Chase Freedom Unlimited^® vs. Wells Fargo Active Cash^® Card [2024]: Is a Flat Rate Better?

Chase Freedom Unlimited vs. Wells Fargo Active Cash

Both the Freedom Unlimited and Active Cash offer cash rewards for making eligible purchases and use the Visa card network to process payments. They also provide intro APR offers for balance transfers and purchases.

But, like any credit card, there are differences that may make one better than the other for you.

	Chase Freedom Unlimited® 4.7 FinanceBuzz writers and editors score cards based on a number of objective features as well as our expert editorial assessment. Our partners do not influence how we rate products.	Wells Fargo Active Cash® Card 5.0 FinanceBuzz writers and editors score cards based on a number of objective features as well as our expert editorial assessment. Our partners do not influence how we rate products.
FinanceBuzz value calculation1	Year 1: $953 Year 2: $653	Year 1: $950 Year 2: $750
Card type	Cash back	Cash back
Credit card issuer	Chase	Wells Fargo
Credit card network	Visa	Visa
Annual fee	$0	$0
Welcome bonus	Earn an extra 1.5% on everything you buy (on up to $20,000 spent in the first year)	$200 cash rewards bonus after spending $500 in purchases in the first 3 months
Earning rate	Earn 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	Earn unlimited 2% cash rewards on purchases
Intro APR	0% intro APR on balance transfers for 15 months, then 19.99% - 28.74% Variable APR 0% intro APR on purchases for 15 months, then 19.99% - 28.74% Variable APR	0% intro APR for 12 months from account opening on qualifying balance transfers, then 19.49%, 24.49%, or 29.49% Variable APR 0% intro APR on purchases for 12 months from account opening, then 19.49%, 24.49%, or 29.49% Variable APR
Travel perks	Trip cancellation or interruption insurance Auto rental collision damage waiver Travel and emergency assistance services	Roadside dispatch Auto rental collision damage waiver Visa Signature Hotel Collection 24/7 Visa Signature Concierge
Foreign transaction fee	3% of each transaction in U.S. dollars	3%
Credit needed	Excellent, Good	Excellent, Good
	Learn more	Learn more

When to go with the Chase Freedom Unlimited

Choose the Chase Freedom Unlimited card if:

• You want to maximize points transfer value within Chase’s ecosystem
• You dine out with friends or bring home takeout often
• You pay for travel insurance

You have premium Chase credit cards

The Chase Freedom Unlimited card earns Chase Ultimate Rewards, like all Chase cash back credit cards. But premium Chase credit cards, like the Chase Sapphire Preferred^® Card, earn premium rewards, such as an elevated points value in the Chase Travel™ portal or the option to transfer points to an airline or hotel partner.

The good news is that you can transfer your points from the Chase Freedom Unlimited card to a premium card for those elevated benefits. The process is simple and is done within the Chase Travel portal. Rather than selecting to redeem your points, you’d select “combine points” under “earn/use.” Once transferred, you can redeem points for the higher value on your premium card.

You spend a lot on dining out

If you love to eat out, whether at home or while traveling, the Chase Freedom Unlimited card allows you to earn 3% cash back on drugstore purchases and dining at restaurants, including takeout and eligible delivery service. This could be a significant difference compared to Wells Fargo's 2% cash rewards on purchases.

You always pay for travel insurance

If you travel frequently, it makes sense to protect your purchases with travel insurance. The Chase Freedom Unlimited card offers several travel benefits that the Active Cash card doesn’t that keeps money in your pocket as long as you pay for your travel accommodations with your Chase card:

• Trip cancellation/interruption insurance: If you become ill or the weather cancels your travel plans, you may be reimbursed up to $1,500 per person (up to $6,000 per trip) for prepaid passenger fares.
• Travel and emergency assistance services: The benefits administrator can provide referrals for legal or medical services when you are away from home.
• Auto rental collision damage waiver: Receive theft and collision damage coverage for rental cars paid with your Chase card.

While the Wells Fargo card offers similar benefits, including emergency assistance services and an auto rental collision damage waiver, the trip cancellation/interruption insurance is worth much more and doesn’t cost you a penny.

Learn more in our Chase Freedom Unlimited review.

When to go with Wells Fargo Active Cash

Choose the Wells Fargo Active Cash^® Card if:

• You love to find ways to save money
• You prefer simple rewards without worrying about categories
• You want more flexible redemption options than Chase offers

You always look for coupons or promo codes

Wells Fargo Active Cash cardholders get access to personalized deals from various merchants. To take advantage of them, you must activate the deals first, so it pays to check back frequently to see what offers are available.

You must pay with your Wells Fargo card to get the deal, and then you receive it as a statement credit, so it’s like a discount off your purchase as it lowers your total balance due.

You don’t want to mess with spending categories

The Wells Fargo Active Cash Card doesn’t have any spending categories. You earn a flat 2% cash rewards on purchases. This makes it one of the best reward credit cards for beginners. It’s also a great option for people who only want to carry one card.

While that might not seem like a big reward, you get it on everything, whereas most cards, including the Chase Freedom Unlimited card, earn a lower percentage on purchases that don’t fall under a specific category.

So if you don’t spend in those three categories often, you’re better off with the Wells Fargo card.

You like flexible redemption options

The Wells Fargo Active Cash Card offers more unique redemption options that I think are valuable, including:

• Redeem for purchases: You can redeem your rewards to offset a purchase made with your Wells Fargo card as long as it’s for at least $1 and you have enough rewards to cover the entire purchase.
• Redeem to account: You can have your rewards sent directly to a qualifying Wells Fargo bank account, credit card, or even your mortgage.
• Redeem at an ATM: You can cash out your rewards at a Wells Fargo ATM in $20 increments with a Wells Fargo Debit or ATM card.
• Redeem for gift cards: Like most reward credit cards, you can redeem your points for gift cards in $25 increments.

Also, like the Chase Freedom Unlimited card, you can redeem your rewards for travel purchases, including flights, car rentals, and hotel stays.

Learn more in our Wells Fargo Active Cash review.

Key differences between the two cards

While the Chase Freedom Unlimited and Wells Fargo Active Cash Card have many similarities, there are some differences to consider.

Earning rate

If earning cash rewards for your purchases is a top priority, consider the rewards rates on both cards.

• Chase Freedom Unlimited: 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.
• Wells Fargo Active Cash: Earn unlimited 2% cash rewards on purchases.

The Freedom Unlimited might seem more appealing because it has several bonus categories.

But if you want a low-stress credit card with a simple earning structure, the Active Cash might be the better choice. You don’t have to worry about bonus categories with this card because of its simple rate. Earn unlimited 2% cash rewards on purchases, which covers most purchases including everyday expenses such as gas, groceries, and utilities.

Compare this to the Freedom Unlimited which receives no rewards advantage over the Active Cash for gas, groceries, or utilities. With the Freedom Unlimited, you would earn a 1.5% cash back rate on all other purchases.

Winner: For an everyday, low-stress earning rate, the Active Cash might be a simple option. See more details about this card in our Wells Fargo Active Cash review.

Bonus categories

Earning additional rewards through bonus categories gives your dollars more cashback power, but only if the categories align with your everyday expenses.

The Freedom Unlimited offers 5% total cash back on qualifying Lyft rides through March 31, 2025, 5% cash back on travel purchased through Chase Travel℠, and 3% cash back on drugstore purchases and dining at restaurants, including takeout and eligible delivery service.

The Wells Fargo Active Cash doesn’t have category-specific earning rates. Instead, you can earn unlimited 2% cash rewards on purchases.

Lyft and travel purchased through Chase Travel℠ are specific categories and might not be beneficial on a frequent basis. But earning 3% cash back on drugstore purchases and dining at restaurants, including takeout and eligible delivery service could be valuable in many situations.

Let’s say you typically spend $500 per month on dining and drugstore purchases, $500 per month on groceries, and $250 per month on gas for a total spend of $1,250. This is how much you could earn in cash rewards with each card after one month:

• Chase Freedom Unlimited: $26.25
• Wells Fargo Active Cash: $25

After your first year or $20,000 spent, the Freedom Unlimited offers 3% on drugstore purchases and dining at restaurants, including takeout and eligible delivery service ($500 x 0.03 = $15) and 1.5% on all other purchases ($750 x .015 = $11.25). Your total cash rewards could be $26.25.

The Wells Fargo Active Cash allows you to earn unlimited 2% cash rewards on purchases ($1,250 x .02 = $25) so you could earn a total of $25 in cash rewards.

Winner: Because of its bonus categories, the Freedom Unlimited edges the Active Cash in this example, but different spending patterns may give different results. Learn more about this card in our Chase Freedom Unlimited review.

Travel redemptions

Travel redemptions might not be a big deal for most cardmembers using a cashback rewards credit card. But both of these cards offer ways to redeem your rewards for travel, including flights and hotel stays, and the process varies.

The Freedom Unlimited uses the Chase Ultimate Rewards program, a popular program for frequent travelers, for its redemptions. This is especially true if you have a premium card like the Chase Sapphire Preferred® card as you can transfer your points to it and receive an elevated value for the points through Chase Travel.

The Active Cash uses Wells Fargo Rewards for its travel redemptions, a travel portal that’s not as widely known as its Chase counterpart.

There’s no clear winner here. Apart from more users knowing about and using the Chase travel portal, you’d find that both portals function like third-party travel sites such as Expedia or Priceline. The travel redemption experience would be familiar enough for most cardholders, so neither card stands out.

Protection benefits

Popular credit cards are often known for their valuable protection benefits, including purchase protection, extended warranty protection, and cell phone protection.

The Freedom Unlimited offers both purchase and extended warranty protection but doesn’t offer cell phone protection.

On the other hand, the Active Cash Card offers cell phone protection (subject to a $25 deductible), but it lacks purchase protection and extended warranty protection.

All three protections are helpful to have, but choosing one card over the other based on these benefits alone depends on your situation. Would you rather have extra protection for your eligible purchases or coverage for phones on your cell phone bill?

Winner: Cell phone protection is typically less common, so the Active Cash might have a slight edge over the Freedom Unlimited.

Travel benefits

Travel benefits are something many cards offer, but each has its own terms and conditions.

The Freedom Unlimited provides:

• Trip cancellation or interruption insurance: This insurance might reimburse you if you purchased a flight or a trip that was then canceled or interrupted due to a covered event.
• Auto rental collision damage waiver: This waiver enables you to decline the collision insurance from car rental companies and still be covered. To qualify, you would need to charge the entire rental cost to your card.
• Travel and emergency assistance service: This service helps connect you with medical or legal assistance if you face an emergency while traveling. Keep in mind that you’d still pay for the services you use.

The Active Cash Card offers:

• Roadside dispatch: This service helps put you in touch with a towing company or a locksmith in your area if your car breaks down or you get locked out of your vehicle. You’d be responsible for the costs of the service provider you use.
• Auto rental collision damage waiver: This waiver enables you to decline the collision insurance from car rental companies and still be covered. To qualify, you would need to charge the entire rental cost to your card.
• Visa Signature Hotel Collection: This collection gives you several benefits at a selection of prestigious properties, such as potential room upgrades, complimentary breakfast, and more.
• 24/7 Visa Signature® Concierge: The Visa concierge service is a phone-based service that helps you make travel, dining, and entertainment bookings and reservations. This service is available 24/7 all year long.

Keep in mind that these benefits might not be the most robust travel benefits, but they could be helpful in the right situation. Check out our list of the best travel credit cards to see cards with better travel-related benefits and travel rewards.

There’s no clear winner here. Neither suite of travel benefits is necessarily better than the other as it depends on your preferences. The Freedom Unlimited leans toward travel insurance and assistance, while the Active Cash offers roadside dispatch and Visa Signature benefits. Learn more about Active Cash benefits.

FAQ

Bottom line

The Chase Freedom Unlimited and Wells Fargo Active Cash both offer cash rewards on eligible purchases, but they cater to different audiences.

For example, you might prefer the Active Cash for its cell phone protection and flat rewards rate. But the Freedom Unlimited would make sense if your everyday purchases align with its bonus categories.

To choose the right card, evaluate your average annual spending and see which card would offer you the greatest benefits.

Lucrative, Flat-Rate Cash Rewards

Wells Fargo Active Cash^® Card

5.0

FinanceBuzz writers and editors score cards based on a number of objective features as well as our expert editorial assessment. Our partners do not influence how we rate products.

Wells Fargo Active Cash^® Card

Apply Now

Rates and fees

Current Offer

$200 cash rewards bonus after spending $500 in purchases in the first 3 months

Annual Fee

$0

Rewards Rate

Earn unlimited 2% cash rewards on purchases

Benefits and Drawbacks

Benefits

• Low spend threshold for its welcome offer — $200 cash rewards bonus after spending $500 in purchases in the first 3 months
• Cell phone protection benefit (subject to a $25 deductible)
• Can redeem rewards at an ATM for literal cash

Drawbacks

• Foreign transaction fee of 3%
• No bonus categories

Card Details

• Select “Apply Now” to take advantage of this specific offer and learn more about product features, terms and conditions.
• Earn a $200 cash rewards bonus after spending $500 in purchases in the first 3 months.
• Earn unlimited 2% cash rewards on purchases.
• 0% intro APR for 12 months from account opening on purchases and qualifying balance transfers. 19.49%, 24.49%, or 29.49% Variable APR thereafter; balance transfers made within 120 days qualify for the intro rate and fee of 3% then a BT fee of up to 5%, min: $5.
• $0 annual fee.
• No categories to track or remember and cash rewards don’t expire as long as your account remains open.
• Find tickets to top sports and entertainment events, book travel, make dinner reservations and more with your complimentary 24/7 Visa Signature® Concierge.
• Up to $600 of cell phone protection against damage or theft. Subject to a $25 deductible.

Unlimited Cash Back

Chase Freedom Unlimited^®

4.7

FinanceBuzz writers and editors score cards based on a number of objective features as well as our expert editorial assessment. Our partners do not influence how we rate products.

Chase Freedom Unlimited^®

Apply Now

Current Offer

Earn an extra 1.5% on everything you buy (on up to $20,000 spent in the first year) — worth up to $300 cash back. That's 6.5% on travel purchased through Chase Travel℠, 4.5% on dining and drugstores, and 3% on all other purchases.

Annual Fee

$0

Rewards 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

Benefits and Drawbacks

Benefits

• High base rewards rate of 1.5%
• $0 annual fee
• Valuable welcome bonus for new cardholders
• Intro APR offers for purchases and balance transfers

Drawbacks

• Has a foreign transaction fee of 3% of each transaction in U.S. dollars
• No bonus categories for gas or groceries

Card Details

• INTRO OFFER: Earn an additional 1.5% cash back on everything you buy (on up to $20,000 spent in the first year) - worth up to $300 cash back!
• Enjoy 6.5% cash back on travel purchased through Chase Travel℠, our premier rewards program that lets you redeem rewards for cash back, travel, gift cards and more; 4.5% cash back on drugstore purchases and dining at restaurants, including takeout and eligible delivery service, and 3% on all other purchases (on up to $20,000 spent in the first year).
• After your first year or $20,000 spent, enjoy 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.
• No minimum to redeem for cash back. You can choose to receive a statement credit or direct deposit into most U.S. checking and savings accounts. Cash Back rewards do not expire as long as your account is open!
• Enjoy 0% Intro APR for 15 months from account opening on purchases and balance transfers, then a variable APR of 19.99% - 28.74%.
• No annual fee – You won't have to pay an annual fee for all the great features that come with your Freedom Unlimited® card
• Keep tabs on your credit health, Chase Credit Journey helps you monitor your credit with free access to your latest score, alerts, and more.
• Member FDIC