The Chase Freedom Rise stands out among credit cards designed for people building credit. The newest member of the Chase Freedom portfolio of credit cards offers holders an uncapped 1.5% cash back while avoiding the excessive recurring fees that plague other credit-builder cards. Applicants can also earn a small bonus for setting up automatic payments. That makes the card cheaper and more rewarding than most of its counterparts.
Here are five things to know about the Chase Freedom Rise.
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1. No credit history is required
The Chase Freedom Rise is a true credit-builder credit card; you don’t need an existing credit profile to qualify. Although it’s an unsecured card and doesn’t require a security deposit, applicants can increase their chances of approval by having or opening a Chase checking account with a minimum balance of $250 within two days of applying. There is no minimum deposit balance required once approved, according to Chase.
You can qualify for a credit line increase in as few as six months by using your card responsibly and making on-time payments. That larger credit limit can, in turn, help your credit score by lowering your credit utilization ratio.
While applications are available online, Chase is encouraging potential applicants to apply in a branch so they can speak to a banker and learn about educational tools that can help build their credit and financial well-being.
2. It’s relatively light on fees
Credit-builder cards are sometimes loaded with exorbitant fees, but not the Chase Freedom Rise.
There are no recurring annual, monthly, or administrative fees or a required security deposit. That means you can start building credit without worrying about the impact on your wallet.
However, note that the card does charge certain standard one-time fees for specific transactions: paying late, making a purchase internationally, or initiating a balance transfer or cash advance, for example. And, of course, you’ll want to pay off your balance in full each month to avoid interest charges.
3. It offers a competitive cash-back rate
The Chase Freedom Rise fits the bill if you’re hoping to earn rewards while building your credit profile. It offers an uncapped, no-fuss 1.5% cash back on all purchases.
Among cards for those just starting out, that’s quite good, and it can help put some money back in your pocket while establishing credit.
🤓Nerdy Tip
Though it’s touted as a cash-back card, rewards earned come in the form of Chase Ultimate Rewards® points. Points are worth 1 cent each when redeemed as cash back.
4. It has potential upgrade options
The Chase Freedom Rise is part of the broader Chase Freedom family of credit cards. That means once you’ve bolstered your credit with the Rise card, you may have an eventual pathway to upgrade to a different Chase Freedom card with rewards or features that better fit your spending habits.
Upgrading your card won’t require a hard inquiry on your credit report. You’ll also keep the same account number, so your average age of accounts will keep increasing. This is important, as hard inquiries and average account age are two factors in calculating your credit scores. (Keeping the same account number also means you avoid the hassle of having to update that number in places you’ve stored it for autopayments.)
5. You can earn a bonus for automatic payments
New cardholders can earn a $25 statement credit when they enroll in automatic payments within the first three months of account opening. This is similar to an introductory welcome offer, which many credit-builder cards don’t offer.
While $25 is not a huge amount, this benefit helps set the Chase Freedom Rise apart from competitors.