Searching for a simple, no-annual-fee cash-back credit card? The Active Cash vs. Freedom Unlimited are likely at the top of your list. Both cards offer generous rewards without a spending cap and provide an introductory APR period, which is great if you need to manage existing high-interest debt.
However, their reward structures are quite different. The Chase Freedom Unlimited features a tiered system with a baseline of 1.5% cash back on all purchases, plus higher rates in specific bonus categories. In contrast, the Wells Fargo Active Cash Card offers a straightforward 2% flat cash rewards rate on all purchases.
While both are strong options, the Chase Freedom Unlimited often comes out ahead due to its higher earning potential in popular spending categories and more flexible redemption options. This guide will compare these two cards across key features to help you decide which one best fits your spending habits and financial goals.
Active Cash vs. Freedom Unlimited: Comparing Annual Fees
Winner: Tie
Both the Chase Freedom Unlimited and the Wells Fargo Active Cash Card have a $0 annual fee. This is a significant advantage, as it means you can keep either card long-term without feeling pressured to spend enough to justify a yearly cost.
You can enjoy the benefits and rewards without worrying about an annual charge cutting into your earnings.
Welcome Offer
Winner: Wells Fargo Active Cash
When it comes to the sign-up bonus, the Wells Fargo Active Cash Card has a more accessible spending requirement. New cardholders can earn a $200 cash rewards bonus after spending just $500 on purchases within the first three months.
The Chase Freedom Unlimited offers a different kind of welcome bonus, allowing you to earn an extra 1.5% cash back on everything you buy (on up to $20,000 spent in the first year).
While this could potentially yield a higher reward of up to $300, it requires a substantial spending of $20,000 to maximize.
For most people, the lower spending threshold of the Wells Fargo Active Cash makes its bonus easier and faster to achieve.
Rewards and Redemption
Winner: Chase Freedom Unlimited
The Chase Freedom Unlimited stands out with its versatile rewards structure and valuable redemption options. Cardholders earn:
- 5% cash back on travel purchased through Chase Travel
- 5% cash back on Lyft rides (through March 31, 2025)
- 3% cash back on dining at restaurants, including takeout and eligible delivery services
- 3% cash back on drugstore purchases
- 1.5% cash back on all other purchases
Though marketed as a cash-back card, you actually earn Chase Ultimate Rewards points. These points can be redeemed for cash back as a statement credit or direct deposit.
However, the real power comes when you pair the Freedom Unlimited with a premium Chase card like the Chase Sapphire Preferred® or Chase Sapphire Reserve®.
By transferring your points to one of these cards, you can redeem them for travel through the Chase portal for 25% to 50% more value or transfer them to airline and hotel partners for potentially even greater returns.
The Wells Fargo Active Cash Card keeps things simple with a generous flat rate of 2% cash rewards on purchases.
This straightforward approach is appealing, but its redemption options are less flexible. You can redeem rewards for cash in $25 increments online or over the phone, or in $20 increments at a Wells Fargo ATM. Other options include statement credits, gift cards, or paying for purchases via PayPal.
Card Perks
Winner: Chase Freedom Unlimited
The Chase Freedom Unlimited offers a more robust suite of cardholder benefits. These perks include:
- Purchase Protection: Covers new purchases against damage or theft for 120 days, up to $500 per claim.
- Extended Warranty Protection: Extends the U.S. manufacturer’s warranty by an additional year on eligible warranties of three years or less.
- Trip Cancellation/Interruption Insurance: Provides reimbursement up to $1,500 per person and $6,000 per trip for pre-paid, non-refundable passenger fares if your trip is cut short or canceled by sickness, severe weather, and other covered situations.
- Auto Rental Collision Damage Waiver: Offers secondary coverage for theft and collision damage for most rental cars.
- DoorDash DashPass: Includes three months of complimentary DashPass membership (must be activated by December 31, 2024).
The Wells Fargo Active Cash Card’s benefits are more limited, primarily offering cell phone protection.
When you pay your monthly cell phone bill with the card, you get up to $600 of protection against damage or theft (subject to a $25 deductible). It also includes 24/7 concierge services and access to the Visa Signature Luxury Hotel Collection.
Making Your Choice!
While the Wells Fargo Active Cash Card is an excellent choice for its simplicity and high flat rewards rate, the Chase Freedom Unlimited ultimately offers more value for most people.
Its bonus categories in common spending areas like dining, travel, and drugstores mean many cardholders will earn more rewards overall.
The added flexibility of the Ultimate Rewards program—especially when paired with another Chase card—and the comprehensive suite of travel and purchase protections make the Freedom Unlimited a more powerful financial tool.
If you want a card that maximizes rewards across various spending categories and offers valuable perks, the Chase Freedom Unlimited is hard to beat!