What Chase credit cards do and how to pick between them
Chase offers roughly 20 active credit cards, each built around a different spending pattern or financial goal. Some reward you for travel purchases, some for groceries and gas, some for flat cash back on everything. The card that makes sense for you depends on what you spend money on, how much you spend, whether you'll use the rewards, and whether you can pay the annual fee back through rewards or benefits.
The comparison process is straightforward: list the categories where you spend the most, check what each card pays in those categories, subtract the annual fee, and see what you'd actually earn in a year. A card with a $95 annual fee that earns you $1,200 in rewards beats a card with no fee that earns you $400. But a card with a $95 fee that earns you $80 in rewards does not.
Key Takeaways
- Chase cards fall into four groups: travel rewards, cash back, points-based, and business cards, and each group has different earning rates and annual fees.
- Your best card depends on where you spend the most money — groceries, gas, dining, travel, or everything equally — not on which card sounds best.
- Many Chase cards waive the annual fee in the first year, so you can test whether the rewards actually cover the fee before you commit to keeping it.
- Chase's Ultimate Rewards points can be transferred between some of their cards, so owning multiple cards can sometimes be more valuable than owning one.
- The card you're approved for depends on your credit score and history, not just on which card you want — Chase typically approves cards starting around 670 credit score.
The four main groups of Chase cards
Travel rewards cards earn points on flights, hotels, rental cars, and dining, then let you redeem those points for travel or transfer them to airline and hotel partners. The Sapphire Preferred and Sapphire Reserve are Chase's flagship travel cards. Both charge annual fees ($95 and $550) but include travel protections, airport lounge access, and statement credits that offset the cost for frequent travelers.
Cash back cards earn a percentage of your spending as cash that goes straight back to your account — no points to track or redeem. The Freedom Unlimited earns 1.5% cash back on everything with no annual fee. The Freedom Flex earns higher rates in rotating categories (5% on groceries and gas up to certain limits, then 1%) and costs nothing per year. These are straightforward: you spend, you earn, the money appears.
Points-based cards earn Ultimate Rewards points that you can redeem for cash, travel, or transfers to partners. The Ink Business Preferred and Ink Business Unlimited are designed for business owners and self-employed people, but anyone can open them. The Sapphire cards also earn Ultimate Rewards, which is why owning multiple Chase cards can work — you pool your points and redeem them where they're worth the most.
Business cards are structured the same way as consumer cards but include business-specific benefits like expense tracking tools and higher spending limits. You don't need to be incorporated or have employees to open one — sole proprietors and side businesses may have access to. Business cards typically report to business credit bureaus, not personal credit bureaus, so they may not help your personal credit score.
How to calculate whether a card's annual fee is worth it
Start with your spending in the last three months. Add up what you spent on groceries, gas, dining, travel, and everything else. Then look at what each card you're considering would earn on those categories.
Example: You spend $400 a month on groceries, $300 on gas, $200 on dining, and $1,000 on everything else. The Freedom Flex earns 5% on groceries and gas (up to $1,500 per quarter, then 1%), and 1% on everything else. In a year, you'd earn roughly $240 on groceries and gas (5% on $4,800), plus $120 on other spending (1% on $12,000), for a total of $360. No annual fee, so you keep all $360.
Compare that to the Sapphire Preferred, which earns 3% on dining and travel, 1% on everything else, and costs $95 per year. On your spending, you'd earn $72 on dining (3% on $2,400), plus $165 on everything else (1% on $16,500), for $237 total. Minus the $95 fee, you net $142. The Freedom Flex wins in this scenario.
But if you travel twice a year and book flights and hotels through the card, the Sapphire Preferred's 3% on travel and its $50 annual travel credit could swing the math. The comparison changes based on your actual spending, not on which card sounds premium.
Understanding Chase's Ultimate Rewards points system
Several Chase cards earn Ultimate Rewards points instead of cash or airline miles. These points can be redeemed three ways: as cash back (usually 1 cent per point), as travel bookings through Chase's travel portal (usually 1.25 to 1.5 cents per point), or transferred to airline and hotel partners (value varies widely).
The value of your points depends on how you redeem them. If you redeem 50,000 points for cash, you get $500. If you redeem the same 50,000 points for a flight through the Chase travel portal, you might get $600 to $750 worth of travel, depending on the flight. If you transfer them to a partner airline, the value could be higher or lower depending on that airline's redemption rates.
This matters when you own multiple Chase cards. The Freedom Unlimited, Freedom Flex, Sapphire Preferred, and Sapphire Reserve all earn Ultimate Rewards. You can combine points from all of them into one account and redeem them together. A person who uses the Freedom Flex for everyday spending and the Sapphire Preferred for travel can pool their points and redeem them where they're worth the most.
Annual fees, first-year waivers, and when to keep or cancel
Chase waives the annual fee in the first year for most of their cards. This means you can open a card, earn rewards for 12 months, and decide before the fee hits whether the rewards justify keeping it. If they don't, you cancel before the annual fee posts.
Some cards, like the Sapphire Reserve ($550 annual fee), include statement credits that reduce the effective cost. The Reserve includes a $300 annual travel credit and a $120 annual dining credit, which brings the real cost down to $130 if you use both. Other cards, like the Freedom Unlimited, have no annual fee at all, so there's no decision to make — you keep it or cancel it based on whether you like the rewards rate.
The math changes if you're a heavy user. Someone who spends $50,000 a year on travel and dining might earn $1,500 in rewards on the Sapphire Reserve, making the $550 fee a bargain. Someone who spends $5,000 a year on travel and dining might earn $150, making the fee a loss. Your spending, not the card's prestige, determines whether to keep it.
Credit score requirements and approval odds
Chase typically approves applicants with a credit score of 670 or higher for their consumer cards, though some cards (like the Sapphire Reserve) prefer scores above 740. Business cards have similar thresholds but also consider business credit history if you have one.
Your approval odds also depend on how many Chase cards you've opened recently. Chase has an informal rule called "Chase velocity" — if you've opened multiple Chase cards in a short period, they may deny your next process or approve you for a lower credit limit. There's no published rule, but opening more than one Chase card per 30 days can trigger extra scrutiny.
If you're denied, you can call the reconsideration line and ask why. Sometimes the issue is a recent hard inquiry or a recent account opening, not your credit score. Chase reconsideration specialists can sometimes approve you on the phone if you explain your situation.
Comparing specific cards side by side
| Card | Annual Fee | Best for | Key earning rates |
|---|---|---|---|
| Freedom Unlimited | $0 | Everyday spending with no annual fee | 1.5% cash back on everything |
| Freedom Flex | $0 | Groceries and gas with rotating categories | 5% on groceries and gas (capped), 1% everything else |
| Sapphire Preferred | $95 | Travel and dining with points flexibility | 3% travel and dining, 1% everything else |
| Sapphire Reserve | $550 | Premium travel with credits and lounge access | 3% travel and dining, 1% everything else, plus $420 in credits |
| Ink Business Unlimited | $0 | Business spending with no annual fee | 1.5% cash back on everything |
| Ink Business Preferred | $95 | Business travel and categories with points | 3% on travel, internet, and phone; 2% on shipping and fuel |
Frequently Asked Questions
Can I have multiple Chase credit cards at the same time?
Yes. Many people own two or three Chase cards to earn rewards in different categories and combine their points. Chase doesn't limit the number of cards you can hold, but they do watch how fast you open new accounts. Opening more than one card per 30 days can reduce your approval odds on the next process.
What's the difference between Chase points and cash back?
Cash back is money that posts directly to your account — you earn 1.5% and get $15 on a $1,000 purchase. Points are a currency you redeem later, usually for cash, travel, or transfers to partners. Points can sometimes be worth more than cash if you redeem them for travel, but they require an extra step.
Do I need good credit to get approved for a Chase card?
Chase typically approves applicants with a credit score around 670 or higher. Some premium cards like the Sapphire Reserve prefer scores above 740. If you're denied, you can call Chase's reconsideration line to ask why — sometimes approval is possible with an explanation.
Should I close a Chase card after the first year if I don't want to pay the annual fee?
You can close it, but closing a card can lower your credit score by reducing your available credit and increasing your credit utilization ratio. If the card has no annual fee, keeping it open costs nothing and helps your score. If it has an annual fee you don't want to pay, closing it is reasonable, but call Chase first to see if they'll waive the fee.
How long does it take to earn enough rewards to cover an annual fee?
It depends on your spending and the card's earning rate. A card with a $95 annual fee that earns 3% on $2,000 of monthly spending would earn $720 per year, covering the fee in about six weeks. A card earning 1% on $500 of monthly spending would earn $60 per year and never cover a $95 fee. Calculate your own spending to know whether a fee makes sense for you.