Chase Freedom Flex vs. Chase Freedom Unlimited

The Chase Freedom Flex℠, or the Chase Freedom Unlimited®? The card names sound the same, and at a glance the rewards are similar.

Not so fast: Though the cards have a lot in common, there are a few key differences to keep in mind when deciding which is the best fit for you.

Both the Chase Freedom Flex and Chase Freedom Unlimited offer hefty sign-up bonuses, along with bonus cash back on dining and drugstore purchases, as well as travel purchased through Chase Ultimate Rewards. The difference is their rewards structures: The Freedom Flex card offers 5% cash back on rotating quarterly categories, while the Chase Freedom Unlimited offers a flat-rate 1.5% cash back on everything.

Read on to get a rundown on the pros and cons of each card, as well as which card is best suited for you, based on your spending habits.

Chase Freedom Flex versus Chase Freedom Unlimited

Chase Freedom Flex
Chase Freedom Flex℠
Chase Freedom Unlimited
Chase Freedom Unlimited®
Rewards rate
  • 5% rotating quarterly categories (upon enrollment, on up to $1,500 in spending per quarter, then 1%)
  • 5% cash back on travel purchased through Chase Ultimate Rewards
  • 3% cash back on dining
  • 3% cash back on drugstore purchases
  • 1% cash back on other purchases
  • 5% cash back on travel purchased through Chase Ultimate Rewards
  • 3% cash back on dining
  • 3% cash back on drugstore purchases
  • 1.5% cash back on all other purchases
Sign-up bonus $200 if you spend $500 in first 3 months
  • $200 if you spend $500 in first 3 months
Annual fee $0 $0
Estimated yearly rewards value ($1,325 monthly spend, including sign-up bonus) $532 $405
Pros
  • No annual fee
  • High rewards rate on both specific categories year-round and on rotating categories
  • Large sign-up bonus
  • Can transfer rewards to other Chase cards
  • No annual fee
  • High general rewards rate
  • Large sign-up bonus
  • Can transfer rewards to other Chase cards
Cons
  • Requires some maintenance
  • Can be difficult to max out rotating categories (may not always align with spending)
  • Low cash back rate on general purchases
  • Not the highest rate available on general purchases
Who should get this card?
  • Rewards maximizers
  • People who want to collect Ultimate Rewards points
  • People who like cash back variety
  • People who want to earn Ultimate Rewards points without paying an annual fee
  • People who want to keep it simple
  • People who want to earn bonus cash back in both specific categories and general purchases
  • People who want to earn Ultimate Rewards points without paying an annual fee

Chase Freedom Flex overview

The Chase Freedom Flex card offers a combination of year-round and quarterly-rotating bonus cash back categories. Each quarter, you can enroll in a new bonus category from the Chase cash back calendar and earn 5% back on the first $1,500 you spend in that category (then 1% back after you reach the $1,500 threshold). Throughout the year, you’ll also get 5% back on all travel booked through the Chase Ultimate Rewards portal, 3% back on dining and drugstore purchases and 1% back on all other purchases.

Upsides: The opportunity to earn bonus cash back in select categories year-round and in a variety of categories each quarter.

Downsides: The complex rewards program. To get the most out of the card, cardholders must track their spending, since the 5% rate only applies to certain categories that rotate frequently and is limited to $1,500 per quarter.

Furthermore, cardholders must log in to their Chase account and activate their rewards category by the deadline each quarter to earn the 5% rate. For example, to earn 5% cash back during the first quarter of 2021 (on select streaming services, phone, cable and internet services and at wholesale clubs), you must activate the category by March 14, 2021.

Chase 5% cash back calendar 2021

Winter Spring Summer Holiday
January – March April – June July – September October – December
  • Select streaming services
  • Phone, cable and internet services
  • Wholesale clubs
TBA TBA TBA

Chase Freedom Unlimited overview

Like the Freedom Flex, the Freedom Unlimited earns bonus cash back on Ultimate Rewards travel (5% back) and dining and drugstore purchases (3% back). However, instead of rotating cash back categories, the Freedom Unlimited offers 1.5% cash back on general purchases. There’s also no annual fee, and no interest on purchases for 15 months from account opening (after which a variable APR of 14.99% to 23.74% applies). The card is currently offering a $200 bonus for spending $500 in the first three months.

Upsides: The Freedom Unlimited card offers a straightforward rewards program that allows cardholders to earn at least 1.5% on every purchase they make – with no earning caps or rotating categories.

Downsides: Although 1.5% cash back is a substantial amount to earn on general purchases, it’s not the highest rate out there.

trio of Ultimate Rewards cards.

See related: Chase Ultimate Rewards guide: The best ways to earn and use Ultimate Rewards points

*All information about the Chase Sapphire Preferred Card has been collected independently by CreditCards.com and has not been reviewed by the issuer. 

The editorial content below is based solely on the objective assessment of our writers and is not driven by advertising dollars. However, we do receive compensation when you click on links to products from our partners. Learn more about our advertising policy

Source: creditcards.com

Amazon Prime Card offering new Whole Foods card art, limited-time bonus

On Jan. 20, 2021, Chase announced a new card art option for the Amazon Prime Rewards Visa Signature card featuring Whole Foods Market and added a limited-time sign-up bonus offer for those who prefer to shop at Whole Foods in-store.

Amazon has become a leader in grocery shopping during the pandemic, with consumers avoiding grocery stores due to health safety concerns – not to mention the convenience of shopping from a web browser. Amazon Prime members can enjoy speedy free delivery, as well as get access to online shopping at Whole Foods Market and special member deals when shopping in-store.

They can also count on extra savings if they carry the Amazon Prime Rewards card from Chase – or if they’re looking to apply in the next few weeks.

Here’s what you need to know.

Amazon Prime Rewards Visa Signature card

Amazon Prime Card Whole Foods

Our rating: 3.8 out of 5
Score required: Good to excellent
Type of card: Cash back
Spending categories: Amazon, Whole Foods, restaurants, gas stations, drug stores

  • 5% back on Amazon.com and Whole Foods purchases
  • 2% back on restaurant, gas station and drug store purchases
  • 1% back on other purchases
  • $70 Amazon.com gift card upon approval or $100 statement credit after spending $100 at Whole Foods in first 2 months
  • No annual fee

Our take: While the Amazon Prime Rewards card offers excellent cash back on Amazon and Whole Food purchases, it might not be the best choice for customers who don’t currently have a Prime membership and aren’t looking to subscribe.

A new Whole Foods card design and limited-time offer

Chase introduced a new card design option for new Amazon Prime Rewards cardholders, featuring Whole Foods Market art. New cardmembers with an eligible Prime membership can choose the new design when they apply for the card. If you’re an existing cardholder and would like to switch to the new design option, you can call in to request a new card after Jan. 22, 2021.

If you frequently shop at Whole Foods in-store, the new limited-time introductory offer can also be exciting news for you. Through March 3, 2021, new Amazon Prime Rewards Visa cardholders can earn a $100 statement credit after spending $100 in Whole Foods Market stores in the first two months from account opening. Alternatively, they can still choose the standard $70 Amazon gift card offer as a sign-up bonus.

Considering the standard bonus is lower, the new temporary offer might be a better deal. On the other hand, if you avoid shopping in-store or normally use Amazon Fresh for buying groceries, the gift card might make more sense for you.

Should I start shopping at Whole Foods if I have an Amazon credit card?

If you already shop at Whole Foods, the 5% back with the Amazon Prime Rewards Signature Visa and 10% off specially marked items is a good deal. The discounts, though, don’t make Whole Foods cheaper than other grocery stores.

In fact, according to a study from 2019, Whole Foods remains the most expensive grocery store with its prices at 34% above Walmart, which was reported to have the lowest prices overall. If your goal is to save on groceries, Whole Foods is evidently not the best option – even if you carry the Amazon Prime card.

Other cards to consider

The Amazon Prime Card isn’t the only option you should consider if you often shop on Amazon or at Whole Foods.

See related: Which is the best card to use on Amazon.com purchases?

For instance, with the Chase Amazon.com Rewards Visa card, you can get a $50 Amazon gift card upon approval and earn 3% on Amazon and Whole Foods purchases, 2% percent at restaurants, gas stations and drugstores and 1% on all else. If you don’t have a Prime membership and aren’t looking to subscribe, this is a good option, since the card doesn’t require for a cardholder to be a member.

If you do have a membership and shop on Amazon a lot, the Amazon Prime card is a better deal. With 5% for purchases made at Whole Foods and on Amazon, 2% at restaurants, gas stations and drugstores and 1% on all else, this card is hard to beat for Amazon and Whole Foods lovers.

If you’re looking for a card to buy groceries, consider the Blue Cash Preferred® Card from American Express that could save you more than with the Amazon Prime Visa at Whole Foods. Why? Blue Cash Preferred cardholders earn 6% cash back at U.S. supermarkets (up to $6,000 in purchases per year, then 1%).

See related: Best credit cards for grocery shopping

Bottom line

Now you can stack your rewards at Whole Foods, earning cash back and the limited-time bonus with the Amazon Prime Card, and you can get extra savings from the loyalty program. Whether it makes sense to shop at Whole Foods, even with rewards cards and the loyalty program, is up to you.

Source: creditcards.com

Best cards for food delivery and meal kit subscriptions

Credit cards for foodies are the latest trend, with more and more rewards programs and additional card benefits catering to both dining in and eating out. Restaurant and grocery bonus categories are becoming commonplace – letting cardholders rack up a few extra points or cash back on those purchases.

But what about those who prefer to order delivery? If you like to take advantage of popular food delivery services like DoorDash or Uber Eats or simplify cooking with a meal kit subscription, there are plenty of credit card rewards and benefits you can leverage to save a little money.

Finding the best card for your favorite services

Finding the best card for your favorite food delivery or meal kit service depends on a variety of factors, including the card’s yearly credits, special perks or rewards rate. For example, many dining cards offer bonuses that are tailored to a specific delivery service, as a monthly Uber credit.

See Related: Food delivery perks on luxury travel cards

For meal kit services, matching rewards is a little more complicated. You could opt for a rewarding grocery card, as many meal kit brands are now partnered with major supermarkets – so you can buy them in the store.

merchant category code that qualifies for a point or cash back bonus. You can test it by making a small charge to your card and seeing what rewards you earn.

Online shopping rewards, on the other hand, are much more flexible. They apply to both web and app purchases, so whether your order from your phone or computer, you can rack up bonus points or cash back.

See Related: Make the most of an online shopping bonus category

Best cards by delivery service or meal kit subscription

With all this in mind, here are some of our favorite cards for some of the most popular food delivery and meal kit subscription services.

Delivery service Card Rewards rate Why we like it
DoorDash Chase Sapphire Reserve
  • 10 points per dollar on Lyft purchases (through March 2022)
  • 3 points per dollar on travel and restaurants (excluding purchases covered by $300 travel credit)
  • 1 point per dollar on general purchases
  • Generous rate on dining purchases
  • Receive a yearly statement credit for DoorDash purchases ($60 in 2020 and $60 in 2021)
  • Get at least one free year of DashPass when you enroll with your card (activate by Dec. 31, 2021)
Uber Eats The Platinum Card® from American Express
  • 10 points per dollar on eligible purchases at U.S. gas stations and U.S. supermarkets, on up to $15,000 in combined purchases, during the first 6 months of card membership
  • 5 points per dollar on flights booked directly with airlines or with American Express Travel (starting January 1, 2021, earn 5X points on up to $500,000 on these purchases per calendar year)
  • 5 points per dollar on eligible hotels booked with amextravel.com (starting January 1, 2021, earn 5X points on up to $500,000 on these purchases per calendar year)
  • 1 point per dollar on general purchases
  • Terms apply
  • Get up to $200 in Uber credits per year ($15 per month, plus an extra $20 in December), which can be applied to Uber Eats
  • Automatic Uber VIP membership (where available) without ride requirements
Instacart Capital One Savor Cash Rewards Credit Card
  • 8% cash back on Vivid Seats tickets (through Jan. 2022)
  • 4% cash back on dining and entertainment
  • 2% cash back at grocery stores
  • 1% cash back on all other purchases
  • Top-tier cash back on restaurant delivery, including most delivery services
  • Grocery bonus category includes eligible grocery delivery services, including Instacart
  • As a Mastercard, offers complimentary a 2-month Instacart Express membership if enrolled before Mar. 31, 2021
Grubhub/Seamless/Boxed/Instacart American Express® Gold Card
  • 4 points per dollar at restaurants worldwide
  • 4 points per dollar at U.S. supermarkets (on up to $25,000 in purchases per year, then 1 point)
  • 3 points per dollar on flights booked directly with airlines or amextravel.com
  • 1 point per dollar on other purchases
  • Terms apply
  • Enroll to receive up to $10 in statement credits per month (up to $120 per year) to use at participating restaurants, including Grubhub, Seamless and Boxed
  • Excellent rewards on grocery delivery services, such as Instacart
HelloFresh Blue Cash Preferred® Card from American Express
  • 6% cash back at U.S. supermarkets (up to $6,000 in purchases per year, then 1%)
  • 6% cash back on select U.S. streaming subscriptions
  • 3% cash back at U.S. gas stations and on transit purchases
  • 1% cash back on general purchases
  • Terms apply
  • Generous rate on U.S. supermarket purchases (HelloFresh meal kits are sold in supermarkets such as H-E-B and Giant Food) and eligible grocery delivery services, such as Instacart
  • Unlimited 3% cash back on delivery purchases from ride-share services, like Uber and Lyft
Home Chef Blue Cash Everyday® Card from American Express
  • 3% cash back at U.S. supermarkets (up to $6,000 per year in purchases, then 1%)
  • 2% cash back at U.S. gas stations and select U.S. department stores
  • 1% cash back general purchases
  • Terms apply
  • Generous rate on U.S. supermarket purchases (Home Chef meal kits are sold in select Kroger locations)
Other delivery services Bank of America® Cash Rewards credit card
  • 3% cash back on a category of choice (gas, online shopping, dining, travel, drugstores or home improvements and furnishings)
  • 2% cash back at grocery stores and wholesale clubs
  • $2,500 combined limit on 2% and 3% categories each quarter
  • 1% cash back on other purchases
  • Generous rate on online shopping purchases (if you select it as your 3% category) and good rate at grocery stores
  • Can swap choice 3% category monthly to account for different delivery services. For instance, the dining category rewards Grubhub purchases and the travel category rewards ride share purchases from services like Uber

If you don’t have a delivery service you prefer – or if you like to switch back and forth based on restaurant availability – a card with rewards on online shopping is your best bet.

Bottom line

Ordering food can be expensive, but using the right rewards card can help you alleviate some of that cost by racking up points or cash back. With some cards, you might even get a few extras that cover your next couple of meals.

Source: creditcards.com

My take on Chase Freedom’s Q1 2021 categories

From Jan. 1 through March 31, 2021, the Chase Freedom and Chase Freedom Flex℠ cards will offer 5% cash back at wholesale clubs; select streaming services; and internet, cable and phone services.

The promotion includes up to $1,500 in combined spending as long as you activate by March 14, 2021. If you wait to activate (but still make the deadline), you’ll retroactively earn 5% back on bonus category purchases made after Jan. 1, 2021. Once you reach $1,500, you’ll earn 1% cash back.

At first glance, I’m not particularly excited about these categories, but your mileage may vary. It’s a big win for people who frequent wholesale clubs (I don’t). These stores haven’t been a Freedom 5% category since Q4 2018. But it makes sense, as many people are stocking up more frequently at warehouse clubs due to the COVID-19 pandemic.

Read more from our credit card experts.

Ask Ted a question.

Earning at wholesale clubs

Note that Costco, the largest wholesale club, only accepts Visa cards in-store. The original Chase Freedom card was a Visa card, but it stopped accepting applications in Sept. 2020. Cardholders who still have one can take advantage of this 5% promotion in Costco stores. The Freedom Flex essentially replaced the Freedom, with some new perks like enhanced travel, restaurant and drugstore rewards. But it’s a Mastercard, so it’s not accepted in Costco stores. It is accepted at Costco.com. Freedom Flex cardholders can, of course, earn 5% back in Q1 at other warehouse clubs such as Sam’s Club, BJ’s and others.

See related: Best credit cards for Costco purchases

The Q1 list in 2020 also rewarded Freedom cardholders for spending money on certain streaming services and internet, cable and phone services, but gas stations were on the list instead of wholesale clubs. Chase included gas stations during Q1 rotating categories each year going back to 2016. Amid the pandemic, it’s likely a favorable trade to wholesale clubs if you have a membership, and many Americans do. Costco has over 100 million members, Sam’s Club has more than 50 million and BJ’s has more than 5 million. There’s some overlap (and some of Costco’s members live in other countries), but it’s reasonable to estimate that about half of U.S. adults have a wholesale club membership.

Spending at gas stations is more universal, but the average gas expenditure is around $175 per month, according to the Bureau of Labor Statistics. I think there’s a good chance we’ll see gas on the calendar later this year, probably in the summer when a lot of Americans tend to hit the open road. And don’t fret if you do most of your food shopping at grocery stores rather than warehouse clubs. Groceries tend to be a Q2 Freedom bonus category.

How I’ll use my card in 2021

Since I don’t belong to any wholesale clubs and I spend very little on streaming, my Q1 Freedom Flex strategy will focus on internet, cable and phone services. By paying my April bills a little early, I’ll be able to squeeze four months’ worth of expenses into Q1. I’ll probably end up a little more than halfway to the $1,500 limit for 5% transactions.

Assuming the Freedom calendar follows its typical blueprint, Q1 should be my weakest of the year. As long as groceries are included in Q2, I won’t have any trouble maxing out that quarter. In 2020, Q3 included Amazon.com and Whole Foods Market. I spend a lot at Amazon.com, and if I’m right about gas, that would make the summer quarter even more lucrative. Q4 generally focuses on holiday shopping, and especially if it includes PayPal again, that will be easy to optimize.

Bottom line

Even though I won’t use it a ton in Q1, the Freedom Flex remains a strong player in my overall cash back strategy. Subsequent quarters should be even stronger. This no annual fee card provides a lot of other benefits, too, like purchase protection (which saved me $299 in 2020) and 3% cash back at restaurants and drugstores. I haven’t traveled in a while because of the pandemic. But when I do, I plan to take advantage of 5% cash back on travel booked through the Chase portal. The Freedom Flex is a very valuable all-around card, even if your spending doesn’t line up with every rotating category.

Have a question about credit cards? E-mail me at ted.rossman@creditcards.com and I’d be happy to help.

Source: creditcards.com