Chase Freedom Unlimited: Ways to use the $300 cash sign-up bonus

One of the best perks of opening up a Chase Freedom Unlimited® credit card is its latest welcome offer. New cardholders can earn an additional 1.5 percent cash back on all purchases, up to $20,000 spent in the first year. Compared to the card’s typical offer of $200 after spending $500 in the first three months, this can add up to an extra $100 boost for a value of $300 in total. It effectively brings the rewards rates up to 6.5 percent on travel booked through Chase Travel, 4.5 percent on dining and drugstores, and 3 percent on everything else for the first year.

In this guide, we cover the requirements for qualifying for the bonus, the best ways to use the bonus and other details about the Chase Freedom Unlimited card.

Details of the Chase Freedom Unlimited

Why the Chase Freedom Unlimited’s sign-up bonus is worth noting

Earning up to $300 in cash back as a welcome bonus is a pretty good offer, but earning 6.5 percent back on travel purchased through Chase Travel is a huge (and rare) perk for a card with no annual fee. Keep in mind that this welcome offer is one of the top-notch offers for no-annual-fee cards since new cardmembers still get the multiplied rewards on everything they spend up to $20,000. This applies even if you don’t meet the minimum spending goal.

Unlike the previous welcome offer, which allowed you to earn $200 cash back after spending $500 within the first three months, this offer allows you to max out the bonus cash back and earn all year long.

The Chase Freedom Unlimited is already one of the best cash back cards on the market, but with its latest offer for new cardholders, it just got even better.

How to qualify for the Chase Freedom Unlimited’s sign-up bonus

This welcome bonus is unique in that there isn’t a specific spending requirement to qualify for its perks. New cardholders automatically receive boosted rates on their spending — up to $20,000 within their first year. Only when this offer is maxed out does the full $300 cash back value hold true, so some cardmembers may not find this offer to be as appealing if they prefer a lump sum of bonus cash.

How much is the Chase Freedom Unlimited’s sign-up bonus worth?

Each Chase Ultimate Rewards point is worth 1 cent if redeemed for cash, according to points and miles valuations by Bankrate. Using only the Chase Freedom Unlimited, points are also worth 1 cent when redeemed for travel, gift cards and Apple purchases. Points are worth 0.8 cents when redeemed for Amazon purchases and 1.0 cents when redeemed for qualifying charitable giving through the Pay Yourself Back program.

However, your rewards can be even more valuable if you have a premium Chase Ultimate Rewards card, like the Chase Sapphire Reserve® or Chase Sapphire Preferred® Card. By transferring rewards earned with the Chase Freedom Unlimited to one of these cards, you can increase their value, since you could continue to earn on the accelerated rate.

For example, if the regular earning rate for everyday purchases on the Chase Freedom Unlimited is 1.5 percent and you get an extra 1.5 percent, you’re earning much faster than if you were putting the same spend on your Chase Sapphire Reserve or Chase Sapphire Preferred — giving you more points to transfer or use in the travel portal (also at the increased redemption value). Points redeemed for travel through the Chase Travel portal are worth 1.25 cents using the Chase Sapphire Preferred and 1.5 cents using the Chase Sapphire Reserve.

Holding those premium cards, or any Chase card that earns Unlimited Rewards points, also opens up the possibility of transferring your points to one of Chase’s airline or hotel loyalty partners, where you can see your points go even further.

Best ways to use the Chase Freedom Unlimited’s sign-up bonus

For many cardholders, especially those who don’t travel frequently or don’t want to spend time maxing out their rewards-earning potential, a cash direct deposit or statement credit may be the path of least resistance and the greatest value to their budget — and there’s nothing wrong with that if it best fits your needs!

That said, there are a few other redemption options you should consider to maximize your card’s sign-up bonus value. For instance, if you own an additional Chase credit card, such as the Sapphire Reserve or Preferred, you can transfer your welcome bonus in the form of Chase Ultimate Rewards points to one of those cards, where they can then be redeemed for travel purchases at a higher rate.

Chase also features a shopping portal with offers from retail partners in the form of discounted gift cards, product offerings and more. Before you redeem your rewards, it’s a good idea to browse the offerings in the portal to make sure you’re not missing out on any good deals from your favorite retailers.

Redemption options to avoid

With most redemption options worth 1 cent apiece, including cash back, statement credits and gift cards, there are many good ways to take advantage of your rewards. However, an area you might want to steer clear of is redeeming your rewards for Amazon purchases. Since points are only valued at 0.8 cents when redeemed through Amazon, there are more valuable ways to put your hard-earned rewards to work.

You should also think carefully before redeeming points to purchase gift cards or items through the Chase Travel portal. While these redemption options can be as valuable as cash (and sometimes even more so), they can also encourage you to make purchases you might not have under other circumstances. If you’re on a budget and trying to cut down spending wherever possible, you can’t go wrong with redeeming your rewards for cash or statement credit.

The bottom line

Along with lucrative rewards and no annual fee, the Chase Freedom Unlimited’s welcome bonus is one of the card’s top selling points. Cardholders have a full year to earn boosted rewards rates on up to $20,000, which benefits borrowers with a wide variety of budgets and spending habits.

How you make the most of the welcome bonus is ultimately up to you. A cash deposit, statement credit, travel purchases, gift cards or even charitable giving are all great options. If you’re pairing the Chase Freedom Unlimited with other Chase credit cards, like the Sapphire Reserve or Preferred, you can transfer your welcome bonus rewards to these cards for even more valuable redemption options.