Chase Freedom Unlimited: 3x Ultimate Rewards Points on All Purchases for 12 Months

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Via Doctor of Credit, Chase has a new bonus for the Freedom Unlimited credit card offering 3x Ultimate Rewards points on all purchases for your first year. Note that there is no other signup bonus associated with this offer and that this card is subject to the 5/24 rule.

Also note that if you have a premium Chase card (e.g. Sapphire Reserve, Sapphire Preferred, Ink Plus, etc.), you can transfer the points from your Freedom Unlimited card to your premium card, which would allow you to then transfer those points to airline and hotel programs. Also note that if you are a Chase Sapphire Reserve cardholder, you can use these points to pay for travel at a rate of 1.5 cents per point.

Personally, I don’t like to sign up for a new credit card unless it’s bonus is worth around $500. Let’s compare this card to an offer like that using the following assumptions:

  • Comparison card offers $500 back after $5,000 spend in 3 months.
  • Comparison card earns the equivalent of 1% cash back, so after completing minimum spend, you will have $550.
  • You use a 2% cash back card for any other spend.
  • Ultimate Rewards points are worth 1.5 cents each (this is fairly conservative).

With those assumptions in mind, the break-even point for this credit card is $18,000 of spend in a year ($810 rewards assuming 4.5% in value back vs. $550 from the comparison card signup + $260 from $13,000 additional spend on a 2% cash back card). Essentially, you would be coming out ahead if you spent over $1,500 per month. I don’t think that’s that difficult for most people to do, so this offer may be well worth it if you are under 5/24.

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