Wells Fargo Active Cash Card vs Chase Freedom Unlimited: Which offers more value?

The Chase Freedom Unlimited has an unusual intro offer that allows new cardholders to earn an additional 1.5% back on the first $20,000 spent in the first year. That’s up to $300 in extra cash back.

The Wells Fargo Active Cash Card has a more traditional welcome offer. New cardholders can earn $200 in cash rewards after spending $500 in purchases within the first three months of card membership.

Winner: The Wells Fargo Active Cash Card. While you can theoretically earn $100 more with the Chase card, it’s much easier to qualify for the Active Cash Card’s bonus.

Both of these cards are cash-back credit cards and both offer higher-than-normal returns for everyday spending.

The Wells Fargo Active Cash Card earns a straightforward 2% cash rewards back on all purchases. The Chase Freedom Unlimited earns at least 1.5% back on all purchases, and earns bonus cash back as follows:

Thanks to how Chase has designed its rewards program, the Freedom Unlimited can give cardholders additional value that might not be obvious at first glance. It earns cash back in the form of Chase Ultimate Rewards points, and if you also use a Chase credit card that enables transfers (such as the Chase Sapphire Preferred® Card), you can pool your points and convert the points you earn with the Freedom Unlimited into airline miles and hotel points.

When you do this, you can dramatically increase the value of the Freedom Unlimited rewards. For example, 30,000 points could be redeemed for $300 cash back or you could transfer those points to Hyatt and book a hotel that costs more than $500 a night.

Winner: Tie. The value of the rewards you earn with these cards highly depends on how you use them. The Wells Fargo Active Cash is a simple card that offers an above-average return everywhere and is more valuable than the Freedom Unlimited for purchases that fall outside of bonus categories. But if you’re willing to take extra steps to get the most value from your credit card points (including opening a second card that has an annual fee), the ceiling is higher for the Freedom Unlimited.

The Wells Fargo Active Cash Card has a small handful of benefits outside of its welcome bonus, intro APR and flat-rate cash rewards. Cardholders receive cell phone protection when they pay for their monthly cell phone bill with the card. Cardholders will receive up to $600 cell phone protection (subject to a $25 deductible). It also comes with certain Visa card perks, such as Visa Concierge® Service and access to elite-like hotel benefits through the Visa Signature Luxury Hotel Collection.

The Chase Freedom Unlimited has a robust list of benefits, especially for a no-annual-fee card. Cardholders receive:

The Freedom Unlimited also has some limited-time partner benefits. Cardholders can enroll to receive three free months of DoorDash DashPass (activate by Dec. 31, 2024) and three free months of Instacart+ (enroll by July 31, 2024). Once you’re enrolled in Instacart+, you can also earn up to $10 in quarterly Instacart credit (through July 31, 2024).

Winner: The Chase Freedom Unlimited. Unless you need a credit card with cell phone insurance, the Freedom Unlimited’s benefits trump those offered by the Active Cash Card.

The Freedom Unlimited and Wells Fargo Active Cash Cards both have no annual fee, a 3% foreign transaction fee and a 15-month 0% intro APR on purchases and balance transfers from account opening.

After the intro APR expires, the Freedom Unlimited has a 20.49% to 29.24% variable APR and the Active Cash has a similar 20.24%, 25.24%, or 29.99% variable APR. Both cards have an intro balance transfer fee of 3% of the amount transferred ($5 minimum) and a standard balance transfer fee of 5% of the transfer amount ($5 minimum).

The most significant difference is the amount of time you have to complete a balance transfer and qualify for the no-interest period or intro balance transfer fee.

The Freedom Unlimited gives you 60 days from account opening to qualify for the intro balance transfer fee, and balance transfers can qualify for the 0% APR at any point during the first 15 months. Keep in mind that the intro-APR period begins when you open the card, not when you complete the balance transfer. So the longer you wait to complete a transfer, the fewer months you’ll receive a 0% APR.

With the Wells Fargo Active Cash, you have 120 days from account opening to make a balance transfer and receive the intro balance transfer fee and 0% intro APR.

Winner: Tie. The intro APR offers and important fees are so similar that your decision isn’t likely to hinge on the fees.

The Wells Fargo Active Cash and Chase Freedom Unlimited cards are two of the best no-annual-fee cash-back cards. The best option for you largely comes down to personal preference. The Freedom Unlimited has the potential to be much more valuable if you pair it with another Chase card that enables point transfers or if you spend heavily in the card’s bonus categories. For anyone who prefers a simpler approach, the Active Cash card offers a no-nonsense intro bonus and flat-rate cash rewards.

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