The Chase Sapphire Preferred® Card and Chase Freedom Unlimited® are two of the most popular credit cards from Chase. However. these cards offer different rewards and benefits, so it’s important to carefully choose the card that aligns with your spending habits and needs.
The Chase Freedom Unlimited sets itself apart with 1.5% back on non-bonus purchases, plus higher rewards in select categories including dining and travel. This flexible rewards card becomes even more valuable when paired with a premium Chase card, allowing you to transfer your rewards to travel partners.
The Sapphire Preferred is one of the most popular travel rewards cards because it offers nice welcome bonus and extra points on travel and dining, which can be transferred to airline and hotel partners or redeemed directly for travel at a rate of 1.25 cents per point through Chase Travel℠. The Sapphire Preferred also offers great travel and purchase protections for a card with a $95 annual fee.
This article will compare each card based on several factors to help you make an informed decision on which card is the best to add to your wallet.
Full Reviews: Chase Sapphire Preferred® Card and Chase Freedom Unlimited®.
Table of Contents
Overview: Sapphire Preferred vs Freedom Unlimited
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- 5x Points on Travel Booked Via Chase
- 3x Points on Dining and Eligible Delivery Services
- 2x Points on All Other Travel Purchases
- 10% Anniversary Points Boost
- Trip Delay and Trip Cancellation Insurance
- Primary Rental Car Insurance
- $95 Annual Fee
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- 5% Cash Back on Travel Purchased Via Chase
- 3% Cash Back at Restaurants and Drug Stores
- 1.5% Cash Back on All Other Purchases
- 0% Intro APR for 15 Months (After that, a reg_apr,reg_apr_type APR.)
- Purchase Protection and Extended Warranty
- No Annual Fee
Welcome Bonus
Chase Sapphire Preferred:
Let’s begin with one of the most attractive aspects of the Chase Sapphire Preferred: the welcome bonus. Currently, new cardholders can earn the following welcome bonus:
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Chase Freedom Unlimited:
The Chase Freedom Unlimited currently offers the following welcome bonus:
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Earning Points
Chase Sapphire Preferred:
The Chase Sapphire Preferred earns Ultimate Rewards points and offers bonus points on spending in several categories:
- 5 points per dollar on travel booked through Chase Travel;
- 5 points per dollar on Lyft purchases (through March 2025);
- 5 points per dollar on Peloton equipment and accessory purchases of $250 or more (through March 2025, with a limit of 25,000 bonus points);
- 3 points per dollar on dining, including eligible delivery services, takeout, and dining out;
- 3 points per dollar on online grocery store purchases (excludes Target, Walmart, and wholesale clubs);
- 3 points per dollar on select streaming services;
- 2 points per dollar on all travel not booked through Chase Travel; and
- 1 point per dollar on all other eligible spending.
Chase Freedom Unlimited:
The Chase Freedom Unlimited earns the following rewards:
- 5% cash-back on travel purchased via the Chase Travel℠.
- 5% cash back on Lyft rides (through March 2025).
- 3% cash back on dining at restaurants, including takeout and eligible delivery services.
- 3% cash back at drugstores.
- 1.5% cash back on all other purchases.
Winner:
Overall, the Sapphire Preferred is more superior since it offers more earning categories, giving cardholders different ways to earn points.
But for those wanting simplicity, the Freedom Unlimited could also be a good choice with its 1.5% cash back on all purchases.
Card Benefits
Chase Sapphire Preferred:
The Chase Sapphire Preferred offers nice benefits, including:
10% Points Bonus: You will earn bonus points equivalent to 10% of your total spending in points earned with your Chase Sapphire Preferred Card during the past account anniversary year. For example, if you spent $10,000 during your cardmember year, you would receive an additional 1,000 points ($10,000 * 10% = 1,000 points).
$50 Hotel Credit: The Chase Sapphire Preferred card offers up to $50 in statement credits every account anniversary year if you book your hotel stays through Chase Travel.
DashPass Membership: This card offers a one-year DashPass membership for free, which includes DoorDash and Caviar, offering unlimited deliveries with free delivery fees and reduced service fees for eligible purchases. The offer must be activated by December 31, 2027. Once the free membership is over, you will be automatically enrolled in DashPass at the prevailing monthly rate.
Instacart Membership: Have your groceries delivered to your doorstep with a complimentary 6-month Instacart+ membership plus a $15 credit once every quarter. Enrollment is required by July 31, 2024.
No Foreign Transaction Fees: You’ll save money on every purchase while traveling internationally since this card doesn’t add the typical 3% surcharge that many other cards impose.
Travel Benefits
Primary Rental Car Insurance: When you rent a car and pay with this card, you’ll receive comprehensive coverage including damage and theft protection. Simply decline the rental company’s collision damage waiver and charge the entire rental to your card to activate coverage. This insurance covers damage, theft, and valid loss-of-use charges worldwide.
Trip Cancellation & Interruption Insurance: This protection reimburses you for non-refundable, prepaid travel expenses if you need to cancel before departure or cut your trip short due to covered situations like severe illness or weather events. Coverage activates when you pay for your trip with the card, but it’s important to note that reimbursement only applies for specific covered reasons rather than any cancellation.
Trip Delay Insurance: When your trip is significantly delayed due to covered reasons like equipment failures or severe weather, this protection reimburses you for reasonable expenses including lodging, meals, toiletries, and medication. The coverage activates when you pay for travel with your card and extends to family members on the same itinerary, though you’ll need to seek reimbursement from the travel carrier first.
Lost Luggage Reimbursement: Your checked luggage gets extra protection against loss, theft, or damage beyond the basic compensation offered by carriers when you pay for travel with this card.
Baggage Delay Insurance: Missing luggage doesn’t have to derail your trip – this coverage steps in to reimburse you for essential purchases when your checked bags are delayed by airlines, trains, or other carriers. You can grab the necessities you need, from a fresh outfit to personal care items, while waiting for your bags to arrive.
Purchase Benefits
120-Day Purchase Protection: Get 120 days of protection against damage, theft, and even loss of your purchases – one of the longest windows available. This premium coverage automatically applies when you pay with your card.
Extended Warranty Protection: Your purchases gain an extra year of warranty protection when bought with this card, extending manufacturer warranties of three years or less without the inflated prices of store warranty plans.
Chase Freedom Unlimited:
The Chase Freedom Unlimited offers the following benefits:
Intro APR: 0% intro APR for 15 months from account opening on purchases and balance transfers. After that, a reg_apr,reg_apr_type APR.
120-Day Purchase Protection: Get 120 days of protection against damage, theft, and even loss of your purchases – one of the longest windows available. This premium coverage automatically applies when you pay with your card.
Extended Warranty Protection: Your purchases gain an extra year of warranty protection when bought with this card, extending manufacturer warranties of three years or less without the inflated prices of store warranty plans.
Trip Cancellation & Interruption Insurance: This protection reimburses you for non-refundable, prepaid travel expenses if you need to cancel before departure or cut your trip short due to covered situations like severe illness or weather events. Coverage activates when you pay for your trip with the card, but it’s important to note that reimbursement only applies for specific covered reasons rather than any cancellation.
Secondary Rental Car Insurance: This card provides backup protection for rental car damage or theft when you charge the full rental to your card.
Winner:
The Chase Sapphire Preferred because it offers cardholders a suite of valuable benefits, including travel and purchase protections, anniversary bonuses, and complimentary subscriptions.
Annual Fee
Chase Sapphire Preferred:
The Chase Sapphire Preferred has a $95 annual fee, which may give some people pause. However, as a frequent traveler, I’ve found that the card’s benefits and rewards can easily offset this cost.
Think about it this way: if you take advantage of the welcome bonus and redeem those points for travel, you’ve already recouped the annual fee many times over. Plus, the ongoing rewards and perks like travel insurance, hotel credit, and no foreign transaction fees can save you money and provide peace of mind during your trips.
Chase Freedom Unlimited:
The Chase Freedom Unlimited has no annual fee, making it a great option for earning rewards without having to pay a large annual fee.
Authorized users can be added to the card for free and can help earn rewards through their spending.
Winner:
The Freedom Unlimited because it has no annual fee.
Redeeming Points
Chase Sapphire Preferred:
The Chase Sapphire Preferred offers exceptional flexibility when it comes to points redemption, allowing you to create the travel experiences you’ve been dreaming of.
One popular redemption option is booking travel through the Chase Travel portal. Here, your points are worth 1.25 cents apiece, meaning that a substantial amount of points can be redeemed for a significant value towards travel. I’ve used this option to book flights, hotels, and rental cars, and I appreciate the simplicity of the process. Plus, when you book through the portal, you can still earn airline miles and hotel points on your reservations.
If you’re looking to stretch your points even further, transfer to Chase’s airline and hotel partners. Some notable transfer partners include United Airlines, Southwest Airlines, British Airways, Air France/KLM, Hyatt, and Marriott. By strategically transferring points, you can unlock incredible redemption opportunities like first-class flights or luxurious resort stays.
In my experience, transferring points to Hyatt has yielded some of the most valuable redemptions. By leveraging my Ultimate Rewards points, I’ve booked top-tier properties like the Park Hyatt Paris-Vendôme and the Andaz Maui at Wailea Resort for a fraction of the cash price.
Of course, if you’re not in the mood for travel, you can always redeem your points for statement credits or gift cards at a rate of 1 cent per point. While this may not provide the most bang for your buck, it’s a decent option to have for those times when you need a little extra cash in your pocket.
Ultimate Rewards Transfer Partners [1 to 1]
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Aer Lingus
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Air Canada Aeroplan
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Air France/KLM
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British Airways
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Emirates
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Hyatt Hotels
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Iberia
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IHG Hotels
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JetBlue
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Marriott
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Singapore
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Southwest
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United
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Virgin Atlantic
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Chase Freedom Unlimited:
To redeem the points or rewards on this Chase card, log in to your Ultimate Rewards® account, navigate to the “Earn/Use” tab on your home page, and choose the type of redemption you want. The most popular options include:
Cash Back: Redeem your points in the form of a statement credit towards your balance or receive a direct deposit into a bank account.
Gift Cards: Convert your rewards into a gift card from your preferred retailer, with gift card options starting at 500 points for $5, so that’s worth 1 cent per point.
Pay With Points: Use your points to pay for Amazon or PayPal purchases. However, we don’t really recommend this option since redemption values are typically less than 0.8 cents apiece. Amazon Gift cards would be a better option.
Travel: If you book a trip through Chase’s travel portal, you redeem your rewards at one cent per point.
But you can easily increase the value by 25-50% of this card’s rewards by holding a premium Chase Ultimate Rewards card, which allows you to transfer to Chase’s airline and hotel partners or cash out points towards travel with higher bonuses:
- Chase Sapphire Preferred® Card = 25% Bonus
- Chase Sapphire Reserve® = 50% Bonus
- Ink Business Preferred® Credit Card = 25% Bonus
Winner:
Chase Sapphire Preferred because points earned on the Sapphire Preferred have higher redemption values and are more flexible since they can be transferred to several airline and hotel partners.
The Verdict
The Chase Sapphire Preferred® credit card is undoubtedly the superior option when compared to the Chase Freedom Unlimited® card.
The Sapphire Preferred not only offers a higher welcome bonus and earning rates, but it also provides cardholders with more benefits and better redemption options and values. Although the Sapphire Preferred has an annual fee of $95, the benefits and rewards it offers easily offset this cost.
The only reason why you’ll want to choose the Freedom Unlimited is if you want a simple rewards program and don’t want to pay annual fees.
However, if you’re willing to pay for an annual fee and want a more versatile rewards program, the Sapphire Preferred is your best pick. Overall, the Sapphire Preferred stands out as the better card in several different aspects, making it a great option for those looking for an affordable credit card with valuable rewards and benefits.
- bonus_miles_full
- 5x Points on Travel Booked Via Chase
- 3x Points on Dining and Eligible Delivery Services
- 2x Points on All Other Travel Purchases
- 10% Anniversary Points Boost
- Trip Delay and Trip Cancellation Insurance
- Primary Rental Car Insurance
- $95 Annual Fee
