A new credit card aimed at the younger population was just announced: the Chase Freedom Student Visa Signature Card.
It provides a basic introduction to credit cards. But like other credit products, it might not be for everyone.
Let’s take a quick look.
Chase Freedom Student Card
The Chase Freedom Student Visa Signature Card has no annual fee (yay!) and offers a simple, easy-to-achieve welcome offer: receive a $50 bonus after the cardholder makes their first purchase with it within three months of being approved.
There are no bonus categories. Each dollar spent earns 1% cashback (kinda meh but better than a kick to the head).
Plus, the card’s “Good Standing Rewards” benefit gives cardholders a $20 reward after each account anniversary (for up to 5 years).
So far, so OK, right?
Here’s the part that makes me a little nervous.
Cardholders earn a credit limit increase after making five (5) monthly payments on time within ten (10) months from opening their card’s account.
I’m thinking that if you want to reward someone with something — in this instance, a credit limit increase — they should have to pay in full and on time every month. Call me crazy.
I understand banks make money from charging interest, late fees, and miscellaneous fees. But I don’t know that this card is everyone. People who aren’t sure if they’re going to make payments on time are better off using a debit card or cash. Or if they want to start building credit and seeing if they’re comfortable with credit cards, a secured card might not be a bad option.
Granted, every person is different with their credit card usage and responsibility. I (admittedly) learned the hard way.
For people who can be trusted and genuinely have the ways and means to pay off their statement each month, then the Chase Freedom Student Visa Signature Card could be a good product. (Or they could get another cashback card with better rewards.)
Featured image: Model photo ©iStock.com/Paffy69 (no endorsement implied), Rene’s Points Composite.
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