The Chase Freedom and Freedom Unlimited are two of the most valuable cash back rewards credit cards on the market. They both come with decent sign-up bonuses (worth $175 or more) and they also earn fantastic rewards based on their different earning structure. But the Chase Freedom cards definitely have at least one shortcoming. And it’s that there are foreign transaction fees for both the Chase Freedom and Freedom Unlimited.
What is the Chase Freedom foreign transaction fee?
- The Chase Freedom foreign transaction fee is 3%.
Moreover, the earning potential of these cards makes up for the transaction fee. The Freedom earns 5X the points on rotating quarterly categories like gas, groceries, department stores, and dining and the Freedom Unlimited earns 1.5X on all purchases. The fact that these cards offer those earning rates is significant enough to overlook the fact that the Chase Freedom comes with a foreign transaction fee.
Chase cards that don’t come with foreign transaction fees
In addition, if you were worried about paying the Chase Freedom foreign transaction fee of 3% you could always look into a credit card like the Chase Sapphire Preferred. That cards earns 2X on all dining and travel purchases (which is good) but also comes with no foreign transaction fees. It’s annual fee is only $95 and it’s waived the first year. It also comes with a high sign-up bonus of 50,000 points (55,000 when you add an authorized user).
Another option might be to look into the Chase Sapphire Reserve which earns 3X on all dining and travel purchases and comes with a 50,000 point sign-up bonus. It comes with a much higher annual fee of $450 but it’s $300 annual travel credit wipes that fee down to $150. This card also comes with Priority Pass access which will get you into all of those fancy airline lounges around the US and the world. And finally, you can’t forget about the amazing protections of the Chase Sapphire Reserve.
Depending on how much money you spend a year, it could end up making economic sense to go with the Reserve over the Preferred. Keep in mind that both of these cards offer primary rental car insurance. So if you normally book rental cars each year, the rental car coverage could be worth the annual fee alone.
Overall, the Chase Freedom foreign transaction fee of 3% isn’t a huge deal because the Freedom cards come with no annual fees and offer great opportunities for rewards. Moreover, there are other credit card options by Chase that could fill in the need for a no foreign transaction fee credit card and they come with plenty of value.