Money Analysed

Comparing Two Top Cash-Back Cards: Chase Freedom Unlimited vs Wells Fargo Active Cash

Chase Freedom Unlimited vs. Wells Fargo Active Cash: Which is Better for You?

In the world of cash rewards credit cards, Chase Freedom Unlimited and Wells Fargo Active Cash are two popular choices. Both cards offer generous rewards and a suite of benefits, all without an annual fee.

But which card is the better choice for you? In this article, we’ll compare the two cards side-by-side and highlight the strengths and weaknesses of each.

Comparison of Chase Freedom Unlimited and Wells Fargo Active Cash

First, let’s look at the similarities and differences between the two cards. Both cards offer cash rewards on every purchase, and both are backed by the Visa card network.

Both cards also offer intro APR offers, with Chase Freedom Unlimited offering 0% intro APR on purchases and balance transfers for 15 months and Wells Fargo Active Cash offering 0% intro APR on purchases and qualifying balance transfers for 15 months. However, there are several important differences between the two cards.

The earning rate on Chase Freedom Unlimited is 1.5% cash back on every purchase, while Wells Fargo Active Cash offers a flat 2% cash back on every purchase. Chase Freedom Unlimited also offers rotating bonus categories that earn 5% cash back on up to $1,500 in purchases per quarter, while Wells Fargo Active Cash does not have bonus categories.

When it comes to travel redemptions, Chase Freedom Unlimited offers the ability to transfer your rewards to Chase’s Ultimate Rewards program, which can then be used to book travel or redeemed for cash back or gift cards. Wells Fargo Active Cash offers the ability to redeem your rewards for travel through the Wells Fargo rewards portal, but you cannot transfer your rewards to other loyalty programs.

On the protection benefits front, Chase Freedom Unlimited offers purchase protection, which covers eligible purchases against damage or theft for up to 120 days from the date of purchase. It also offers extended warranty protection, which doubles the time period of the original manufacturer’s warranty, up to one additional year.

Wells Fargo Active Cash does not offer these protection benefits. Finally, when it comes to travel benefits, Chase Freedom Unlimited offers Visa Signature benefits such as rental car insurance, roadside dispatch, and travel accident insurance.

Wells Fargo Active Cash offers similar travel benefits, but not at the Visa Signature level.

Strengths of both cards

Both cards offer welcome bonuses, with Chase Freedom Unlimited currently offering $200 cash back after spending $500 on purchases in the first three months and Wells Fargo Active Cash offering $200 cash rewards after spending $1,000 on purchases in the first three months. Neither card has an annual fee, making them low-cost options for earning cash rewards on every purchase.

Both cards also offer redemption options for cash back, gift cards, or travel, giving you flexibility in how you use your rewards. The intro APR offers on both cards can also be a money-saving feature, allowing you to pay down high-interest debt or make a large purchase without paying interest for the first 15 months.

Both cards also have the backing of Visa’s worldwide network, giving you access to acceptance at millions of merchants around the globe. Which card to choose?

Which card to choose ultimately comes down to your preferences and spending habits. If you want a card with a higher earning rate on every purchase, Wells Fargo Active Cash may be the better choice.

However, if you want the ability to earn bonus rewards on rotating categories and transfer your rewards to other loyalty programs, Chase Freedom Unlimited may be the better choice. If you are looking for protection benefits like purchase protection and extended warranty protection, you’ll want to choose Chase Freedom Unlimited.

If you value travel benefits like rental car insurance and travel accident insurance, both cards offer similar benefits, but Chase Freedom Unlimited offers them at the Visa Signature level. Finally, if you need an intro APR offer, both cards offer 15 months of 0% intro APR, so you’ll need to decide if you want to focus on purchases or balance transfers.

In conclusion, both Chase Freedom Unlimited and Wells Fargo Active Cash are excellent cash rewards cards with lots to offer. By considering their similarities and differences, understanding their strengths, and weighing your preferences and spending habits, you’ll be able to choose the card that’s right for you.

Wells Fargo Active Cash: A Comprehensive Look

Wells Fargo Active Cash is a new addition to the world of cash rewards credit cards. Launched in July 2021, this card is quickly gaining popularity due to its attractive features and benefits.

In this article, we’ll take a closer look at the card’s features, compare it to the Chase Freedom Unlimited card, and highlight the benefits that make it worth considering.

Card Details

Wells Fargo Active Cash is a cash-back credit card that allows you to earn 2% cash back on all purchases. This is higher than the earning rate of many other cash-back cards, which typically offer 1.5% cash back on every purchase.

The card is backed by the Visa network, which means it’s accepted at millions of merchants around the world. The card also comes with no annual fee, making it a low-cost way to earn rewards.

New cardholders can earn a $200 cash rewards bonus after spending $1,000 in purchases within the first three months after account opening. The card also has an intro APR offer of 0% APR for the first 15 months on purchases and qualifying balance transfers.

Similarities with Chase Freedom Unlimited

Chase Freedom Unlimited and Wells Fargo Active Cash have several similarities. Both cards offer welcome bonuses, don’t carry an annual fee, provide redemption options, and have intro APR offers.

Both cards are also backed by Visa’s global network.

Differences with Chase Freedom Unlimited

While there are similarities, there are also differences between the two cards. The biggest difference between the cards is the earning rate.

Wells Fargo Active Cash offers a flat 2% cash back on all purchases, while Chase Freedom Unlimited offers a lower 1.5% cash back on every purchase, but with rotating bonus categories that earn 5% cash back on eligible purchases. When it comes to travel redemptions, Chase Freedom Unlimited allows you to transfer your rewards to the Ultimate Rewards program, whereas Wells Fargo Active Cash allows you to redeem your rewards for travel through the Wells Fargo rewards portal, but you cannot transfer your rewards to other loyalty programs.

Benefits of Wells Fargo Active Cash

Wells Fargo Active Cash offers a unique benefit that sets it apart from other cash-back cards: cell phone protection. If you pay your cell phone bill with your card, you’ll get up to $600 in protection against damage or theft.

This benefit covers up to two claims per year, with a $25 deductible per claim. The card also offers Visa Signature benefits such as rental car insurance, roadside dispatch, and travel accident insurance.

These benefits provide extra protection when traveling, although they are not as extensive as the benefits offered by Chase Freedom Unlimited.

FAQs

Q: Does Chase Freedom Unlimited have travel insurance? A: Yes, Chase Freedom Unlimited offers several travel insurance benefits such as trip cancellation/interruption insurance, auto rental collision damage waiver, travel and emergency assistance, purchase protection, and extended warranty protection.

Q: What credit score is needed for the Wells Fargo Active Cash Card? A: The Wells Fargo Active Cash Card requires a good to excellent credit score, usually a FICO score of 670 or higher.

Bottom Line

When it comes to choosing between Chase Freedom Unlimited and Wells Fargo Active Cash, it ultimately comes down to your preferences and spending habits. If you’re looking for a card with a higher earning rate on every purchase, Wells Fargo Active Cash may be the better choice.

However, if you want the ability to earn bonus rewards on rotating categories, transfer your rewards to other loyalty programs, and enjoy more extensive travel benefits, Chase Freedom Unlimited might be the better choice. Regardless of which card you choose, both are excellent options for earning cash rewards with no annual fee.

In summary, choosing between Wells Fargo Active Cash and Chase Freedom Unlimited comes down to your preferences and spending habits. Both cards offer welcome bonuses, no annual fee, and redemption options, but they differ in earning rates, bonus categories, travel redemptions, and protection and travel benefits.

Wells Fargo Active Cash offers a higher earning rate and cell phone protection, while Chase Freedom Unlimited allows bonus rewards on rotating categories and access to the Ultimate Rewards program. Both cards are backed by the Visa network and offer intro APR offers.

Ultimately, choose the card that best fits your lifestyle and spending habits.

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