Chase Sapphire Preferred® vs. Freedom Unlimited®: Which Card Should You Pick?

When it comes to rewards-earning potential, each is superior in its own right, and comparing rewards credit cards to find the right fit often depends on how your specific spending categories stack up.

Let's look at when it makes the most sense to pick the Chase Freedom Unlimited® versus the Chase Sapphire Preferred®, and when it's most beneficial to pick both.

If you're looking into adding high-value rewards cards, the Chase Freedom Unlimited® and Chase Sapphire Preferred® are two popular cards to jump into the Chase Ultimate Rewards ecosystem.

While both come with valuable perks and benefits, the core difference is that the Chase Sapphire Preferred® is a premium travel card, while the Chase Freedom Unlimited® is a solid credit card for points-earning opportunities on everyday spending.

Chase Sapphire Preferred vs. Freedom Unlimited: The Quick Comparison

While the Chase Sapphire Preferred does come with a $95, you get a 25% points boost on Chase Ultimate Rewards point redemptions through the Chase Travel℠ portal.

For new cardholders, you can take advantage of these Boost Point rates when they're made available. For existing Chase Sapphire Preferred cardholders, you have until October 26, 2027 to enjoy the 25% points boost.

Currently, Chase features a grand total of 13 featured airline and hotel partners at a 1:1 transfer partners, which gives you the "transfer partner advantage" of a higher value on your points than if you booked through the portal. You'll also want to keep an eye for the occasional transfer bonus, which can equate more "bang for your buck" on points redemptions.

Let's take a look at some of the travel protections that make the Chase Sapphire Preferred a particularly valuable travel rewards card:

• Auto rental coverage (Up to $60,000 for theft and collision damage)

• Trip cancellation and interruption insurance (Up to $10,000 per covered traveler and up to $20,000 per trip)

• Trip delay reimbursement (Up to $500 per covered traveler)

• Baggage delay insurance (Up to $100 a day for 5 days)
  
  

Other travel-related perks include travel accident insurance, roadside assistance and lost luggage reimbursement. Beyond these built-in protections, having a stash of Ultimate Rewards points can be a lifesaver if you need to use credit card points for last-minute travel emergencies, such as an unexpected flight home or a sudden change in plans.

What is the $50 Annual Hotel Credit and 10% Anniversary Points Boost?

The Chase Sapphire Preferred® also comes with a $50 annual hotel credit. If you book through the Chase Travel Portal, you can earn up to $50 in hotel statement credits. This usually shows up on your statement within one or two billing cycles, and it resets every year on your anniversary.

And on your anniversary, you'll also scoop up 10% in bonus points of the total purchases you made that prior year. So if you've made $10,000 in purchases, that's 1,000 in bonus points. Spend $15,000 on your card, and you'll rack up 1,5000 in bonus points.

The Chase Sapphire Preferred card is a must for travelers, says Matt Bundrick, a credit card expert and co-founder of BankBonus.com.

Plus, Chase Sapphire cardholders can also enjoy a complimentary DoorDash DashPass membership and monthly $10 credit, which is valued at $240 a year.

There's beauty in simplicity, and that rings true for the Chase Freedom Unlimited®. You earn 1.5% on all purchases. Plus, you can enjoy a few standout bonus spending categories: 5% in bonus points when booked through Chase Travel, 3% in dining and drugstores.

The 0% Intro APR Offer: A Tool for Short-Term Financing

Another feature of the Chase Freedom Unlimited® is that you can enjoy zero-APR on purchases and balance transfers for a limited time after opening your account. As long as you pay off the balance before the intro APR period ends, you can save a significant chunk of change on interest fees. However, it’s important to know how to use a 0% APR credit card without getting burned by high interest rates once the promotional window closes.

Why 1.5% "Everywhere Else" is the Secret Weapon

The Chase Freedom Unlimited® card is a great card for everyday purchases primarily because of its generous cashback earnings of 1.5% on all purchases without the fuss of categories, points out Bundrick, who uses the Chase Freedom Unlimited as one of his go-to cards for everyday spending.

By making the most of a flat 1.5% on everyday purchases and higher cashback on bonus spending categories, you can accelerate your earning rate.

The "Power Duo" Strategy: 1 + 1 = 3

One of the major perks of being part of the Chase card ecosystem is by combining points through Chase Ultimate Rewards. When you move points between cards, you can boost the value of those points.

For example, the 3% bonus category on dining on the Chase Freedom can turn into a 3.75% travel reward when moved to your Chase Sapphire Preferred. It might sound like magic, and in some ways, it is.

Here's how it works: Let's say you spend $100 on dining on your Chase Freedom, which earns you 3% cash back. That nets you $3 in rewards. Cash back on the Freedom Unlimited is earned as Ultimate Rewards points, which can be transferred.

Now, what happens if you transfer those points to the Chase Sapphire Preferred? When you combine points in the Chase Ultimate Rewards portal, and use those points toward Chase Travel, you'll get 1.25 cents per point, which nets you 375 cents or $3.75 of travel value.

Boosting the Freedom Unlimited's Value by 25%

As you can see, when you move earned points on your Chase Freedom Unlimited to a premium card such as the Chase Sapphire Preferred, you get a points boost of 25%. Your points are worth 25% more when you book car rentals, hotel, and airfare through the Chase Travel portal.

The "Chase Trifecta": Adding the Freedom Flex for 5% Categories

To take advantage of your Chase cards, you might want to consider the Chase Trifecta. This is a strategy where you combine certain cards in the Chase family to maximize your rewards-earning potential and the value you get from them.

For example, a popular combo is the Chase Sapphire Preferred®, which is for travel and transfers, the Freedom Unlimited® for 1.5% everyday cashback plus bonus spending categories, and the Freedom Flex® for 5% cash back on rotating bonus categories. With the Freedom Flex, you can also scoop up points by booking travel on Chase Travel℠ and on dining and drugstores (3%).

By having these three cards in tow, you can boost your earning potential on your cards, plus your redemption options. For example, if you move points to your Chase Sapphire, you can net 25% more when booking travel.

Chase's 5/24 rule is an unofficial guideline that if you've opened five or more personal credit cards in the past 24 months, chances are you won't get approved for most Chase rewards cards. This applies to cards from any card issuer, not just from Chase.

For instance, if you opened two Citi cards, one Discover card, and two Amex cards in the last 24 months, you won't be able to add any Chase cards to your stable of credit cards.

To avoid getting locked out of the Chase card ecosystem, consider timing your applications and applying for the Chase card or cards of your choice. That way, you won't hit up against the 5/24 rule.

Which Card Should You Get? (Decision Matrix)

The Chase card you should get depends on your lifestyle and spending habits. Let's take a look:

To decide which card is best for you, it really comes down to which benefits you will use and how much you travel, says Bundrick. The ultimate goal is to make the most of every dollar you spend on your credit cards, so you'll want to do some homework on which card might be the better choice – or both.

If you have low spend volume and fairly simple buying habits, the Chase Freedom Unlimited® card is likely your best bet, points out Bundrick.

With that said, If you're currently paying for DoorDash DashPass, having a Chase Sapphire Preferred® card will instantly pay for itself on those benefits alone. Those who travel, especially internationally, will ultimately find a lot more benefit in the Chase Sapphire Preferred® card.

Frequently Asked Questions

Can I have both the Sapphire Preferred and Freedom Unlimited?

Yes, and many experts recommend it. A popular approach is to use the Chase Freedom Unlimited® for daily spending and the Chase Sapphire Preferred® to spend on travel and dining and to manage redemptions. This strategy is even more effective for credit cards for couples, as partners can often transfer points to one another’s accounts to reach travel goals faster and build a shared credit profile.

Is the Sapphire Preferred's annual fee worth it?

The $50 annual hotel credit helps offset the annual fee. Plus, the travel insurance alone could pay for the fee in one trip. The DoorDash DashPass, which is valued at $240 if you take advantage of the $10 monthly credit on non-restaurant orders, can also offset the annual fee.

Does the Chase Freedom Unlimited have foreign transaction fees?

Yes, the Chase Freedom Unlimited® has a 3% foreign transaction fee. If you're traveling abroad, it's a good idea to reach for the Chase Sapphire Preferred, which comes with no foreign transaction fees.

What is the "Chase Trifecta"?

The Chase Trifecta which is a popular strategy to combine credit cards in the Chase family and maximize the number of points you earn and the value you get from them. It's the combination of the Sapphire Preferred® for travel and transfers, the Freedom Unlimited® for 1.5% cash back on everyday spending, and the Freedom Flex for 5% on rotating categories.