If you’re in the market for a new cash-back credit card, Chase Freedom Unlimited and Blue Cash Preferred are two options you should definitely consider. Both cards offer the opportunity to earn substantial cash-back rewards at a reasonable cost.
How the Cards Stack Up
While Amex Blue Cash Preferred is our top pick, Chase Freedom Unlimited is a close contender. Here’s why:
| Chase Freedom Unlimited | Blue Cash Preferred | |
|---|---|---|
With Chase Freedom Unlimited, there is no annual fee. Blue Cash Preferred, on the other hand, is free for the first year and then charges $95 per year (Rates & Fees). Despite the fee, Blue Cash Preferred offers an incredible range of benefits that make it well worth the cost.
Welcome Bonus
In terms of welcome bonuses, Blue Cash Preferred takes the lead. To qualify for the $250 welcome bonus, you simply need to make purchases totaling at least $3,000 within the first six months. This is an achievable goal for most cardholders, making Blue Cash Preferred the better deal in this category.
Rewards
When it comes to rewards, the winner depends on your spending habits. Here’s how the reward programs break down for each card:
Chase Freedom Unlimited:
- 5% cash back on travel purchased through the Chase Ultimate Rewards portal
- 3% cash back on dining and drugstore purchases
- 1.5% cash back on all other purchases
Blue Cash Preferred:
- 6% cash back on U.S. supermarket purchases (up to $6,000 per year, then 1%)
- 6% cash back on select streaming service subscriptions
- 3% cash back on gas station and transportation-related purchases
- 1% cash back on all other purchases
- Terms Apply
It’s worth noting that rewards earned with Chase Freedom Unlimited never expire, and there are no minimum cash-back requirements for redemption. Blue Cash Preferred’s 6% cash back on supermarket purchases is capped at $6,000 annually, after which the cash-back reward drops to 1%.
Annual Fee
In terms of annual fees, Chase Freedom Unlimited comes out on top with no annual fee. Blue Cash Preferred, however, charges an annual fee of $95 (Rates & Fees).
APR
The APR ranges for both cards are relatively close. Chase Freedom Unlimited offers a competitive APR, while Blue Cash Preferred’s APR is slightly higher (Rates & Fees). Overall, Chase Freedom Unlimited is the better choice due to its lower maximum APR and slightly longer interest-free period for purchases and balance transfers.
Foreign Transaction Fee
Blue Cash Preferred is the winner in this category, as it only charges a foreign transaction fee (Rates & Fees). Chase Freedom Unlimited, on the other hand, charges a slightly higher foreign transaction fee, making Blue Cash Preferred the top pick for international purchases.
Additional Perks
Both cards offer impressive benefits considering their annual fees. Chase Freedom Unlimited offers an annual referral cash-back bonus of $100 for each friend who gets any participating Chase Freedom credit card. It also provides purchase and extended warranty protections, trip cancellation/interruption insurance, auto rental coverage, emergency travel assistance, discounts and incentives for Instacart, DoorDash, and Lyft, and free credit score updates with Chase Credit Journey.
Blue Cash Preferred provides travel and purchase protections, a monthly statement credit for The Disney Bundle, return protection, exclusive access to entertainment experiences, auto rental coverage, and emergency travel assistance.
With the presence of additional perks such as Chase Credit Journey and the annual referral bonus, Chase Freedom Unlimited takes the lead in this category.
Which Card Earns the Most?
The earning potential of each card depends on your spending. Here’s a breakdown of what you can earn when you spend $800 in each category:
| Chase Freedom Unlimited | ||||||
|---|---|---|---|---|---|---|
| ———————— | ———————— | ———————— | ———————— | ———————— | ———————— | ———————— |
For everyday spending, Blue Cash Preferred has the highest earning potential. It provides generous rewards for grocery and gasoline purchases, as well as transportation expenses. However, if you’re a frequent traveler, Chase Freedom Unlimited may be the better option. It offers a generous 5% cash back on travel arrangements booked through the Chase Ultimate Rewards portal, compared to the 1% offered by Blue Cash Preferred.
Our Recommendations
We recommend Blue Cash Preferred for its generous $250 cash-back welcome bonus, higher rewards for common purchases such as supermarket spending and transportation, and a range of perks without an annual fee for the first year (Rates & Fees).
However, Chase Freedom Unlimited is still worth considering for its easily accessible welcome cash-back bonus, travel rewards, and benefits. It’s especially appealing to individuals who dine out frequently, spend heavily at drugstores, and want to consolidate debt, as it offers a 15-month interest-free introductory period on balance transfers.
The bottom line is that both cards are a good fit for cash-back rewards, but the best choice for you depends on your spending habits. Assess your spending patterns to determine which card will provide the most value for your money.
For rates and fees of the Blue Cash Preferred Card from American Express, please visit this URL.
Frequently Asked Questions (FAQs)
When should I use Chase Freedom Unlimited vs. Blue Cash Preferred?
Chase Freedom Unlimited is ideal for maximizing earnings on travel, dining, and drugstore purchases. On the other hand, Blue Cash Preferred offers higher cash back on grocery, gas station, and select streaming service purchases.
Is it worth upgrading to the Blue Cash Preferred Card from American Express?
It depends on your spending patterns. The Blue Cash Preferred Card has an annual fee (Rates & Fees), so it’s best to have the majority of your spending in the bonus categories to make the card worthwhile.
Is Chase Freedom Unlimited hard to get?
Chase Freedom Unlimited caters to consumers with good or excellent credit. A credit score of at least 700 is preferred. The APR you’ll pay once the introductory interest-free period ends is determined by your credit score.
Which alternative credit cards are there for everyday purchases?
There are several options to choose from. Some of the better picks include the [Card Name] and the [Card Name].
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