College is an ideal time to start building a credit history in many ways, and when you’ve started out, your options may be limited. But as a student, you want to look into student credit cards that have many benefits, and also who allows you to start earning rewards while improving your credit history. Based on credit history, it will be much easier for you to apply for car loans and mortgages or renting an apartment.
So if you’re a student and looking for some information on student credit cards, you’ve landed on the right page. Today we’re going to tell you all about the Chase Freedom Student Credit Card. It is the first student card from Chase, which is currently one of the famous credit card issuers in the market. Besides offering great cash backs and incentives for good credit history, the Case Freedom Student Credit Card also gives financial health support to young adults. So keep on reading to find all the information about their benefits & drawbacks, what Chase Student Credit Card offers, and how to make the most of it?
Here’s is the pros and cons of the Chase Freedom Student Credit Card in the tabular form:
|Good Standing rewards||Must apply in person|
|Automatic credit limit increase available||No introductory APR|
|Simple rewards program||3% foreign transaction fee|
|Relatively low-interest rate||No co-signers allowed|
Now let’s see all of the points in detail to get more information. First starts with the advantages you get in this student card:
Good Standing Rewards
For every year that your account is in good standing (it is not delinquent or in default), you’ll receive 2,000 points. You can redeem these points for $20 or in rewards. The best thing is that you can receive this benefit for up to five years. In short, you can earn $100 just for making your payments on time.
Automatic Credit Line Increase
Another chase student credit card benefit is that after opening your account, the bank will automatically consider you for a credit increase if you just make five monthly payments on time for ten months. Now you might be thinking, what is the benefit of this?
For example, if you qualify for a credit increase, you’ll get more spending power, and also you’ll see a hike in your credit score. But you’ll be disqualified from the credit line increase if you have a history of late payments within the first 10 months.
Simple Rewards Program
In the Simple Rewards Program, you’ll get 1% cash back on every purchase you make. Also, you don’t have to remember spending categories to get this offer, just swipe your card, and it will automatically put cash back rewards in your account.
Relatively low-interest rate
The variable APR on this card is quite low as compared to other student cards, and also everyone gets the same rate.
Must Apply in Person
Chase’s credit card’s first drawback is that you have to sign up for the card by visiting a Chase Bank. There is no other way around. We know that as a college student, you have regular classes and have a pretty tight schedule. What if there is no Chase branch near your college? You have to travel all the way to the bank with limited transportation options. It will be much easier for any student if they are able to apply for a card online rather than visiting the bank.
No Introductory APR
The Chase bank offers you a $50 bonus for your first purchase, but the student card doesn’t have an 0% APR offer on purchases or balance transfers. It is a significant drawback if you want to buy big items such as a couch or laptop.
3% Foreign Transaction Fee
Another drawback of the Chase student Credit Card is that it has a 3% foreign transaction fee. That means you have to pay an extra 3% on every purchase you make outside of the country, and these fees can add up and cost you around hundreds of dollars. Which is really bad for those students who want to do summer internships or plan to travel to other countries.
No co-signers allowed
By the US Law, credit cards can be issued to those applicants under 21 who have an independent source of income or if they can get a qualified adult to co-sign. But Chase doesn’t allow co-signers. Because of this, many college freshmen, juniors are not qualified for the card. So if you don’t have a campus job or other income source, you may not be eligible for the card.
How to Earn Points & Rewards?
The Chase Freedom Student card has a pretty simple reward structure: You’ll earn 1 point per $1 or the equivalent of 1% cashback on every purchase. For example, if you spent $1000 on purchases, that means you’ll get $10 in cashback rewards.
This is very common in student cards. Many banks offer from 1.5% to 3% cashback rewards. But pay attention to all your transactions as these rewards are not applicable for all the transactions. Balance transfers, cash advances, or any cash-like transactions and lottery tickets, race track wagers are not qualified for the rewards or sometimes they charge unauthorized or fraudulent charges, and fees of any kind.
How to Redeem Rewards?
As we already told you that cardholders could redeem their rewards for cash at a 1 cent per point redemption rate. You can also redeem your points for other kinds of purchases, such as travel bookings, gift cards, merchandise, and even pay for transactions with your balance at select retailers, but you have to give up some rewards value.
For example, you can buy anything from Amazon, but instead of $1 each reward point will only be worth 0.8 cents. So if you spend $100 that will translate to pints worth just 80 cents at the Amazon checkout.
All the rewards are also dependent on your redemption method because, in some methods, the rewards are displayed as points instead of dollars:
- Cash, gift cards, and travel: Each point is worth 0.01 cents, so 100 points are equal to $1.
- Purchases through ChasePay: Each point is worth $0.008, so 100 points are equal to $0.80.
It may seem convenient to you to pay with ChasePay, but you’ll get less value for your rewards. So, to get the maximum value, try to redeem your cashback for gift cards, cash, or travel.
Another great thing about the Chase Freedom Student card is that you can transfer your points to another Chase card with Ultimate Rewards. But another Chase account should also belong to you or a member of your house.
How to Maximize the Freedom Student Card?
Here are some cool ways by which you can maximize rewards and points on your Chase Freedom Student Card:
- Make sure to use your student card to make the first purchase within the first three months of opening an account. This will qualify you for the $50 bonus.
- Use it to pay all your daily expenses such as groceries, utility bills, gas, and textbooks to earn 1% cashback.
According to the college board, on average, a regular student at a four-year university spends around $4,520 per year just on books, supplies, and transportation. So you’ll earn $45.20 in rewards at the 1% cashback rate on this $4520 expenses. You’ll also get $50 as a bonus after your first purchase, which makes a total of $95.20. Plus, if you pay all your payments on time, you’d also qualify for the $20 Good Standing Reward, giving you a total of $115.20 ($95.20+ $20) in rewards. So, always use these amounts even of small purchases to maximize cash backs and rewards.
- College students also get free delivery on any DoorDash order over $12 for three months. Besides that, students will also get a 50% discount on a DoorDash subscription for nine months.
- From the coming March 2022, students will get a 4% cashback on Lyft rides purchased via the Lyft mobile app, for a total of 5%. Which is excellent for college students as they spent about $20 per month on rides to campus. So if they pay via Lyft mobile app, they’ll get $24 in two years.
- Make sure to pay off your statement balance in full every month, so that interest doesn’t take away from your rewards and you’ll get all your rewards directly in your wallet.
- Also, avoid getting close to your credit limit to prevent overspending and damage to your credit.
Note: All these rewards and points are valid if you don’t buy something through Chase Pay.
The Chase Freedom Student card offers the following benefits or perks:
- Purchase Protection: All your new purchases will be covered for 20 days against damage or theft. You can claim up to $500 per claim and $50,000 per account.
- Extended Warranty Protection: You will get an additional warranty for an extended one year on the eligible purchases.
- Free Credit Score: You get unlimited access to check it, via Chase’s Credit Journey The Chase Freedom Student card also offers some great Security Features such as:
- Zero liability protection: If any unauthorized charges are made to your account, you’re not responsible.
- Fraud protection: It securely monitors your account to check whether there are no unusual transactions going on.
- Lock/Unlock: From Chase.com or Chase mobile app, you can easily lock and unlock your credit card account in case of an emergency.
Also Read: Low-Interest Credit Card
How to Apply for the Chase Freedom Student Credit Card?
Now, after reading all the advantages of the Chase Freedom Student Credit Card, you are probably thinking of applying. So let us tell you that the only way to do this is in-person registration, which means you have to go to the nearest Chase bank and give all the details to get registered.
College students over 18 studying in the United States’ Universities, who are eager to build a credit score and want to earn flexible rewards, The Chase Freedom Student Credit Card is great for them. Here you’ll get 1% cashback on your purchases and also a $50 sign up bonus for making your first purchase in the first three months.
But in the end, it totally depends on your requirements and convenience. If you’d like to apply, you can get more information on Chase’s Website.
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