It’s not uncommon to have more than one credit card. For some, the incentive to hold multiple cards varies widely—they could want to own cards on multiple payment networks or pair cards with different earning structures. Perhaps they’re seeking perks with a particular card like a generous welcome bonus or airport lounge access.
Although you should be prudent with the number of credit card applications you submit, both from the perspective of taking care of your credit score as well as ensuring you don’t get denied by banks or credit card issuers, there are scenarios where it can be beneficial to have more than one of the same—or similar—credit cards.
As an example, consider whether this strategy might be right for you when it comes to the Chase Freedom Flex℠ and Chase Freedom Unlimited® cards.
Chase Freedom Flex℠ Mini Review
Despite having no annual fee, the Chase Freedom Flex℠ card offers impressive benefits and rewards. Attributes of the Chase Freedom Flex℠ include:
- Earn a $200 bonus after spending $500 on purchases in the first 3 months from account opening
- Earn 5% cash back on up to $1,500 in combined purchases in categories that rotate quarterly (requires activation), 5% cash back on travel purchased through Chase Travel℠, 3% cash back on dining and drugstores and 1% cash back on all other purchases
- Marketed as a cash-back card but earns Chase Ultimate Rewards® points
- $0 annual fee
One of the best attributes of the Chase Freedom Flex℠ is the 5% rotating quarterly bonus categories. Earning 1% cash back on regular purchases is so-so, but if you can maximize the 5% bonus categories, you can earn a fair bit back with this card. The 5% quarterly bonus categories are usually on everyday staples like gas, restaurants, warehouse clubs and grocery stores. Earning 3% back on dining is also on par with some of the best rewards cards on food spending.
If you only have the Chase Freedom Flex℠, your Chase Ultimate Rewards® points are only worth 1 cent each. But if you pair a Chase Freedom Flex℠ with a Chase Sapphire Preferred® Card, Chase Sapphire Reserve® or Ink Business Preferred® Credit Card, you can unlock the ability to redeem your rewards for travel at a greater value through Chase Travel℠ or even transfer your Chase Ultimate Rewards® points to airline and hotel partners. Points redeemed in this way can be worth more than 1 cent each.
Owning only a Chase Freedom Flex℠ means you cannot transfer your Chase Ultimate Rewards® to hotel and airline travel partners. Premium Chase cards also offer an increased redemption value when you use your points for travel through the Chase Travel portal, of either 25% or 50% more value, depending on which premium card you have.
Chase Freedom Unlimited® Mini Review
The Chase Freedom Unlimited® has a simple earning structure:
- Earn an additional 1.5% cash back on up to $20,000 spent in the first year, worth up to $300 cash back
- Earn 5% cash back on travel purchased through Chase Travel℠, 3% cash back on eligible dining and drugstores and 1.5% on all other purchases, plus an additional 1.5% cash back on the first $20,000 in purchases the first year
- Marketed as a cash-back card but earns Chase Ultimate Rewards® points
- $0 annual fee
There are other cards, like the Citi Double Cash® Card, that earn 2% cash back on all purchases—1% when purchases are made and another 1% when they’re paid off, so earning 1.5% cash back isn’t the best flat rate out there. The real benefit is that your cash back from the Freedom Unlimited comes as Chase Ultimate Rewards®. You can redeem your points for cash back, but the real value is pairing it with a premium Chase card to combine your rewards and access higher-value point redemptions.
Like the Freedom Flex card, you can’t transfer your Chase Ultimate Rewards® to hotel and airline travel partners without a premium Chase card. But if you have a premium Chase card such as the Chase Sapphire Reserve, you can transfer the points earned with your Chase Freedom Unlimited to your Sapphire Reserve and redeem points for more value, either through the Chase Travel portal or by transferring your Ultimate Rewards to hotel and airline partners.
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When Having Multiple Freedom Flex or Freedom Unlimited Cards Could Make Sense
Although it might seem counterintuitive to have both the Chase Freedom Flex and Freedom Unlimited or two of the same card, it can be beneficial in some cases.
With the Freedom Unlimited card, there’s no benefit to owning more than one as the card earns 1.5% cash back with no limits on all purchases.
However, the Chase Freedom Flex card is another story. With the Freedom Flex, you’re limited in how much you can earn in the quarterly 5% back categories. You only earn 5% cash back on the first $1,500 spent in bonus categories each quarter, then you’ll earn 1%. If you regularly spend over the $1,500 quarterly cap on the Freedom Flex, you can earn more rewards by picking up a second Freedom Flex card.
It may be more difficult to be approved for a second Freedom Flex card if you already have one, but one option is to request a product change.
A product change means converting an existing credit card to another type offered by the same issuer. If you have another Chase card you want to close due to lack of use or because you don’t want to pay the annual fee, you may be able to convert it to another Freedom Flex card instead of closing that account.
Similarly, having a Freedom Flex card and a Freedom Unlimited may make sense, especially if you have a premium Chase card that allows you to get more value for your points. This is because the Freedom Flex earns elevated rewards in several areas of spending, but only 1% cash back on the rest. By purchasing anything outside of the 5% or 3% categories on the Freedom Flex with a Freedom Unlimited, you can earn 1.5% cash back instead of the 1% you’d otherwise earn.
