What are the benefits of the Chase Freedom student card?
The Chase Freedom Student card is one of the few student credit cards that offers cash back rewards, with an unlimited 1% cash back on all purchases.
While the 1% cash back rate may seem low, it's actually quite competitive for a student card with no annual fee.
The card's "Good Standing Reward" of $20 each year (for up to 5 years) is a unique perk not often seen on student credit cards, incentivizing responsible card management.
Chase will automatically review the account for a credit limit increase after just 5 on-time payments in the first 10 months, helping students build credit quickly.
Compared to other student cards, the Freedom Student has a relatively high minimum credit score requirement of 660, making it less accessible for students with very limited credit histories.
Unlike some student cards, the Freedom Student does not offer a sign-up bonus, which is a common feature on many rewards credit cards today.
The card's flat 1% earning rate means it lacks the bonus category earning opportunities found on some rival student cards, limiting its maximum rewards potential.
Chase uses a proprietary credit scoring model to evaluate applicants for the Freedom Student card, which may result in approval decisions that differ from traditional FICO scores.
While the card has no annual fee, it does charge a 3% foreign transaction fee, making it less ideal for students who plan to use it abroad.
The Freedom Student card is a Visa card, which is generally accepted more widely worldwide than the Mastercard network used by some competing student cards.
Chase provides account holders with free access to their VantageScore 3.0 credit score, allowing students to monitor their credit building progress.
Unlike some other student cards, the Freedom Student does not offer any special perks or discounts for college-related purchases like textbooks or school supplies.
The card's 1% cash back rate matches the industry standard for basic cash back cards, meaning the Freedom Student doesn't necessarily excel in the rewards department.
Chase has discontinued offering the Freedom Student card to new applicants, instead focusing on its Slate and Sapphire student card products going forward.
While the Freedom Student card lacks some of the more robust features of premium student cards, its simplicity and lack of annual fee make it a solid starter card for credit newbies.
Chase periodically reviews accounts and may graduate Freedom Student cardholders to the standard Chase Freedom card after they establish a strong credit history.
The Freedom Student card utilizes Chase's Ultimate Rewards program, allowing cardholders to potentially combine their rewards with other Chase cards in the future.
Unlike some student cards that require a co-signer, the Freedom Student can be approved based solely on the applicant's own credit profile and income.
While the 1% cash back rate may seem low, studies show the average college student spends around $2,000 per month, potentially earning $240 in annual cash back.
The Freedom Student card's automatic credit limit increase feature can help students avoid the common trap of maxing out their initial credit limit and damaging their credit utilization ratio.