I’ve had my Discover student card for almost a year with a score of 744 and I’ve never missed a payment, so I feel ready to get a beginner card. The main ones I keep seeing during my research are Chase Freedom Flex and Chase Freedom Unlimited. What are your experiences with these cards? Is one better than the other? Or can you suggest any other beginner cards I should look into?
UPDATE- forgot the template but here it is
CREDIT PROFILE
Current credit cards held: Discover Student (May 2024)
FICO Score: 774
Oldest credit card account age: May 2024
Annual income: Approximately 14-15k from a part-time student job
CATEGORIES
Open to category-specific cards: yes
Open to rotating category cards: yes
Estimate average monthly spend:
Dining: $100-150
Groceries: $300
Gas: $0
Travel: $0
Other categories: roughly $100 in miscellaneous or school fees.
Any significant, regular spending not included above: tuition paid from a high-yield savings account
Can you pay rent by credit card? Yes, there’s about a $3.00 convenience fee.
MEMBERSHIPS & SUBSCRIPTIONS
Member of Amazon Prime: Yes, as a student, it’s $6.99 a month
Subscriptions: $2.99 for Apple, $6.99 for Hulu/Spotify
PURPOSE
I want to grow my credit history and maybe find better rewards or travel benefits.
Chase is a great place to start because they have a 5/24 rule which means that if you open 5 cards in the last 24 months, your application gets denied. The Freedom Unlimited is a good all-around card since you earn 1.5% back on everything, 3% on dining, 3% on drugstore purchases, and 5% back on travel. Be ready to spend $500 in the first 3 months to get the $200 welcome bonus. The Flex is also a solid option but doesn’t give the 1.5% back on all spending. Instead, you earn 5% back on up to $1500 in their rotating categories every quarter, which you have to activate in the app. Either choice is a good starting point, just make sure you have $500 planned spending in the next 3 months to grab the welcome bonus. You could also apply in person as sometimes they have better in-branch offers or you can use a friend’s referral link to get them a bonus.
MrGoodman said: @Noble
I’m leaning towards the Unlimited right now. I’ll do some more research, but I might ask for your referral link later!
That’s what I chose. I might get the Flex next year between other credit card applications. I enjoy watching Daniel Braun and Spencer Johnson on YouTube for their credit card content; they make great videos.
@Noble
I’m starting to question some common knowledge here. For most casual credit card users, 2 or 3 new cards a year is plenty. You can always choose a Chase card later if you’re not planning on churning cards. I’d rather begin by optimizing rewards since Chase lacks a 2% catch-all card and a grocery category.
@Dexter
That’s true. The Capital Duo is good if you want something hands-off. Even the Citi Trifecta is an option, but their customer service isn’t great.
If you’re just starting out, cash back cards are simple and effective. A 2% cash back card is excellent. Reward and travel cards can offer more value and opportunities, but their rewards usually come from mid to high-end travel perks. Just make sure to pay off your balance every month and it won’t matter much which card you choose.
The Discover Student card is indeed a beginner card. Chase is good to transition to after a year with the Discover Student card. Think about what you want out of the card. Compare the benefits they offer to your usual spending habits to find the best fit for you. There’s a lot of hype around Chase at the start of your credit experience, but you don’t have to go that route if other cards may suit you better.
Simple cash back: Look for a 2% cash back card like the Wells Fargo Active Cash or similar and make it easy.
Capital One Savor (previously Savor One): It offers 3% on groceries, entertainment, and streaming, which is great for a student.
If you spend a lot in a specific category, consider the Citi Custom Cash card.
Chase UR entry: Freedom/Flex/Unlimited options. If you choose these, don’t redeem your points for cash back; hold onto them until you can get a CSP or CSR later for better travel benefits. This choice lets you accumulate UR points for future travel.
The WF Attune is a solid option, but I’m not sure what their base requirements are.
There isn’t a good entry-level Amex card for MR points, and the Amex BCE really only makes sense for someone who spends heavily on groceries, so I wouldn’t recommend going that route.
As for Flex versus Unlimited, the CFU often makes more sense if you don’t spend heavily in specific categories.