Why the Chase Freedom Limitless needs to be the primary card in each pupil’s pockets

Editorial Team June 2, 2024

0 7 minutes read

Why the Chase Freedom Limitless needs to be the primary card in each pupil’s pockets

Faculty college students are at a giant drawback in the case of racking up factors and miles since most have restricted earnings and little to no credit score historical past. This makes among the finest factors and miles playing cards simply out of their attain.

The Chase Freedom Limitless® resolves this dilemma whereas nonetheless offering outsized advantages to these with restricted credit score historical past. Learn on to see why it needs to be the primary card on each faculty pupil’s record.

Associated: Getting began with factors, miles and bank cards to journey

No annual charge to fret about

Since most faculty college students do not earn so much, playing cards with annual charges are sometimes out of attain. The Freedom Limitless has no annual charge. Which means extra cash in your pocket to spend on meals and actions whereas touring. However there is a long-term profit to this as properly: You may preserve this card open without end with out worrying about an annual charge, and increase your credit score rating on the identical time.

Because the size of your credit score historical past determines 15% of your credit score rating, you’ll be able to preserve your no-annual-fee card open for a very long time and see a lift in your credit score rating.

Earlier than you apply to your first bank card, it is essential to know what your credit score rating is and to totally perceive the elements that affect it. In the event you miss funds or spend cash you do not have simply to earn factors, it is going to find yourself costing you in each the quick time period and long run — and you will find yourself paying far more than any worth you get in rewards.

Associated: Learn how to examine your credit score rating without cost

It is comparatively simple to get accredited

As a result of the Freedom Limitless has a average sign-up bonus- earn an additional 1.5% on every thing you purchase (on as much as $20,000 spent within the first 12 months, price as much as $300 money again) – and fewer perks than a few of Chase’s extra premium options, it is usually one of many simpler entry-level playing cards to get accredited for.

Constructing credit score is like chutes and ladders; a couple of approvals can increase your rating rapidly, however a rejection early on can set you again within the quick time period. It helps to be conservative within the early levels and apply for playing cards you are extra prone to get accredited for. Keep in mind to permit no less than a couple of months to go between bank card purposes; making use of for too many playing cards too rapidly can elevate a pink flag for issuers.

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Associated: What credit score rating do you might want to get the Chase Freedom playing cards?

Construct credit score and set up a very good relationship with the issuer

It takes years of constant funds and accountable spending to construct up your credit score rating, nevertheless it helps to make some mates alongside the way in which. In the event you’re new to credit score and also you present Chase (or any credit score issuer) that you could be accountable with the primary card it provides you — make all of your funds on time, preserve a low balance-to-limit ratio, and so on. — it is going to be more likely to approve you for different priceless playing cards down the road.

Having good credit score and a very good relationship with an issuer is not simply good for getting accredited for brand new playing cards. It may additionally assist increase your credit score restrict. Your first bank card will seemingly have a low credit score restrict, with the precise restrict relying on elements corresponding to earnings and credit score rating. In the event you’re accountable with the cardboard and use it often, the issuer will discover this and be extra inclined to lift your credit score restrict.

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Helpful bonus classes

Freedom Limitless cardholders will earn 5% money again on journey bought by way of Chase Journey℠, 3% on eating — together with takeout — and drugstores, and 1.5% on all different purchases. Many faculty college students spend some huge cash on eating each month, so having a card that earns 3% again on eating is a large plus.

If you might want to purchase on a regular basis provides to your dorm room, like dish cleaning soap or toiletries, attempt to make these purchases at a drugstore to earn further rewards. There’s often no less than one drugstore close to a school campus, so doing this needs to be pretty simple. Even when it’s a must to use this card at an everyday grocery retailer, you will nonetheless earn 1.5% again.

Associated: How to decide on a cash-back bank card

A priceless welcome bonus for a no-annual-fee card

Lots of the finest bank cards available on the market have minimal spending necessities of $3,000 to $5,000 within the first three months, however how are you supposed to try this for those who do not even have that a lot cash within the financial institution? Luckily, the Freedom Limitless is far more manageable, because it comes with an additional 1.5% on every thing you purchase (on as much as $20,000 spent within the first 12 months, price as much as $300 money again) for brand new candidates.

In case your earnings scenario improves and you have demonstrated accountable bank card habits over a time period, you’ll be able to contemplate including a card that earns Chase Final Rewards factors, such because the Chase Sapphire Most popular® Card. With a extra premium card just like the Chase Sapphire Most popular, you’ll be able to convert the money again in your Freedom Limitless into Final Rewards factors. You may then switch the factors to 14 airline and lodge journey companions or redeem them by way of Chase Journey.

Associated: Methods to satisfy minimal spending necessities

Superb long-term incomes potential

After you open your Freedom Limitless, you will be one step nearer to possessing the “Chase Trifecta” of bank cards. Here is the way it breaks down:

Chase Freedom Limitless: 5% money again on journey booked by way of Chase Journey℠, 3% money again on eating and drugstores, and 1.5% money again on each different buy.
Chase Sapphire Reserve®: The Reserve earns 5 factors per greenback on Chase Journey purchases and Lyft rides (by way of March 2025), 3 factors on eating, and a couple of factors on all different journey. The Reserve has a excessive annual charge of $550 however has loads of premium journey advantages. To be taught extra, learn our full assessment of the Chase Sapphire Reserve.
Ink Enterprise Most popular® Credit score Card: This card affords 3 factors per greenback on journey, transport, web, cable, cellphone companies and promoting purchases made with social media websites and search engines like google (as much as $150,000 in mixed spending every account anniversary 12 months). It won’t make sense if you’re a school pupil, nevertheless it may grow to be a helpful card down the road for those who determine to start out your personal enterprise. To be taught extra, learn our full assessment of the Ink Enterprise Most popular.

Keep in mind: Whereas the Freedom Limitless has robust incomes potential by itself, it is technically only a cash-back card. To unlock Final Rewards candy spot redemptions, you might want to pair it with a premium UR-earning card just like the Sapphire Most popular or Reserve. Get forward of your post-graduation journey plans by starting your rewards incomes now with the Freedom Limitless, in order that you have already got a pool of rewards prepared if you open a higher-tier Chase card.

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Chase Utility restrictions

Whenever you first begin amassing factors and miles, you are sure to be overwhelmed by a bunch of jargon. Abbreviations corresponding to URs and MRs (Chase Final Rewards factors and American Specific Membership Rewards factors, respectively) are generally used amongst factors and miles fans and might be fairly complicated for these beginning off.

You may and will be taught as you go, nevertheless it helps to concentrate on one factor from the beginning when making use of for Chase playing cards: the issuer’s notorious 5/24 rule. Merely put, Chase will robotically reject you for many of its bank cards for those who’ve opened 5 or extra bank cards within the final 24 months (throughout all issuers). Which means that you usually wish to begin by filling up your 5 “slots” with Chase earlier than transferring on, and the Freedom Limitless is an effective way to start out.

Associated: The perfect methods to make use of your Chase 5/24 slots