire?
When deciding between the Chase Freedom Unlimited vs. Chase Sapphire Preferred, it’s really about personal preference. If you value cash back and don’t want to pay an annual fee, the Chase Freedom Unlimited makes more sense. However, if you travel frequently and want flexible travel redemptions, the Chase Sapphire Preferred is a better choice that offers solid value even with an annual fee.
Can you switch from Chase Freedom Unlimited to Chase Sapphire Preferred?
Yes, you can upgrade the Freedom Unlimited to the Sapphire Preferred (in fact, you can upgrade from either Freedom card to either Sapphire card). However, you need to call the customer service line to determine whether you qualify. A word of caution, however: you might not be eligible for the Chase Sapphire Preferred welcome offer if you switch products. If you’re interested in both cards, it’s better to apply for them separately.
When should I use the Chase Freedom Unlimited vs. Sapphire Preferred?
The Chase Freedom Unlimited is best for those who want to earn cashback rewards without adding a card with an annual fee.
Bottom line
For frequent travelers, the Chase Sapphire Preferred offers travel benefits and extra value for your points, which makes the annual fee worthwhile for many, including myself. If you don’t travel often, the Chase Freedom Unlimited could be a better option — you’ll earn a healthy rewards rate without paying for benefits you won’t use. If you can, use the cards in tandem to unlock their full potential.