Back in June, Chase announced it was releasing a card to allow students to build up their credit. But unlike many other credit cards, this one allows the cardholder to earn points that will transition into a longer-term points and miles strategy.
While the popular Discover student card earns cashback, that cashback can’t ever be turned into points. American Express, Citi and Capital One don’t have student cards that can turn into points or miles either.
Chase, though, is allowing students to have a card that acts similar to it’s non-student equivalent – the Chase Freedom card.
The Important Stuff
Earn $50 sign-up bonus (5,000 Chase Ultimate Rewards) after making a single purchase in the first three months.
No annual fee
1% back on all purchases
Cashback can be transferred to Ultimate Rewards
Cardholders will receive $20 every year on account anniversary for five years
For the first time, those without a credit history – students – have the ability to start earning Chase Ultimate Rewards.
The sign-up bonus isn’t great, but for someone who can’t earn Ultimate Rewards otherwise, at least it doesn’t require doing a number of things to reach minimum spend requirements. The card earns 1% on everything making it a straight forward card for starters, as well.
Each year, the cardholder will get a $20 bonus each year (equivalent to 2,000 Chase Ultimate Rewards points). The cardholder gets an automatic credit line increase if five payments are made on time within the first ten months. With that said, as we cover in our Beginner’s Guide, if you don’t plan on paying off your credit card in full each month, travel credit cards aren’t right for you.
We have an entire article on the Chase Trifecta. Pairing the Freedom Unlimited with the Sapphire Preferred or Sapphire Reserve. one of or both of the Freedom or Freedom Unlimited Card is even more powerful.
Because cardholders of the student card can automatically upgrade to the Freedom or Freedom Unlimited, this card is perfect in order to get started on obtaining the Chase Trifecta.
The Freedom (5x on quarterly rotating categories) and Freedom Unlimited (1.5x on every purchase) are both cash-back cards earning cashback instead of points. However, when a cardholder has the Sapphire Preferred card, the cashback credits can be transferred to become Ultimate Rewards.
Final Thoughts: Chase Freedom Student Credit Card
This is a game-changer for students wanting to start earning points and miles.