When making many of the critical life decisions that you will confront after graduation, an excellent credit score is important. In the same way, having a credit card always needs a good credit history also. However, there are still various credit cards that do not need good credit history available. It is called student credit cards. Most of them have their own set of bonuses for various kinds of students ranging from travelers and foodies to commuters and foreign students. Some cards have flexible credit history criteria, which means you might qualify even if you have no credit history at all. If you are interested in it, do not hesitate to read this article. We will let you know more about one of the best student credit cards, Chase Freedom.
List of Contents
What Exactly Is a Student Credit Card?
A student credit card is a kind of credit card that banks and financial institutions offer to students and recent graduates. Importantly, they often feature lower credit limits. Moreover, in some cases, greater credit approval rates for students with little or no credit history and low income. Nevertheless, if you are under the age of 21, they may require a co-signer.
Chase Freedom
Welcome Bonus: $50
Annual fee: $0
Regular APR: 16.49% Variable
Credit Score: Excellent/Good Credit
Why We Selected It
As we know, establishing a credit history while in school is a hard task. However, they provide a crash course in credit management. Importantly, banks will first issue student credit cards with lesser limits and smaller incentives. Therefore, students will be able to upgrade to more profitable credit card reward alternatives.
The most interesting point is that the Chase Freedom student credit card provides cash-back benefits without incurring an annual fee. Thus, students don’t have to worry about keeping track of a greater minimum spending requirement since they can obtain a $50 bonus after making their first purchase within the first three months of account setup.
In addition, students will get a $20 bonus on their credit card anniversary for the first five years the card is open and in good condition. Significantly, the Chase Freedom rewards students who fulfill credit conditions with an increase in credit limit after making five on-time payments during the first ten months after acquiring the card. Besides, they will get unrestricted access to their credit score via Chase’s Credit Journey service. This card also provides additional appealing perks that many other student cards do not. On qualified purchases, students will get purchase protection and an extended warranty.
Card Details
- $50 bonus with the first payment during the first three months of account creation.
- There is no yearly charge.
- After five on-time payments, qualified cardholders’ credit limits are increased.
- $ 20-anniversary bonus for accounts that have been open for at least five years.
- Get an unlimited 1% cash back.
- There is no minimum to redeem for cash back. As long as the account is active, the cashback benefits will not expire.
- Chase Credit Journey offers a completely free credit score.
- Warranty extension protection is offered.
Bonuses
Earning Bonuses
With the Chase Freedom student credit card, you may receive an unlimited 1% cash back on all transactions. In addition, new cards will earn a $50 incentive after making their first purchase during the first three months after account setup. Students will also receive a $20 “Good Standings Rewards” bonus on their account anniversary every year you keep your account open. Importantly, students can earn this incentive for up to five years.
Potential Benefits
Finxpd utilizes data from multiple government organizations to expenditure averages across various categories to assess the potential of the Chase Freedom student credit card. Food, transportation, entertainment, and other common costs cost the average student $13,640 per year. Many of these costs may be paid for using a credit card, allowing you to earn points. If you pay for half of your potential spending with this card, you can expect to earn $68.20 in cash-back rewards every year.
Redeeming Bonuses
Students may redeem the points for cash back at any time and in any amount. When it comes to claiming your rewards, 5,000 points equals $50 in cash back. This might be a statement credit or a direct payment into your bank or savings account. Importantly, all earned incentives do not expire as long as your account is active and in good standing.
Pros
- There is no annual fee.
- Get 1% cash back on all purchases.
- The credit limit increases after five on-time payments.
- Accounts in great condition will get a $20 account anniversary bonus for the next five years.
- Get a $50 welcome bonus after your first purchase during the first three months.
Cons
- There are no other expense categories.
Conclusion
To conclude, the Chase Freedom student credit card is another excellent option for students who would benefit from a long-term partnership with Chase. Importantly, it features no yearly charge and a simple welcome bonus to earn. However, other student credit cards may also be a good alternative. You should deeply find the information on each card before registering.
FAQs
The Chase Freedom Student Credit Card comes with a number of perks, including 1% cash back on all purchases and no annual fee. Students can also get a $50 incentive after making their first purchase within three months of starting their account. Furthermore, the card gives kids access to credit education and tools to help them develop their credit history.
To be eligible for the Chase Freedom Student Credit Card, you must be a college, university, or vocational school student. In addition, you must have a valid Social Security number and complete all other credit standards. It is crucial to understand that you may not have a long credit history as a student, but the Chase Freedom Student Credit Card is meant to assist you in establishing credit.
Your credit limit with the Chase Freedom Student Credit Card will be determined by a number of criteria, including your credit score, income, and credit history. As a student, you may be authorized for a lesser credit limit at first, but by using the card responsibly, you may be able to boost your credit limit over time.
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Read more: Popular Credit Cards
Source: Forbes