If you want to earn cash back on everything you buy, these two popular credit cards offer very different rewards strategies. One rewards simplicity. The other rewards strategy. Here is how they compare.
Cash back credit cards are more important than ever. With inflation still impacting everyday expenses, smart spenders are turning to cards that return real value on purchases they were going to make anyway. The Wells Fargo Active Cash® Card and Chase Freedom Unlimited® are two of the most commonly compared options, and for good reason.
Both cards have no annual fee. Both offer generous welcome bonuses. But the way they earn rewards is where things get interesting.
The Active Cash card gives a flat 2 percent cash back on every purchase. The Freedom Unlimited card offers 1.5 percent base cash back, but boosts that to 5 percent on travel booked through Chase, and 3 percent at restaurants and drugstores.
If you want a card that works without effort, the Active Cash card delivers. If you want to squeeze extra value out of your everyday categories, the Freedom Unlimited card offers more upside. Here is how to choose the right card for your wallet.
How Wells Fargo Active Cash works and who it is best for
The Wells Fargo Active Cash card is ideal for people who want to earn solid rewards without tracking categories or rotating offers.
Every purchase earns 2 percent cash back, whether you are buying groceries, gas, travel, or anything else. There are no categories to activate and no need to remember which card to use where.
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Features of Wells Fargo Active Cash
Earn unlimited 2 percent cash rewards on all purchases
No annual fee
Introductory offer: Earn a $200 cash rewards bonus after spending $500 in purchases in the first 3 months.
0% intro APR for 12 months from account opening on purchases and qualifying balance transfers. 18.49%, 24.49%, or 28.49% variable APR thereafter; balance transfers made within 120 days qualify for the intro rate and fee of 3% then a BT fee of up to 5%, min: $5.
Who benefits most from this card
People who want a single go-to card for everything
Retirees and fixed-income users who prefer predictability
Casual spenders who do not want to track reward categories
Expert tip
Set up an automatic monthly transfer to move earned cash rewards into a high-yield savings account. This creates a passive saving habit that grows alongside your spending.
How Chase Freedom Unlimited rewards optimized spending
Chase Freedom Unlimited is a better fit for people who want to earn more cash back in the categories they spend most on.
This card gives 1.5 percent cash back on most purchases. But where it shines is in bonus categories: 5 percent back on travel booked through Chase, and 3 percent back at restaurants and drugstores.
If you dine out frequently or book travel with Chase, the rewards can add up quickly.
Features of Chase Freedom Unlimited
5 percent cash back on travel booked through Chase Travel
3 percent back at restaurants and drugstores
1.5 percent cash back on all other purchases
No annual fee
Introductory offer: Limited Time Offer: Earn a $300 Bonus after you spend $500 on purchases in your first 3 months from account opening
Enjoy 0% Intro APR for 15 months from account opening on purchases and balance transfers, then a variable APR of 18.49% - 27.99%.
Who benefits most from this card
People who spend regularly on dining and travel
Chase users who also have a Sapphire Preferred or Reserve card
Budgeters who track spending and categories to maximise rewards
Expert tip
Combine this card with another Chase card like Sapphire Preferred to pool points in Chase Ultimate Rewards and boost redemptions, especially for travel bookings.
Side-by-side comparison of Wells Fargo Active Cash and Chase Freedom Unlimited
Feature | Wells Fargo Active Cash | Chase Freedom Unlimited |
|---|---|---|
Base cash back | 2 percent on everything | 1.5 percent on everything |
Bonus categories | None | 5 percent Chase Travel, 3 percent dining and drugstores |
Annual fee | $0 | $0 |
Ease of use | Very simple | Requires tracking bonus categories |
Ideal for | One-card users, set-and-forget strategy | Savvy users who maximise rewards |
Welcome bonus | Yes | Yes |
Travel integration | Basic | Best when used with other Chase cards |
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Can you use both cards to earn even more rewards
Yes, using both cards together can give you a higher effective cash back rate across all spending categories.
Use Wells Fargo Active Cash for general purchases and recurring bills. Use Chase Freedom Unlimited for dining, drugstores, and any travel booked through Chase. Many cardholders on Reddit and financial forums recommend this approach to strike a balance between simplicity and optimization.
Expert tip
Connect both cards to a budgeting app that automatically tags transactions by category. This makes it easy to see where each card earns best.
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Final decision: how to choose the right card for your lifestyle
Choose Wells Fargo Active Cash if you want a single card that gives you reliable rewards on every purchase without thinking about it.
Choose Chase Freedom Unlimited if you want to earn higher rewards on specific spending categories and are comfortable with a bit of planning.
Both cards are solid options. Start with the one that matches how you currently spend, and you can always add the other later to increase your earning power.
Key takeaways for consumers comparing cash back cards
Flat 2 percent rewards are best for predictable spenders
Tiered rewards work better if you dine out, travel, or manage your spending
Both cards have no annual fee and strong welcome offers
Many users combine both cards to maximise rewards without overcomplicating
Brand insights from major card comparison platforms
Brand | What it does best according to expert reviews |
|---|---|
Wells Fargo Active Cash® | Best flat-rate card for hands-off cashback rewards |
Chase Freedom Unlimited® | Top pick for combining categories and Chase ecosystem |
Citi Double Cash® | Strong 2 percent earner with a unique split reward structure |
Discover it® Cash Back | Best for rotating categories and matching year-one cashback |
Blue Cash Everyday® from American Express® | Good for US supermarket rewards and moderate gas station use |
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FAQs
Is 2 percent cash back better than tiered rewards?
If your spending is spread evenly, a flat 2 percent rate may earn more overall. If you spend heavily in bonus categories, tiered rewards can deliver higher value.
Can I have both cards at the same time?
Yes, many users carry both. This lets you earn 2 percent on general purchases and higher rewards in dining and travel through Chase.
How do I redeem cash back from these cards?
Both cards allow cash redemption via statement credit or direct deposit. Chase also allows redemption through its Ultimate Rewards portal.
What is the catch with Chase bonus categories?
You must book travel through the Chase portal and use the card at qualifying restaurants or drugstores to earn the higher rates. Purchases outside those parameters will only earn 1.5 percent.
Can I combine Chase points with other cards?
Yes. If you also have a Chase Sapphire card, you can transfer points and unlock higher travel redemptions through Ultimate Rewards.
Disclosures:
This content is based on the independent analysis of the publisher and/or its authors and has not been provided by or endorsed by any card issuer.
The credit card offers and information presented on this page are current as of the published date. However, credit card terms, including APRs, fees, and promotional offers, are subject to change without notice. Some offers listed may no longer be available or may have expired. Please refer to the issuer's website for the most up-to-date terms and conditions.