@Anonymous wrote:
I'm curious if this card falls under the 5/24 rule though?
It's not clear, but I'm thinking it probably does.
I don't think a student who gets 5 new cards in 24 months is any less of a risk, in their view, than any other person who gets 5 new cards in 24 months. In fact, a student who has 5 new cards in the last 24 months is probably seen as more of a risk. I wouldn't be shocked if this card even has a 3/24 or even a 2/24 rule, although that's completely speculation on my part.
Total Loan Balance: $43k / $65k
Total SL: $78k
@pizza1 wrote:
@Anonymous wrote:
@pizza1 wrote:Here's the info on it....
https://www.doctorofcredit.com/chase-student-rewiew-50-bonus-20-annual-bonus/
Ah, so they did rip off credit steps like I thought!
@Anonymous , you mean they took it away? Im not understanding what you mean...I see the "credit steps" in their vocab.
Rip off as in "to copy or imitate blatantly". The auto CLI after 5 payments is essentially the same as Capital One Credit Steps.
Oops sorry OP’s DD.
Anyway as for the length of the SUB being spread out over 5 years, that’s about the same time period as college these days, seems reasonable and more driving towards the type of consumer behavior they (lenders) want anyway.
It actually isn’t that far off 5/24, which isn’t a risk assessment thing, it was an anti-churning mechanism.
Actually I am surprised this is the first time I have seen this in the credit market: in the employment space signing bonuses now are often stretched over two years and have been since 2017 I think.
People were churning employers too haha.
Anyway as for the length of the SUB being spread out over 5 years, that’s about the same time period as college these days, seems reasonable and more driving towards the type of consumer behavior they (lenders) want anyway.
It actually isn’t that far off 5/24, which isn’t a risk assessment thing, it was an anti-churning mechanism.
Actually I am surprised this is the first time I have seen this in the credit market: in the employment space signing bonuses now are often stretched over two years and have been since 2017 I think.
People were churning employers too haha.
@ChargedUp wrote:
As far as my 19 year old daughter that's getting ready to head off to college, she's already an AU on my CSP and BCE. She has a Cap One QS that's already grown from $500 ->$3500 in a little over a year. I may promote this with her as a viable 2nd card, with her going for her own Amex as a 3rd card to optimize her scores.... Or reverse and make Amex her 2nd card, wait 6 months and send her after a normal Freedom or Freedom Unlimited? Decisions, decisions... Her EX-08 is in the 760's
I'd love to know if their will be any special caveats about PC'ing the student card into another card in the UR family. I'm assuming over time, they would allow a PC, but how much time? Will the student cards be "bucketed" like Cap One tends to do?
Exactly my thoughts. I think this is a great card to start with for a "new" student with no cards of their own, and especially with no AU accounts to help them. But for those students that have a card or two with 6+ months of history, I believe it best to just wait the additional 6 months and app for the real thing versus this Student variant. As you mentioned, this student version may end up being in a "bucket".
My 18 yo and I have been looking for this Freedom Student card to appear on the Chase website all day, but nothing ever appeared. So, did a little deeper Google on it and ran across a Nerdwallet article that gives a bit more info on this card.
Article link here: https://www.nerdwallet.com/blog/credit-cards/chase-launches-student-credit-card/
Some important points from this article:
1) In BRANCH only
2) An opportunity to upgrade to the Chase Freedom® or Chase Freedom Unlimited® after graduation with a qualifying credit score.
My take on this:
Item 1). For a younger generation that relies on online and mobile usage, you are forcing them into a branch office? That's silly. I can understand the thought of this... while you have the student and possibly their parents in the branch office, sell them on other products such as checking and savings. But come on, this day and age and the demographic you are trying to reach out to... this is a bonehead mistake! I foresee that policy changing after a month or two of slow apps for this student card.
Item 2). Great move to make the regular F and FU available!
My 18 yo and I have decided it best to pass on this card and apply for an Amex instead as her 2nd card (to go with her Disco Chrome Student). She got a $2000 approval for the BCE along with a $200 SUB. Thanks for the attempt, Chase, but we will see you in 9 months to see if she can get a regular Chase FU to finish off her lineup.
Just out of curiosity, any idea if this new card is subjected to 5/24 yet ?
