Chase Freedom Unlimited vs. Sapphire Preferred: Do you need both? #CashNews.co

The Chase Sapphire Preferred® Card and the Chase Freedom Unlimited® are among the best rewards credit cards on the market. But while the two cards share the same rewards program, their rewards rates and redemption options differ.

The right one for you depends on how you spend your money and how you want to use your credit card points. It may even make sense to use both cards and make the most of your everyday spending. Here’s what you need to know.

Chase Freedom Unlimited overview

Why we like it: The Chase Freedom Unlimited offers a high base rewards rate and bonus rewards on some everyday spending categories. What’s more, new cardholders can enjoy a solid welcome bonus for a no-annual-fee card, as well as an introductory 0% APR on both purchases and balance transfers.

While it’s billed as a cash-back credit card, you can also use your rewards to book travel. However, you won’t get bonus value on those redemptions or access to the issuer’s transfer partners unless you also have one of Chase’s flagship travel cards.

Chase Freedom Unlimited pros

• Solid rewards rates: Most cash-back cards offer either bonus rewards in certain categories or a high flat rewards rate, but you’ll get both with the Freedom Unlimited.

• Intro 0% APR: The card offers an introductory 0% APR on purchases and balance transfers for 15 months. After that, the variable APR ranges from 20.49% to 29.24%.

• No annual fee: The Freedom Unlimited’s lack of an annual fee makes it a good fit for people trying to minimize costs.

Chase Freedom Unlimited cons

• No transfer partners: If you want to maximize rewards for travel, the Freedom Unlimited isn’t the strongest option — at least not on its own. You’d need to pair it with the Sapphire Preferred, the Chase Sapphire Reserve® or the Ink Business Preferred® Credit Card to gain access to transfer partners.

• Minimal travel perks: The card does offer a few trip protections, but if you want more travel benefits, you’ll need to look elsewhere.

• Charges a foreign transaction fee: As a cash-back credit card, the Freedom Unlimited doesn’t waive the foreign transaction fee like most travel cards do. If you plan to take a trip abroad, you’ll pay a 3% fee on every international purchase.

Chase Sapphire Preferred Card overview

Why we like it: The Chase Sapphire Preferred Card offers impressive rewards rates, making it easy to rack up points on several common spending categories. When you’re ready to redeem, you’ll get 25% more value if you use your points to book travel through Chase.

Alternatively, you can transfer your rewards to more than a dozen airline and hotel loyalty programs, allowing you to squeeze even more value out of your points. While the card charges an annual fee, you can offset some of that cost with its annual $50 statement credit toward hotel stays booked through Chase.

Chase Sapphire Preferred Card pros

• Sizable welcome bonus: New cardholders can earn up to $750 in value from the card’s welcome offer when using those points to book travel. Few rewards credit cards can top that.

• Flexible redemption options: While the Sapphire Preferred is a travel credit card, you can redeem your rewards for things like cash back or gift cards at a rate of 1 cent per point. However, you’ll get 25% more value if you use them to book travel through Chase — and if you’re a savvy traveler, you can take advantage of Chase’s transfer partners for even more flexibility.

• Travel benefits: In addition to the card’s $50 annual hotel benefit, you’ll also get no foreign transaction fees and several trip protections.

Chase Sapphire Preferred Card cons

• Charges an annual fee: Depending on how you use the Sapphire Preferred Card, you can easily earn the value of the card’s annual fee back each year. But if you’re generally fee-averse, it may still be a deal breaker.

• High spending requirement for welcome bonus: You’ll need to spend $4,000 in three months to earn the card’s welcome offer — or about $1,330 per month. If you can meet that requirement without overspending, it won’t be a problem. But if you need to stretch your budget to earn those rewards, it may not be worth it.

• Maximizing rewards requires strategy: You can get up to 1.25 cents per point if you redeem your points through Chase Travel. But if you want to maximize your rewards with transfer partners, it may take considerable research to find the most valuable redemptions.

Should you get the Chase Freedom Unlimited?

With the Freedom Unlimited, you’ll get great rewards on all your spending and some flexible redemption options. The card also offers an introductory 0% APR, making it worthwhile for people interested in paying down a large purchase interest-free or tackling high-interest credit card debt.

However, the card may not be the right fit for travel-minded consumers who want to get more value on travel redemptions and enjoy more travel benefits.

Should you get the Chase Sapphire Preferred Card?

The Sapphire Preferred Card has one of the most versatile rewards programs we’ve seen. In addition to several bonus rewards categories, the card offers a wide selection of redemption options.

If you’re a travel rewards enthusiast or looking to learn more about maximizing credit card rewards for travel, the Sapphire Preferred is an excellent place to start.

However, it might not be the right choice if you want an introductory 0% APR promotion or if you’re on a tight budget and the card’s annual fee and minimum spending requirement on its welcome bonus are too much.

Should you get both cards?

If you want to make the most of all of your spending and enjoy all the benefits the Ultimate Rewards program offers, it can make sense to use both the Chase Freedom Unlimited and Sapphire Preferred.

Chase allows cardholders to combine Ultimate Rewards points earned with different cards. This allows you to use both the Sapphire Preferred and Freedom Unlimited for their distinct bonus rewards categories and the Freedom Unlimited for all non-bonus spending.

Then, you can transfer your points earned with the Freedom Unlimited to your Sapphire Preferred account, giving you access to extra value on travel redemptions and transfer partners.

Other cards to consider

If you’re not sold on the Chase Freedom Unlimited or the Chase Sapphire Preferred, here are some alternatives to compare.

Why we like it: The Capital One Venture Rewards Credit Card offers an impressive welcome bonus and a minimum of 2 miles per dollar on every purchase you make. When it comes to redeeming your rewards, you can use miles to book travel through the Capital One Travel portal or simply use your card to book travel on your own and request a statement credit.

The card also offers access to 15+ transfer partners, as well as an application fee credit toward Global Entry or TSA PreCheck and elite benefits with Hertz car rentals.

Why we like it: The Chase Sapphire Reserve® is a step up from the Sapphire Preferred, both in terms of rewards and benefits. The card offers the same welcome bonus, but you’ll get higher reward rates on select purchases. Instead of 25% bonus value on travel redemptions with Chase, the Sapphire Reserve gives you 50%. You’ll also get the same transfer partners as the Sapphire Preferred.

The card also comes with an annual $300 travel credit, complimentary access to Priority Pass and Chase Sapphire lounges, and other premium travel perks. That said, this card does require excellent credit and its hefty annual fee makes it worth considering only if you’re a frequent traveler.

Why we like it: If you want uncomplicated cash-back rewards, consider the Wells Fargo Active Cash® Card, which offers a flat 2% cash back on every purchase. The card also offers a modest welcome bonus and a solid introductory 0% APR promotion on both purchases and qualifying balance transfers.

The card also has a $0 annual fee. However, there’s no way to directly redeem rewards for travel, and there are no transfer partners.

This article was edited by Alicia Hahn

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