Missing out on the Chase Freedom Unlimited 2x Cash Back Offer (and how you can get it).
Edit: The offer has now been changed to an additional 1.5% on all categories.
About a month ago, I decided to get another credit card. My Bank of America Customized Cash Rewards card had been serving me well for over 3 years, but I realized that I was not taking full advantage of other (and better) credit cards. After researching for several days and evaluating the viable options, I decided to go with the Chase Freedom Unlimited card as my second credit card. I was pre-approved with close to a $10,000 credit limit (which was double what I had with my BofA card) and a welcome bonus offer of $200 after spending $500 in the first 3 months, and 5% cash back on groceries and gas stations. Everything seemed well, right?
That was until the day before my card arrived in the mail, and I read about a new limited time welcome bonus offer: unlimited double cash back for 12 months. "WTF??" I thought to myself - the rewards potential is limitless (literally). At first, I was figuring out if I could get this offer instead of my initial one. Then, my rationality snapped me back to reality and I evaluated both offers. In this post, I will walk you through both offers, my personal thoughts on them, and of course, which one is better for you!
Sizing Up the Offers
| $200 + 5% on groceries & gas | Unlimited 2x Cash Back |
|---|---|
| $200 bonus after you spend $500 on purchases in the first 3 months from account opening | Double cash back on every purchase after the first 12 months. This is effectively: |
| Earn 5% cash back on combined gas station and grocery store purchases (not including Target or Walmart)* on up to $12,000 spent in the first year |
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Both offers also include a 0% introductory APR for the first 15 months from account opening.
My Thoughts
Starting off with the $200 + 5% on groceries & gas offer, let's get the first thing out of the way: spending $500 over the next 3 months (especially with current inflated prices) is very doable. Personally, I spent that in less than a month and this is coming from someone who just graduated college less than 6 months ago. So, that is essentially a free $200 for you just by using your new CFU card.
The main reason why I picked this card was for the juicy "other half" of the offer. I know I spend a lot on groceries as I prefer to cook my own meals instead of dining out excessively. So again, getting 5% back for just living my life is definitely a great perk. The one main thing to note is that Target, Walmart, and even Costco are not considered grocery stores. So, buying groceries from them will only get you 1.5% back. To capitalize on the 5%, you would just have to shop at a grocery store such as Trader Joe's or Whole Foods, just to name a couple.
Up until recently, gas prices have been through the roof and the unpredictability of prices really incentivizes you to minimize expenditure in this category. The good news is: Costco gas is eligible for the 5% back on gas and let's be real: who doesn't love that low price Costco gas?!
Let's move on to the Unlimited 2x Cash Back special offer, the star of this post. Looking at 6% back on dining and 10% back on travel is overpowered if you use it correctly. While the restriction is that you have to book travel through Chase's Ultimate Rewards portal, I think that they have great travel partners which you can find the full list here. So, finding an airlines that takes you where you want to go should not be an issue.
On top of that, earning 3% for "all other purchases" is downright insane, especially for a no annual fee credit card. My BofA card only gives 3% back on one selected category only.
Which One Wins?
As with every credit card, YMMV which stands for "your miles may vary". In other words, it depends on you and what you spend the most on. After doing some sample calculations, I realized that this acronym could not be more true between these two welcome offers.
If you are someone who is thinking of travelling a decent amount within the next year, or you find yourself dining out a lot and ordering takeout, the Unlimited 2x Cash Back offer is certainly the winner for you. Getting 10% on travel + 6% on dining can be pretty overpowered and you can see yourself getting a lot of cash back. On the flip side, if you are someone who just started a job, is not looking to spend too much, doesn't anticipate travelling or dining out a lot within the next year (i.e., like me), then the $200 + 5% on groceries & gas would be better for you. Reiterating the acronym, your miles may vary!
Think that this is the right card for you? Check out the links below on whichever bonus offer is best for you:
