The Chase Slate Edge credit card was launched on Monday, offering variable interest rates and higher credit limits for cardholders who meet spending and bill payment criteria.
Card Features
This no-annual-fee card rewards responsible credit card usage with an annual percentage rate (APR) reduction and an automatic increase in credit limit once. Both features can help cardholders improve their credit scores.
Annual Percentage Rate Reduction
The annual percentage rate reduction feature is one of the most interesting. Here’s how it works: if you pay your bill on time every month and spend at least $1,000 in a year on the card, you qualify for a 2% annual percentage rate reduction each year, down to a minimum APR of 9.74% plus the prime rate. Currently, the prime rate is 3.25%, translating to a minimum APR of 12.99% on the card. This rate is significantly lower than the general credit card interest rate of 20.26% available in a database of over 310 cards. While 12.99% is on the lower end, there are other cards available with even lower rates – some of which offer rewards and other perks.
Automatic Credit Limit Increase
Slate Edge offers an automatic credit limit increase. If you spend at least $500 in the first six months after opening the account and make all your payments on time, Chase will automatically consider increasing your credit limit. However, this automatic increase is not an annual reset like the annual percentage rate reductions.
Additional Features
Additionally, the Slate Edge card allows cardholders access to Chase’s loan repayment feature similar to installments, and the Chase Credit Journey credit monitoring tool (available to anyone, whether you have an account with Chase or not).
In addition to those credit improvement features, the card also offers a modest bonus for new cardholders and a one-year introductory interest rate of 0%. If you spend at least $500 in the first six months, you’ll receive a $100 statement credit. The 0% interest period of 12 months covers both purchases and balance transfers – although you’ll incur a 3% fee on any amounts transferred in the first 60 days; afterward, you’ll pay 5%.
Conclusion
Although marketed as a credit-building card, the Chase Slate Edge adds a basic, straightforward option to the bank’s existing lineup of many rewards cards. It aims to attract individuals whose credit scores may have been severely affected by the pandemic. According to a recent Chase Slate survey, 81% of people are still interested in trying to improve their credit despite the impact the pandemic has had on their finances.
Sources:
– The Balance
– Board of Governors of the Federal Reserve
Source: https://www.thebalancemoney.com/chase-debuts-slate-edge-card-aimed-at-credit-builders-5193496
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