Chase Freedom Unlimited is a popular rewards credit card for everyday purchases and 0% financing. But even though the Chase Freedom Unlimited Card can be very lucrative and is an excellent choice for people with good credit, there are several mistakes that people often make with the card that end up being quite costly.
Applying if You Don’t Have Good or Excellent Credit
The Chase Freedom Unlimited Card requires good credit or better for approval. If your credit score doesn’t meet that requirement, it’s not worth taking the risk and applying for the card. Instead, it’s better to apply for a credit card with a lower credit score requirement or take a few months to improve your credit.
If you don’t know your credit score, you can check it for free on WalletHub. You can also check for pre-approval before applying for the Chase Freedom Unlimited Card. If you are pre-approved, then you are likely to get approved if you apply. Checking for pre-approval does not impact your credit score the way actually applying does.
Carrying a Balance After the Intro Period
The Chase Freedom Unlimited Card offers an introductory APR of 0% for 15 months on purchases and balance transfers. This can save you a lot of money if you need to finance any big-ticket items. However, once the introductory APR expires, any remaining balance will start to accrue interest at the card’s regular APR. That APR is 18.24% - 27.74% (V), depending on your creditworthiness.
Not only will carrying a balance subject you to interest charges, but it will also get rid of your card’s grace period. That means interest will start accruing right way on new purchases.
Chase Freedom Unlimited Review
Paying a Foreign Transaction Fee
Unfortunately, the Chase Freedom Unlimited Card is not a credit card that’s designed to be used abroad. It has a 3% of each transaction in U.S. dollars foreign transaction fee, which means you will pay an extra 3% of each transaction in U.S. dollars on any purchases made with a merchant in another country.
You should keep the Chase Freedom Unlimited Card for everyday use while having a no foreign transaction fee credit card for international trips.
Not Considering Freedom Flex Also
The Chase Freedom Unlimited Card is not the only “Freedom” card offered by Chase. There’s also Chase Freedom Flex. It offers a different rewards structure, including some 5% cash back categories that rotate each quarter. In most other respects, it’s almost identical to the Chase Freedom Unlimited Card.
If you’re torn between the two cards, you’re likely better off going with the Chase Freedom Unlimited Card because of its better base earning rate. You could always consider applying for the Chase Freedom Flex Card later. Waiting a year between applications is best.
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