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Chase has launched a brand-new card for those looking to apply for their first credit card and start building credit: the Chase Freedom Rise. Whether you're a student or are establishing credit later on in life, this credit builder card is for those with limited or no credit history. As of the card's launch, the Chase Freedom Rise℠ can only be obtained by physically going to a Chase branch and filling out an application there.
Here's what else you need to know about the card.
Chase Freedom Rise℠ launch
As a starter card, the Chase Freedom Rise℠ offers solid cash-back opportunities and rewards that can be hard to find in other credit builder cards. Unlike the Chase Freedom® Student card, the Freedom Rise card is open to students and non-students alike.
If you currently have a Chase checking account (such as *Chase Total Checking®) with a balance of $250 or more, you're more likely to get approved. If you don't currently have a checking account with Chase, open one and try to have the recommended balance before applying for the Freedom Rise card.
Welcome bonus
While this card doesn't offer a traditional welcome bonus, you can earn a $25 statement credit by signing up for automatic payments within the first three months of account opening. The statement credit can take up to eight weeks to appear on the account from the date all requirements are met.
Rewards
In addition to the statement credit bonus, cardholders earn 1.5% cash back — 0.5% more than the Freedom Student card — on all purchases, similar to what the Chase Freedom Unlimited® card offers (see rates and fees). And like the Freedom Unlimited card, the Freedom Rise card doesn't have an annual fee.
You can also earn rewards through Chase Travel℠ Program, where you also can redeem Ultimate Rewards® points for cash back, travel, gift cards and more.
Once you establish a credit history, you may decide to upgrade to one of Chase's premium credit cards like the Chase Sapphire Preferred® Card (see rates and fees) or Chase Sapphire Reserve® (see rates and fees). Both of these cards let you convert your cashback into transferrable Ultimate Rewards® points, which you can use to potentially receive more value from your rewards through Chase's travel partners.
Additional benefits
Other perks of the card include:
- A possible credit limit increase as soon as six months after opening the account, pending approval from the lender
- 24/7 monitoring for potentially fraudulent credit card purchases
Is the Chase Freedom Rise right for you?
Credit builder cards like the Freedom Rise aim to help those with limited or no credit history to access credit and improve their credit score. You need a good credit score to qualify for low interest rates on mortgages, credit cards, and more. While many credit cards tend to charge high interest rates, credit builder cards typically have lower interest rates and low (or non-existent) annual fees, making them an excellent option for those trying to rebuild their credit.
Other options
If the Chase Freedom Rise℠ card doesn't sound right, consider the Petal 1 "No Annual Fee" Visa Credit Card and the Petal 2 "Cash Back, No Fees" Visa Credit Card. Neither card requires you to have a credit history to apply, and both of them reward users with 2% to 10% cash back offers at participating merchants through the Petal Perks program. The Petal 2 also earns 1% cash back on eligible purchases and up to 1.5% on eligible purchases after making 12 on-time monthly payments.
The Discover it® Secured Credit Card also offers a decent welcome bonus and earns 2% back at gas stations and restaurants on up to $1,000 in combined purchases each quarter and 1% back on all other purchases.
If you already have a respectable credit score and are looking for a card that bridges the gap between credit builder and premium cards, the Chase Freedom Flex® and Chase Freedom Unlimited® are also great choices. The Freedom Unlimited offers a $200 Bonus after you spend $500 on purchases in your first 3 months from account opening.
Information about Discover cards has been collected independently by CNBC Select and has not been reviewed or provided by the issuer prior to publication.
The Chase Freedom Unlimited® is a no-annual-fee card that earns generous cash-back on everyday purchases and a lucrative welcome bonus.
- Users get a high rewards rate and strong welcome bonus
- Purchases and balance transfers get long intro APR
- No annual fee
- Travelers face a foreign transaction fee
- Few rewarding ongoing benefits
Highlights
Highlights shown here are provided by the issuer and have not been reviewed by CNBC Select's editorial staff.
- Earn a $200 Bonus after you spend $500 on purchases in your first 3 months from account opening
- Enjoy 5% cash back on travel purchased through Chase TravelSM, our premier rewards program that lets you redeem rewards for cash back, travel, gift cards and more; 3% cash back on drugstore purchases and dining at restaurants, including takeout and eligible delivery service, and 1.5% on all other purchases.
- No minimum to redeem for cash back. You can use points to redeem for cash through an account statement credit or an electronic deposit into an eligible Chase account located in the United States!
- Enjoy 0% Intro APR for 15 months from account opening on purchases and balance transfers, then a variable APR of 18.24% - 27.74%.
- No annual fee – You won't have to pay an annual fee for all the great features that come with your Freedom Unlimited® card
- Keep tabs on your credit health, Chase Credit Journey helps you monitor your credit with free access to your latest score, alerts, and more.
- Member FDIC
Balance transfer fee
Intro fee of either $5 or 3% of the amount of each transfer, whichever is greater, in the first 60 days. After that, either $5 or 5% of the amount of each transfer, whichever is greater.
Foreign transaction fee
3% of each transaction in U.S. dollars
The Chase Freedom Flex® is an excellent cash-back card for maximizing your spending in a variety of categories.
- Long intro APR for purchases and balance transfers
- Rewarding quarterly bonus categories
- No annual fee
- Bonus categories are capped each quarter
- Has a foreign transaction fee
Rewards
- 5% cash back on up to $1,500 in combined purchases in bonus categories each quarter you activate (then 1%)
- 5% cash back on travel booked through Chase Travel℠
- 3% on drugstore purchases and on dining (including takeout and eligible delivery services)
- 1% cash back on all other purchases
Balance transfer fee
Intro fee of either $5 or 3% of the amount of each transfer, whichever is greater, on transfers made within 60 days of account opening. After that, either $5 or 5% of the amount of each transfer, whichever is greater.
Foreign transaction fee
3%
Bottom line
While many credit builder card options do a great job of establishing your credit history, only some offer benefits that are as good as a typical credit card. The welcome bonus, cash-back and rewards program offered by the Freedom Rise elevate it above many other cards in its class and make it a good choice for users who want to raise their credit score while enjoying some benefits.
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Read more
For rates and fees of the Discover it® Secured Credit Card, click here.
Petal credit cards are issued by WebBank.
* Information about Chase Total Checking® has been collected independently by CNBC Select and has not been reviewed or provided by the issuer of the card prior to publication.
