The Offer
Chase released a new signup bonus on their Freedom Unlimited card:
- Get an extra 1.5% back per dollar spent in all categories during the first year, up to $20,000 in spend ($300 bonus cashback).
Card Details
- No annual fee
- Card earns 1.5% cash back (really 1.5x Chase UR points) per $1 spent on all purchases
- 0% Introductory APR for 15 months on purchases and balance transfers (5% balance transfer fee)
- Full review here
Our Verdict
This is an interesting offer. While advertised as an extra 1.5% back, it’s actually 1.5x Ultimate Rewards back. Let’s say you value those points at 1.5 cents per point, this would actually be an extra 2.25% back on all purchases (4.5% back on all purchases). And the “$300” max would actually be $450 max – a good deal for a no-fee card. And this offer can be maximized either with unbonused spend, e.g. paying taxes, or on bonused spend, e.g. to earn 3x + 1.5x on drugstore or dining spend.
The older 5x on Grocery (up to $12,000) during the first year is still around and still showing at referral links, but it might be ending soon so be sure to do that offer soon if it interests you more. There’s also a newer 5x on Gas (up to $6,000) during the first year offer we once mentioned which seems to be gaining more traction now at various links and might end up being the official offer going forward on some of the Freedom cards.
Hat tip to DDG
Got some targeted snail mail today, $200 SUB after $500 spend with no limit on the 1.5% everywhere. I am 5/24 so this surprised me, but my application did to go under review.
Approved for 18k limit
Last time they did this I remember hearing about users signing up with a referral link to get both the $200 SUB and the 3X offer.
I am wondering if this +1.5% will also apply to the FLEX card. On Chase’s http://www….they have ‘New Offer” on both of their Freedom cards. And is there a way they can just add the 1.5 to a newbie account? Or does an application have to occur?
This seemed like a great offer until you realize they took out the SUB. Essentially now you have to spend a lot of money to make up the SUB.
Good observation. I didn’t notice that.
Yeah. If I’m going to run $20,000 through my card, I’d expect to get a whole lot more than 60,000 points out of it.
Really, it’s only an extra 30,000 UR since you would have gotten the first 1.5x anyway. Just a flat $200 SUB gets you 10,000 less UR for $19,500 less spending.
Those opening a new Discover every year to keep 3% should take note. Also likely the best restaurant card at 4.5x (~6.75%). Even competitive with CSP once you factor in the annual fee.
However, lack of an up-front SUB hurts. Compared to the random Gesa CU 1.5% with $300 SUB, you’d need to spend $10k to break even, or $8k against a 2%/$200 card. I’d say if you’re opening two cards a year you can probably beat this.
30K for 20K spend? Hard pass. Far better bonuses out there that require far less spend
It would be 60K (1.5 regular + 1.5 1st year = 3x points) on 20K spend. Still not great.
Base earning isn’t typically factored into a SUB, the CSP isn’t 64,000 UR.
Not a bad bonus at all. $20,000 spend at drugstores at 4.5 cpp along with the CSR’s PYB means you can get $1,350 in cashback.
That’s a lot of restaurants to use PYB on. But good for use through the travel portal using CSR.
I feel sorry for you if you can easily spend $20k at drugstores in a year (and it’s not just MS). Way better bonuses to pick up if you have $20k of spend…
I assume they would be buying gift cards which seems to be a huge hassle.
$900 of which is on unbonused spend. Then remove the 1.5 PYB multiplier which again is unrelated and you end up with a $300 bonus for $20,000 spend.
Bingo!
It’s actually only $300 “bonus” since you get the 3ccp regardless. So this is basically a 30k UR point “sign-up” bonus if you manage to put 20k on it within a year. Not terrible but pretty pedestrian IMO. The only think I like about this is that it would fill a need for me for good earning on grocery spend @ 3% since I just upgraded my AMEX Gold to Plat and no longer have that 4X on groceries.
I originally saw this and was in favor but then saw that it offers no SUB, which makes it not worthwhile at all. Currently the gas offer is the one that shows up for me, which I am grateful — because it is much better than the other one.
Even the flat 20,000 UR on $500 spend is better than 30,000 extra UR for $20,000. Anything else is just gravy.
10,000 UR more for $19,500 more spend is just an extra 1/2 UR! The breakeven doesn’t happen until $13,334!
This would be an excellent option for paying some estimated taxes. With fees being just shy of 2%, this will be a net of at least 1% on the $20k, or $200. Plus the 15 month at 0% gives extra time to float the balance while only paying the minimum, which is quite valuable for active traders who don’t want to withdraw a lump-sum from their brokerage account.
If they kept the 10k UR @ $200 MSR this would be great, but sunsetting that 10k SUB makes this pretty eh imo. Obviously not good for churning but for people who need their first CC I’m questionable.
I really like the CFU as an everyday card though — Amex, Citi, and Fidelity offerings on no-AF decent X/% all lack the benefits I expect from an credit card (warranty, purchase protection, insurance, etc.). Definitely my go to recommendation for friends who are debit only type of people, not sure how I feel about this new offer as I recommend the CFU to all of them. Maybe better because they’ll have a higher spend and aren’t allocating spend to MSRs constantly…still haven’t made my mind up.