Sunday, 20 October 2019

Chase Freedom Student Credit Card Review

Chase Freedom Student Credit Card Review
25 Jul
12:58

The information related to Chase Freedom® Student credit card has been collected by MagnifyMoney and has not been reviewed or provided by the issuer of this card prior to publication. Terms apply to Chase credit card offers. See chase.com for more information.

Want to build your credit while you’re a student in college? It’s smart to start building your credit history early, and the Chase Freedom® Student credit card can give you the opportunity to do that while also letting you earn a flat rewards rate on most purchases.

The card’s annual fee is $0, and at 17.24% variable APR, the APR is lower than some competing student credit cards. On top of that, you get a chance to earn $20 each year for five years for keeping your account in good standing.

Take a look at our review below to see if this card might be the right one to help you start your credit journey.

What we like about the Chase Freedom® Student credit card

Straightforward rewards. If you’re not interested in a complicated card rewards program, you’ll like the Chase Freedom® Student credit card’s rewards structure, which offers 1% cash back on purchases (with a few exceptions, like money orders and lottery tickets). It should be noted that cash back is tracked as cash back rewards points, with $1 being worth 100 points. Points can go toward statement credits, direct deposits, Amazon.com shopping, gift cards and certificates, and booking travel via Chase Ultimate Rewards.

Good Standing Rewards. For the first five years of your account, if your account remains open and not in default, you can earn 2,000 points after your account anniversary as a good standing reward. This comes out to a $20 value.

Signup bonus. The Chase Freedom® Student credit card offers the chance to earn a <span data-sheets-value="{"1":2,"2":"$50 sign-up bonus after making their first purchase on the card within the first three months<!–Chase Freedom® Student credit card–>"}” data-sheets-userformat=”{"2":513,"3":{"1":0},"12":0}”>$50 sign-up bonus after making their first purchase on the card within the first three months

No annual fee. We always like when you can earn rewards on a card with a $0 annual fee. This is especially true for credit cards aimed at college students, who are often on a tight budget.

Credit limit increase. After making five monthly payments on time within 10 months of opening your account, you may be eligible to be approved for a higher credit limit.

Free credit score. This card comes with access to Chase Credit Journey, which lets you check your credit score at no cost.

Competitive interest rate. At 17.24% variable APR, this isn’t the lowest APR you’ll find on a credit card — but it’s lower than some competing credit cards aimed at students. For instance, the Discover it® Student Cash Back comes with an APR ranging from 15.24% – 24.24% Variable, and the Journey® Student Rewards from Capital One® comes with an APR of 26.96% (Variable). Still, you shouldn’t carry a balance. Interest charges can quickly increase your credit card debt. It’s better to build a habit of paying off your card in full each month.

What we don’t like about the Chase Freedom® Student credit card

There’s no 0% APR introductory period. This card starts you right at the regular 17.24% variable APR. There’s no intro period for purchases or balance transfers.

Foreign transaction fee. If you’re planning to study abroad, this might be a credit card you leave at home. If you use it outside the United States, you’ll pay a foreign transaction fee of 3% of the amount of each transaction in U.S. dollars.

No online application. Chase rolled this card out in June 2019. As of mid-July 2019, there was no option available to apply for the card online — that means having to take time to visit a physical Chase branch if you want to apply for the Chase Freedom® Student credit card.

Who the card is best for

The Chase Freedom® Student credit card is best for college students looking to build credit and earn a flat cashback rewards rate, and who don’t need a card to use outside the United States, since it does charge a foreign transaction fee for purchases made abroad.

Alternatives to the Chase Freedom® Student credit card

If you want a higher cashback rate

The Discover it® Student Cash Back charges a $0 annual fee and offers an excellent cashback rate — 5% cash back at different places each quarter like gas stations, grocery stores, restaurants, Amazon.com and more up to the quarterly maximum each time you activate, 1% unlimited cash back on all other purchases – automatically. Discover will match ALL the cash back you’ve earned at the end of your first year, automatically. On top of that, you can get a $20 statement credit each school year that your GPA is 3.0 or higher for up to five years after opening your account. Finally, this card offers intro APR of 0% for 6 months. After that, the interest rate is 15.24% – 24.24% Variable.

Discover also offers free access to your FICO score, which is a nice benefit as you’ll be able to monitor your progress over time as you use the card responsibly.

Read our full review of the Discover it Student Cashback Card.

If you want to travel abroad

Journey® Student Rewards from Capital One®

Journey® Student Rewards from Capital One®

APPLY NOW Secured

on Capital One’s website

Journey® Student Rewards from Capital One®

Annual fee
$0
Rewards Rate
1% Cash Back on all purchases; 0.25% Cash Back bonus on the cash back you earn each month you pay on time
Regular Purchase APR
26.96% (Variable)
Credit required
bad-credit
Average/Fair/Limited

The Journey® Student Rewards from Capital One® offers 1% Cash Back on all purchases; 0.25% Cash Back bonus on the cash back you earn each month you pay on time — that comes out to a higher flat rate than the Chase Freedom® Student credit card. As far as a foreign transaction fee, there is None. The annual fee is $0 and the balance transfer fee is $0.

You can also monitor your VantageScore 3.0 credit score with CreditWise from Capital One, and you have the opportunity to get access to a higher credit line after making your first five monthly payments on time.

However, it also an APR of 26.96% (Variable), so you definitely want to avoid carrying a balance.

Read our full review of the Journey® Student Rewards from Capital One®.

The bottom line

The Chase Freedom® Student credit card offers a chance to earn rewards points with a straightforward, flat rate on most of your purchases. It also has a more attractive APR than some competing student credit cards, in the event that you might need to carry a balance. Finally, the chance to get a $20 annual bonus for up to five years is a nice perk.

However, if you’re willing to pay attention to rotating categories, you can earn a higher cashback rate with the Discover it® Student Cash Back — and Discover will match ALL the cash back you’ve earned at the end of your first year, automatically, and there’s a chance to earn a $20 statement credit each year for five years based on your grades.

And for students looking to travel outside the country without worrying about foreign transaction fees, the Journey® Student Rewards from Capital One® might be a better option than the Chase card.

For more student cards options, head over to our recommendations on the best student credit cards and take a look.

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Glen Luke Flanagan

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Source: https://www.magnifymoney.com/blog/credit-cards-2/chase-freedom-student-credit-card-review/

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