I receive compensation for content and many links on this blog. Citibank is an advertising partner of this site, as is American Express, Chase, Barclays and Capital One. Any opinions expressed in this post are my own, and have not been reviewed, approved, or endorsed by my advertising partners. I do not write about all credit cards that are available -- instead focusing on miles, points, and cash back (and currencies that can be converted into the same). Terms apply to the offers and benefits listed on this page.
Student credit card rewards usually aren’t very rich, but they can be helpful in building credit to eventually qualify for a rewards card. Many students do already qualify for premium cards. There are students being approved for those all the time. But many aren’t.
The Chase Freedom® Student credit card is a nice way to get started. It’s a no annual fee card which earns a $50 Bonus after first purchase made within the first 3 months from account opening and earns 1% cash back on all purchases.
There’s a kicker, because each account anniversary for up to 5 years it offers a $20 Good Standing Reward.
What I like about earning ‘cash back’ with a Chase Ultimate Rewards card is that Ultimate Rewards points are combinable across accounts. So I’d save up the points rather than spending them, and combine into a premium card later where the points being earned on this card become even more valuable (think using points at 1.5 cents apiece through ‘Pay Yourself Back’ with a Sapphire Reserve card, or transferring to airline miles).
There are even additional premium features to Chase Freedom® Student credit card like,
- DoorDash: complimentary 3 months of DoorDash DashPassoffering unlimited deliveries for a $0 delivery fee on eligible orders over $12 from DoorDash and Caviar (other fees apply). Then you get 50% off DashPass for the next 9 months (auto enrollment). Requires activation by December 31, 2021.
- Lyft: 5% back on Lyft rides through March 2022
- Coverages: purchase protection; extended warranty protection; trip cancellation/interruption coverage
A student card can be designed to facilitate approvals for a demographic without a significant credit history, but potentially higher income than one has today. It’s a niche product I wish we’d see more of that also offers rich rewards. I wish we’d see this too in ex-pat cards.
If Chase can get students into their ecosystem that may be even better than a late career-stage professional. They have less money today, but more years ahead of them as potential customers.
In fact, I’ve even been seeing ads for Chase accounts for 6 year olds when I log in at chase.com lately. It’s smart to extend the reach of family accounts (increases switching costs) and reach customers when they’re young (and beginning to form financial habits).
I’d use the Chase Freedom® Student credit card as a springboard to more. More rewards cards will let you do better, but they’re designed in many cases for those with more robust credit history. It’s good to see products that start the credit journey without making customers give up rewards entirely to do it.
CitiBusiness® / AAdvantage® Platinum Select® Mastercard® Earn 65,000 AAdvantage miles.