Chase Freedom Student Card Review: Solid Pick for First-Time Cardholders

This credit card is a good fit for: Students looking for a first credit card with rewards and no annual fee.

Top perks

The Chase Freedom® Student credit card has a lot going for it, especially for a first card.

Unlimited 1% cash back

One of the top perks of using a credit card for your purchases is the ability to earn rewards. The Chase Freedom® Student credit card earns an unlimited 1% cash back on purchases, with no categories to track or activate. This means you'll earn the same rate on things, from textbooks to late night pizza runs.

Additionally, you won't need to reach an arbitrary minimum rewards amount to redeem your cash back. Any rewards you don't redeem will last forever, as rewards never expire as long as your account remains open.

Read more: Best Cash Back Credit Cards

No annual fee

While some rewards credit cards charge big annual fees, the Chase Freedom® Student credit card isn't one of them. This means you won't need to pay an annual fee each year just for hanging onto your card.

Plus, no annual fees means you can keep the account open after you graduate without worrying about it costing you money. The age of your credit accounts is one of the five factors that go into your credit scores, so it can be good for your credit to keep your student credit card even if you move on to better cards.

See more options: Best No Annual Fee Credit Cards

Modest sign-up and anniversary bonuses

Credit card sign-up bonuses are lump-sum rewards that you can earn just for using your card. The Chase Freedom® Student credit card, for instance, offers new cardholders a $50 bonus when they make their first purchase (must be made within the first three months of card opening).

This is a modest bonus compared to some options. But the Chase Freedom® Student credit card has no spending requirement, which makes the bonus a breeze to earn. Cardholders can also earn an additional $20 in bonus rewards each year on their anniversary so long as their account remains in good standing.

Credit limit increase after five on-time payments

The credit limit on your credit card tells you how much you can charge with your card. Since most students have limited (or no) credit history, starting credit limits are generally low. But the Chase Freedom® Student credit card offers cardholders a way to boost their spending power when they use their card responsibly.

Specifically, you can get a credit limit increase with your Chase Freedom® Student credit card when you make five on-time monthly payments within the first 10 months. Now, this doesn't mean you can just not use your card; you'll need to actually make a purchase and pay off your balance for it to count as a payment.

What could be improved

The Chase Freedom® Student credit card has a lot of perks, but there are some drawbacks to consider.

Modest cash back rewards rate

While it's nice that the Chase Freedom® Student credit card earns cash back rewards on purchases, that 1% cash back rate doesn't stack up to some other options. In fact, in the student credit card world, 1% back is table stakes among the best offers.

Foreign transaction fees

Studying abroad is a long-standing college tradition -- just don't take your Chase Freedom® Student credit card with you. Credit card purchases made in a non-U.S. currency are considered foreign transactions, and the Chase Freedom® Student credit card charges a 3% foreign transaction fee.

Because of this fee, purchases you make in a foreign currency will come with an added surcharge of 3% of the total transaction on top of the purchase amount. It may not seem like a lot on a few small purchases, but the fee can add up fast over the course of a semester abroad.

The Chase Freedom® Student credit card is designed for college students, many of whom will be first-time credit card users. As such, you can qualify for the Chase Freedom® Student credit card even if you have no credit history. Since it takes at least six months of credit history to get a FICO® credit score, you won't need a credit score to qualify, either.

One thing to note is that, by law, credit card issuers must be reasonably sure you can make your credit card payments before they approve your application. You'll be asked about your income on the application. Don't lie. Student credit cards have low credit limits, so you won't need a sky-high income to qualify -- but lying about it will definitely get you a rejection letter.

Read more: Best Starter Credit Cards for No Credit

The Chase Freedom® Student credit card is a great way to start building credit. Users can enjoy unlimited cash back rewards while paying no annual fee. What's more, you'll see solid bonuses both as a new cardholder and on every anniversary.

At the same time, other student cards offer better rewards as well as better bonuses. So, while the Chase Freedom® Student credit card is a solid starter card, it's worth taking a look at your other options before committing.

Keep reading: How to Get Your First Credit Card

Our credit card methodology

At The Motley Fool Ascent, we rate credit cards on a five-star scale (1 = poor, 5 = best). Our rating criteria includes rewards rates, welcome bonuses, fees, and perks like travel credits and 0% intro APR offers to evaluate our ratings.

We combine these factors with an evaluation of brand reputation and customer satisfaction to ensure you're getting the best card recommendations. Learn more about how The Ascent rates credit cards.