Chase Freedom Unlimited: Ways To Use The $200 Cash Sign-up Bonus

One of the best perks of opening up a Chase Freedom Unlimited® card is its latest welcome offer. New cardholders can earn a $200 bonus after spending $500 on purchases in the first three months of account opening. Compared to the card’s previous offer of an additional 1.5 percent cash back on all purchases (up to $20,000 spent in the first year), this falls short, as that offer allowed you to earn up to an extra $100 boost for a total value of $300. But fortunately, there are still ways to benefit from the current offer. 

In this guide, we cover the requirements for qualifying for the bonus, the best ways to use the bonus and other details about the Chase Freedom Unlimited card.

Details of the Chase Freedom Unlimited

How to qualify for the Chase Freedom Unlimited’s sign-up bonus

To qualify for the Chase Freedom Unlimited’s sign-up bonus, you’ll need to meet the spending requirement within a set timeframe after account opening. But there are a few key requirements you need to keep in mind:

• New cardholder status: You must be a new Chase Freedom Unlimited cardholder. If you already have this card or have received a bonus for it in the past 24 months, you won’t be eligible.
• Minimum spending threshold: Make sure you spend at least $500 on eligible purchases within the first three months. Everyday expenses like groceries, gas and utility bills can help you meet this requirement easily.
• Timely spending: The three-month window starts on your account opening date, not the day you receive the card, so be sure to keep track of your timeline.
• Good to excellent credit: Although this isn’t a specific requirement for the bonus, approval for the Chase Freedom Unlimited generally requires a good credit score (typically 670 or higher), which is necessary to qualify for the card and the bonus.

How much is the Chase Freedom Unlimited’s sign-up bonus worth?

Each Chase Ultimate Rewards point is worth 1.0 cents if redeemed for cash, according to points and miles valuations by Bankrate. Using only the Chase Freedom Unlimited, points are also worth 1.0 cents when redeemed for travel, gift cards and Apple purchases. Points are worth 0.8 cents when redeemed for Amazon purchases and 1.25 cents each when redeemed for qualifying charitable giving through the Pay Yourself Back program.

However, your rewards can be even more valuable if you have a premium Chase Ultimate Rewards card, like the Chase Sapphire Reserve® or Chase Sapphire Preferred® Card. By transferring rewards earned with the Chase Freedom Unlimited to one of these cards, you can increase their value.

Holding those premium cards, or any Chase card that earns Unlimited Rewards points, also opens up the possibility of transferring your points to one of Chase’s airline or hotel loyalty partners, where you can see your points go even further.

Best ways to use the Chase Freedom Unlimited’s sign-up bonus

For many cardholders, especially those who don’t travel frequently or don’t want to spend time maxing out their rewards-earning potential, a cash direct deposit or statement credit may be the path of least resistance and the greatest value to their budget — and there’s nothing wrong with that if it best fits your needs.

That said, there are a few other redemption options you should consider to maximize your card’s sign-up bonus value. For instance, if you own an additional Chase credit card, such as the Sapphire Reserve or Preferred, you can transfer your welcome bonus in the form of Chase Ultimate Rewards points to one of those cards, where they can then be redeemed for travel purchases, possibly at a higher rate.

Chase also features a shopping portal with offers from retail partners in the form of discounted gift cards, product offerings and more. Before you redeem your rewards, it’s a good idea to browse the offerings in the portal to make sure you’re not missing out on any good deals from your favorite retailers.

Redemption options to avoid

With most redemption options worth 1 cent apiece, including cash back, statement credits and gift cards, there are many good ways to take advantage of your rewards. However, an area you might want to steer clear of is redeeming your rewards for Amazon purchases. Since points are only valued at 0.8 cents each when redeemed through Amazon, there are more valuable ways to put your hard-earned rewards to work.

You should also think carefully before redeeming points to purchase gift cards or items through the Chase Travel portal. While these redemption options can be as valuable as cash (and sometimes even more so), they can also encourage you to make purchases you might not have under other circumstances. If you’re on a budget and trying to cut down spending wherever possible, you can’t go wrong with redeeming your rewards for cash or statement credit.

The bottom line

Along with lucrative rewards and no annual fee, the Chase Freedom Unlimited’s welcome bonus is fairly attainable. How you make the most of the welcome bonus is ultimately up to you. A cash deposit, statement credit, travel purchases, gift cards or even charitable giving are all great options. If you’re pairing the Chase Freedom Unlimited with other Chase credit cards, like the Sapphire Reserve or Preferred, you can transfer your welcome bonus rewards to these cards for even more valuable redemption options.