One of the greatest cashback credit cards is the Chase Freedom Unlimited®, but the Blue Cash Preferred Card from American Express is also a strong contender. High-value extra points may be earned in various everyday spending areas with each card, and each comes with a hefty welcome gift designed to boost spending in the first year.

However, a few critical distinctions between the two might help you choose which is best for your financial situation. For example, Chase Freedom Unlimited allows regular fliers to earn points on everyday purchases and planned flights without charging an annual fee.

Compared to the Amex Blue Cash Standard, the Amex Blue Cash Preferred charges an annual premium but gives better points rates on popular categories. Before applying for these two cashback credit cards, here's everything you need to know.

Comparison of Bonuses

You have a year from the time you open your Chase Freedom Unlimited account to complete the requirements and get your welcome bonus. With the bonus cashback offer, the card is effectively a 3% flat cashback card in the first year, excluding bonus categories.

To get the maximum $300 rebate, you'll need to spend at least $20,000 on the site within a year, which works out to around $1,667 per month. Although a $250 sign-up bonus is associated with the American Express Blue Cash Preferred, it may be earned faster and with less overall expenditure.

To be eligible, spend $3,000 in the first six months. Chase Freedom Unlimited's sign-up bonus might be a fantastic deal for the first year if you have the disposable income to spend more than $1,600 regularly.

Evaluation of Rewards and Costs

In common spending areas, these two credit cards provide outstanding rewards. The best card for you is the one you use, so think about where you spend the most money and how much you spend annually before making a decision.

Earning additional rewards at U.S. supermarkets is where the Blue Cash Preferred shines. When shopping at U.S. supermarkets, you'll get 6% cash back on the first $6,000 you spend each year and, afterward, 1%. You'll get 6% cash back on some streaming services, 3% on U.S. petrol stations and public transportation, and 1% on everything else.

This card is ideal for those who spend a lot on necessities like food and petrol, regardless of whether they have a family or live in a city with public transit and prefer nights in with their favorite streaming services.

APRs

New purchases and debt transfers are eligible for 0% APR on both cards, but Chase Freedom Unlimited's offer lasts longer. For the first 12 months, purchases and debt transfers are interest-free with the Blue Cash Preferred.

After that, the variable rate is 16.99% to 27.99%. Take advantage of this type of initial deal when you plan to make a sizable, soon-to-be-paid-off purchase, like a piece of furniture or a vacation, and want to spread out the cost over time.

Suppose you're thinking about transferring a debt. Chase Freedom Unlimited may be your best bet due to its introductory 0% APR on both purchases and balance transfers for the first 15 months, after which the variable APR will range from 17.99% to 26.74%.

Fees

Compared to Chase's no-annual-fee Freedom Unlimited card, Blue Cash Preferred's cost is $95. There is a 5% cash advance fee with both cards and a 3% cost for purchases made outside the country.

Chase Freedom Unlimited charges a 3% balance transfer fee for all transfers made to the card. There is no provision for transferring balances on the Blue Cash Preferred Card. There is a $40 maximum on both cards' late payment cost and the returned payment fee.

Choosing Between the Chase Freedom Unlimited and the Blue Cash Preferred

You may get a lot more value from your purchases when you use one of these two cashback credit cards. The ideal option for you is the one for which you are prepared to pay the annual fee, makes the most sense for how you expect to use the card, and has the greatest rewards program for your spending habits.

When comparing Chase Freedom Unlimited with the Blue Cash Preferred, the former is preferable due to its balance transfer introductory offer. While paying off debt, it's in your best interest to refrain from making further purchases.

Still, after you've accomplished this, you can start reaping the benefits of Freedom Unlimited's cashback incentives by engaging in responsible credit practices. If you currently have a Chase Sapphire card and travel frequently, consider Chase Freedom Unlimited. To optimize incentives on future travels, you can accumulate points.