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Christine ran her own business developing and managing insurance and financial services. This stoked a passion for points and miles and she now has over 2 dozen credit cards and creates in-depth, deta...
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Having a card in your wallet that earns unlimited cash-back on every purchase can take the thought out of which card to use for your next daily purchase. If that card has no annual fee, it can be an even better scenario.
Today we’re focusing on 2 possible options for an everyday credit card, both of which offer flat-rate elevated earnings on every purchase you make.
These options include the popular Chase Freedom Unlimited® and the Wells Fargo Active Cash® Card. You’ll find that the cards differ beyond how rewards are earned, including available bonus spending categories, options you’ll have at redemption time, and the types of additional benefits provided.
In today’s article, we’ll help you quickly sort through the differences until one card makes more sense for your situation than the other.
Stay with us as we compare these 2 everyday no-annual-fee cards.
Freedom Unlimited Card vs. Wells Fargo Active Cash Card — Overview
We’ll expand on all the details of the Freedom Unlimited card and Wells Fargo Active Cash card next.
First, here’s a helpful overview of how the cards compare in all the key categories that add cardholder value.
INTRO OFFER: Earn an additional 1.5% cash back on everything you buy (on up to $20,000 spent in the first year) - worth up to $300 cash back!
Earn a $200 cash rewards bonus after spending $500 in purchases in the first 3 months
Earning Potential
5% cash-back on travel via the Chase Ultimate Rewards travel portal
5% cash-back on Lyft rides through March 2025
3% cash-back on dining and drugstore purchases
1.5% cash-back on all other purchases
2% cash-back on all purchases
Redemption Options
Redeem for travel via the Ultimate Rewards travel portal
Transfer points to premium Chase cards* for additional redemption options
Cash-back, statement credits
Gift cards, merchandise, shopping at select retailers
Chase Dining and Experiences
Cash, a statement credit
Credit to a Wells Fargo credit card, checking account, mortgage
Access via Wells Fargo ATM
Gift cards
Checkout with PayPal
Travel Protections and Benefits
Secondary auto rental collision damage waiver
Roadside dispatch
Travel and emergency assistance services
Trip cancellation/trip interruption insurance
Secondary auto rental collision damage waiver
Roadside dispatch
Travel and emergency assistance services
Visa Concierge
Visa Signature Luxury Hotel Collection benefits
Shopping Protections and Benefits
Purchase protection
Extended warranty
Chase Offers
Shop through Chase
DoorDash, Instacart+, and Gopuff benefits
Cell phone protection
Annual Fees and Authorized Users
$0 annual fee
No fee to add authorized users
$0 annual fee
No fee to add authorized users
Additional Benefits
0% Intro APR for 15 months from account opening on purchases and balance transfers, then a variable APR of 20.49% - 29.24%.
0% intro APR for 15 months from account opening on purchases and qualifying balance transfers, then a 20.24%, 25.24%, or 29.99% variable APR
* Premium Chase cards include those with an annual fee, such as the Chase Sapphire Preferred® Card, Chase Sapphire Reserve®, and Ink Business Preferred® Credit Card
The Value of a Welcome Bonus Offer
When you’re approved for either the Freedom Unlimited card or the Wells Fargo Active Cash card, you’ll have the opportunity to earn a welcome offer of additional cash-back during an initial specified period.
Welcome bonus offers, vary but you can expect a common welcome offer on either card to be worth $200 to $300. Always check for the most current offer before applying for either card:
The rating for this card has been determined by our own industry experts who know the in's and out's of credit card products. Bonuses, rewards as well as rates and fees are all taken into account. Compensation from the issuer does not affect our rating. We only recommend products we either use ourselves or endorse.
This all-purpose cash-back card offers great bonus categories, including bonus points for every purchase you make!
This all-purpose cash-back card offers great bonus categories, including bonus points for every purchase you make!
Earn an additional 1.5% cash back on everything you buy (on up to $20,000 spent in the first year) - worth up to $300 cash back.
Additional 1.5% cash-back
$0
Upgraded Points credit ranges are a variation of FICO® Score 8, one of many types of credit scores lenders may use when considering your credit card application.
Good to Excellent (670-850)
The Chase Freedom Unlimited® is easily one of the best cash-back credit cards on the market. There aren’t many no-annual-fee credit cards that offer multiple great bonus categories like 5% back on travel purchased through Chase, 3% back on dining and drugstore purchases, and 1.5% back on all other purchases.
When paired with other Chase cards in the Ultimate Rewards family, you can transfer that cash back into points if you wish – making it one of the most lucrative cards in your wallet.
Don’t forget too, there’s 0% Intro APR for 15 months from account opening on purchases and balance transfers, then a variable APR of 20.49% - 29.24%.
Pros
0% Intro APR for 15 months from account opening on purchases and balance transfers, then a variable APR of 20.49% - 29.24%.
5% back on travel purchased through Chase Ultimate Rewards
3% back on dining and drugstore purchases
1.5% back on all other purchases
No annual fee
Earn big on travel purchased through Chase Ultimate Rewards
Everyday bonus on dining and drugstores
Straightforward cash-back on all other purchases
Ability to pool points
Cons
3% foreign transaction fee
INTRO OFFER: Earn an additional 1.5% cash back on everything you buy (on up to $20,000 spent in the first year) - worth up to $300 cash back!
Enjoy 6.5% cash back on travel purchased through Chase Ultimate Rewards®, our premier rewards program that lets you redeem rewards for cash back, travel, gift cards and more; 4.5% cash back on drugstore purchases and dining at restaurants, including takeout and eligible delivery service, and 3% on all other purchases (on up to $20,000 spent in the first year).
After your first year or $20,000 spent, enjoy 5% cash back on Chase travel purchased through Ultimate Rewards®, 3% cash back on drugstore purchases and dining at restaurants, including takeout and eligible delivery service, and unlimited 1.5% cash back on all other purchases.
No minimum to redeem for cash back. You can choose to receive a statement credit or direct deposit into most U.S. checking and savings accounts. Cash Back rewards do not expire as long as your account is open!
Enjoy 0% Intro APR for 15 months from account opening on purchases and balance transfers, then a variable APR of 20.49% - 29.24%.
No annual fee - You won't have to pay an annual fee for all the great features that come with your Freedom Unlimited® card
Keep tabs on your credit health, Chase Credit Journey helps you monitor your credit with free access to your latest score, real-time alerts, and more.
The rating for this card has been determined by our own industry experts who know the in's and out's of credit card products. Bonuses, rewards as well as rates and fees are all taken into account. Compensation from the issuer does not affect our rating. We only recommend products we either use ourselves or endorse.
The Wells Fargo Active Cash card earns an uncapped 2% cash-back on all purchases with no annual fee.
The Wells Fargo Active Cash card earns an uncapped 2% cash-back on all purchases with no annual fee.
Earn a $200 cash rewards bonus after spending $500 in purchases in the first 3 months
$200
$0
0% intro APR for 15 months on purchases and balance transfers. After that, variable APR of 20.24%, 25.24%, or 29.99% will apply.
Upgraded Points credit ranges are a variation of FICO® Score 8, one of many types of credit scores lenders may use when considering your credit card application.
Good to Excellent (670-850)
Pros
Unlimited 2% cash-back on all purchases
No annual fee
0% intro APR for 15 months from account opening on purchases and qualifying balance transfers, then a 20.24%, 25.24%, or 29.99% variable APR
Cell phone protection
Cons
No bonus categories for those who want to optimize certain purchases
Does not earn flexible rewards
Earn a $200 cash rewards bonus after spending $500 in purchases in the first 3 months
Earn unlimited 2% cash rewards on purchases
0% intro APR for 15 months from account opening on purchases and qualifying balance transfers, then a 20.24%, 25.24%, or 29.99% variable APR; 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
$0 annual fee
No categories to track or remember and cash rewards don’t expire as long as your account remains open
Enjoy a premium collection of benefits at a selection of the world’s most intriguing and prestigious hotel properties with Visa Signature Concierge
Get up to $600 of cell phone protection against damage or theft when you pay your monthly cell phone bill with your eligible Wells Fargo card (subject to a $25 deductible).
Select “Apply Now” to learn more about the product features, terms and conditions
Financial Snapshot
APR: 0% intro APR for 15 months on purchases and balance transfers. After that, variable APR of 20.24%, 25.24%, or 29.99% will apply.
Foreign Transaction Fees: 3% of each transaction converted to U.S. dollars.
Bottom Line: Both the Freedom Unlimited card and Wells Fargo Active Cash card come with a welcome offer that can be earned through spending on the card, starting immediately after card approval.
Earning Potential
Earning rewards on everyday spending can add up quickly. Image Credit: Rawpixel.com via Shutterstock
Both the Freedom Unlimited card and Wells Fargo Active Cash card earn unlimited cash-back. While the Wells Fargo Active Cash card earns cash-back directly, the Freedom Unlimited card earns rewards first as points that can subsequently be redeemed for cash-back. This is a subtle, but important, difference that can affect the value you receive at redemption time.
We’ll talk about redemption options next, but here’s how each of our featured cards earns rewards on every purchase:
Earning Category
Freedom Unlimited Card
Wells Fargo Active Cash Card
Travel
5% cash-back on travel purchases via the Chase Ultimate Rewards travel portal
5% cash-back on Lyft rides through March 2025
2% cash-back on all other travel
2% cash-back on all travel purchases
Dining, Including Carry-out/Delivery and Drugstores
3% cash-back
2% cash-back
All Other Purchases
1.5% cash-back
2% cash-back
The mix of your spending will ultimately determine the amount of cash-back you’ll earn. For example, if your overall spending consists mostly of travel purchased via the Chase travel portal, on dining, and at drugstores, you could earn more with the Freedom Unlimited card.
Another key consideration is that if the majority of your spending is in non-bonus categories — think warehouse stores, gas stations, tuition, home repairs, etc. — you could earn more with the Wells Fargo Active Cash card with its 2% flat-rate cash-back earnings.
Bottom Line: The Freedom Unlimited card best rewards travel purchased through the Chase Ultimate Rewards travel portal, for dining, and at drugstores. The card earns a flat 1.5% cash-back rate on all other purchases while the Wells Fargo Active Cash card earns 2% cash-back on every purchase, regardless of category. The best card for earnings will depend on your actual spending mix.
Redemption Options
Whether cash-back or travel, your choices at redemption time can help fund a family vacation. Image Credit: irinamurza via Unsplash
Earning rewards is an important element of a card’s value equation. The value you receive at redemption time will ultimately determine the overall value you’ll receive.
The Freedom Unlimited card earns flexible points that can be redeemed for cash-back but can also be redeemed for travel. And, for greater potential value, the points can be transferred to premium Chase credit cards.
Conversely, the Wells Fargo Active Cash card earns cash-back directly that is worth face value — 1 cent in cash-back is worth 1 cent — with no real option for elevated redemption value.
Here are your options at redemption time with both cards.
Redemption Option
Freedom Unlimited Card
Wells Fargo Active Cash Card
Travel
Redeem cash-back as a statement credit for travel purchased with the card
Redeem cash-back for travel via the Chase Ultimate Rewards travel portal
Transfer cash-back to premium Chase cards to redeem for travel via the Chase Ultimate Rewards travel portal for up to 50% more in value
Redeem cash-back as a statement credit for travel purchased with the card
Additional Redemption Options
Cash, a statement credit, transfer to bank account, check, gift cards, shopping with select online retailers, charitable donations
Statement credit; cash via Wells Fargo ATM; credit to Wells Fargo checking account, credit card, or mortgage; gift cards; checkout with PayPal
The Freedom Unlimited card offers the additional redemption options of using rewards to purchase travel via the Chase Ultimate Rewards travel portal. Additionally, you can transfer those points to premium Chase credit cards such as the Chase Sapphire Preferred® Card or the Chase Sapphire Reserve®. Once the points are transferred, they can be redeemed for up to 50% more value for travel via the Ultimate Rewards travel portal or transferred to airline and hotel partners for greater potential value.
We estimate the value of Ultimate Rewards points at approximately 2 cents each while the cash-back earned on the Wells Fargo Active Cash card has a flat rate face value of just 1 cent with no potential upside.
If redeeming rewards for travel is important to you, the Freedom Unlimited card could have the edge at redemption time. Additionally, with a Chase card that earns Ultimate Rewards points, you’ll be able to maximize redemption values even more.
Bottom Line: The Freedom Unlimited card has the edge at redemption time over the Wells Fargo Active Cash card with the ability to purchase travel via the Ultimate Rewards travel portal, transfer to premium Chase cards for up to 50% more in value when redeemed for travel, and the additional option of then transferring to airline and hotel partners for even greater potential value.
Travel Protections and Benefits
Enjoy peace of mind during a road trip with roadside dispatch. Image Credit: Free-Photos via Pixabay
Both the Freedom Unlimited card and Wells Fargo Active Cash Card can be issued as Visa Signature cards, resulting in similar travel insurance protections and benefits. Since the card issuer ultimately determines which benefits are offered on any specific card, there are differences.
Here are the protections and benefits you’ll find on both cards.
Auto Rental Collision Damage Waiver — Reserve and pay for your car rental with your card, decline the rental agency’s CDW/LDW coverage, and receive secondary coverage for damage and theft in the U.S. and primary coverage when renting internationally. Secondary coverage means that you must first file a claim with any other insurance that applies before card coverage kicks in. Terms and limitations apply.
Roadside Dispatch — Make just 1 toll-free call if you’re stranded roadside and receive services such as limited towing, standard winching, tire changing of an inflated spare, emergency fuel, jumpstart, or lockout services. Pay just 1 pre-negotiated fee for a service call. Any services above those included will be charged to the card.
Travel and Emergency Assistance Services — Receive assistance 24/7 for arranging emergency transportation, legal/medical referrals, ticket replacement, translation services, and more. Cardholders are responsible for actual services received.
And here are a few more perks if your card’s network falls under Visa Signature:
Visa Signature Concierge — Access your concierge 24/7 for help with restaurant reservations, event tickets, shopping assistance, and more. Cardholders are responsible for actual goods, services, and bookings received.
Visa Signature Luxury Hotel Collection Benefits — Book your stay via the Luxury Hotel Collection website with your card and receive benefits such as VIP treatment, an upgraded room on arrival (when available), complimentary daily breakfast for 2, late checkout when available, complimentary in-room Wi-Fi, best rate guarantee, and a $25 food/beverage credit.
The Freedom Unlimited card comes with the following additional travel insurance protection:
Freedom Unlimited Card
Trip Cancellation and Trip Interruption Insurance — You could receive up to $1,500 per covered person and up to $6,000 per trip if your trip has to be canceled or is disrupted for a covered reason.
Bottom Line: Since both the Freedom Unlimited card and Wells Fargo Active Cash card can be issued as Visa Signature cards, the cards come with similar travel insurance protections and benefits. You’ll find common protections and benefits such as car rental insurance, and roadside dispatch. In addition, the Freedom Unlimited card comes with trip cancellation and trip interruption insurance.
Shopping Protections and Benefits
Shopping protections can provide added coverage for eligible items purchased with your card. Benefits can save you money or provide added convenience.
Each of our featured cards comes with these shopping protections and benefits specific to each card.
Freedom Unlimited Card
Purchase Protection — Eligible items purchased with your card can receive coverage for damage or theft, up to 120 days from the date of purchase, up to $500 per claim, and up to $50,000 per account.
Extended Warranty — Purchase an eligible item with your card and receive 1 additional warranty year for items with manufacturer’s warranties of 3 years or less.
Chase Offers — Login to your online Freedom Unlimited card account and select from retail and service provider offers that earn statement credits for purchases.
Shop through Chase — Earn more rewards via the Chase shopping portal. Access the portal via your Chase online account and select from dozens of offers.
DoorDash DashPass — Enroll by December 31, 2024, and receive a 3-month complimentary membership plus 9 months at a 50% discount. Benefits include free delivery, lower service fees, and discount offers.
Instacart+— Instacart+ delivery can add convenience to your life. You’ll want to activate this offer before July 31, 2024, and receive a 3-month membership plus $10 in credit each quarter.
Gopuff Benefits— Receive a $10 monthly Gopuff credit through December 31, 2023.
Wells Fargo Active Cash Card
Cell Phone Protection — Pay your monthly cell phone bill with your card and receive up to $600 if your phone is damaged or stolen. There is a maximum of 2 paid claims each 12-month period, and there is a $25 deductible for each claim.
Bottom Line: The card with the better shopping protections and benefits for you will depend on if you value cell phone protection (Wells Fargo Active Cash card) or the shopping protections/benefits on the Freedom Unlimited card. The card comes with shopping protections and benefits such as purchase protection, extended warranty, and Chase Offers, plus DoorDash and Instacart+ perks.
Annual Fees and Authorized Users
The Freedom Unlimited card has a $0 annual fee, and so does the Wells Fargo Active Cash card with a $0 annual fee.
No-annual-fee cards allow you to keep them indefinitely, which may positively affect your credit score by increasing the average age of your credit.
There is also no fee for adding authorized users to either card.
Everything Else You Need To Know
Introductory 0% APR on Purchases and Balance Transfers
You’ll enjoy an interest-free repayment period on new purchases and when you transfer your high-interest credit card balances to either card, up to 15 months from card approval. Here are the details:
Freedom Unlimited card: 0% Intro APR for 15 months from account opening on purchases and balance transfers, then a variable APR of 20.49% - 29.24%.
Wells Fargo Active Cash card: 0% intro APR for 15 months from account opening on purchases and qualifying balance transfers, then a 20.24%, 25.24%, or 29.99% variable APR
Balance transfers may be made within the first 60 days after card approval on the Freedom Unlimited card and 120 days on the Wells Fargo Active Cash card:
Freedom Unlimited card: Each transfer will incur a 3% or $5 transfer fee, whichever is greater, and 5% or $5, whichever is greater, after the first 60 days.
Wells Fargo Active Cash card: Each transfer will incur a 3% or $5 transfer fee, whichever is greater, and up to 5% or $5, whichever is greater, after the first 120 days.
On the Wells Fargo Active Cash card, a balance transfer request must be made within 120 days to qualify for the promotional APR.
Qualification
It’s recommended to carry a good to excellent credit score to qualify for either the Freedom Unlimited card or the Wells Fargo Active Cash card. A good credit score is generally considered 670 to 749, a very good score of 750+, and an excellent score is generally considered 800 and above.
Foreign transaction fees can cost you money during your travels. Both the Freedom Unlimited card and Wells Fargo Active Cash card charge foreign transaction fees of 3% of the total purchase. You’ll want to use these cards primarily for domestic purchases.
Final Thoughts
The Freedom Unlimited card surfaces as the better card for most consumers over the Wells Fargo Active Cash card. This is based mostly on its flexible rewards earning and travel redemption options.
The Wells Fargo Active Cash card, with cell phone protection, may have an appeal if you do not have another card that offers this coverage. And, if your spending is focused on categories that are non-bonus earning and travel redemptions are not important to you, a case could be made for the card. The card does earn a respectable 2% cash-back on every purchase.
If you have, or plan to have, a Chase premium card such as the Chase Sapphire Preferred card or the Chase Sapphire Reserve card, the Freedom Unlimited card should be a strong consideration.
The information regarding the Wells Fargo Active Cash® Card was independently collected by Upgraded Points and not provided nor reviewed by the issuer. The information regarding the Chase Freedom Flex℠ was independently collected by Upgraded Points and not provided nor reviewed by the issuer.
Featured Image Credit: kenary820 via Shutterstock
Frequently Asked Questions
The Freedom Unlimited card is the better card because of the additional value provided at redemption time. Points can be redeemed for travel at 1 cent each or for greater potential value when combined with Chase premium credit cards.
While both cards earn unlimited cash-back on every purchase, the Freedom Unlimited card has bonus-earning categories that earn up to 5% cash-back. The Wells Fargo Active Cash card earns 2% cash-back on every purchase which can be good for earning in non-bonus categories.
Yes, the Wells Fargo Active Cash card charges foreign transaction fees of 3% of the total transaction.
No. To transfer points earned on the Freedom Unlimited card to airline partners, you must first transfer those points to a premium Ultimate Rewards-earning card such as the Chase Sapphire Preferred card or the Chase Sapphire Reserve card.
Once transferred to premium Chase cards, you can then transfer points to airline partners and purchase award flights.
Yes, it can be. It’s recommended that you have a good to excellent credit score, generally considered 670 or above.
You cannot redeem cash-back to directly purchase travel but you can redeem cash-back earned on the Wells Fargo Active Cash card for a statement credit to offset a travel purchase.
You can also redeem cash-back as a credit to a qualifying Wells Fargo credit card or transfer the cash to your Wells Fargo checking account to offset a travel purchase.
Christine ran her own business developing and managing insurance and financial services. This stoked a passion for points and miles and she now has over 2 dozen credit cards and creates in-depth, detailed content for UP.
Disclaimer: Any comments listed below are not from the bank advertiser, nor have they been reviewed or approved by them. No responsibility will be taken by the bank advertiser for these comments.
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This bonus value is an estimated valuation calculated by UP after analyzing redemption options, transfer partners, award availability and how much UP would pay to buy these points.
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