Chase Freedom Rise: As Good As A Credit-Builder Card Gets

No credit history required

The Chase Freedom Rise® is a true credit-builder credit card; you don't need an existing credit profile to qualify. Although it's an unsecured card and thus doesn't require an upfront deposit as collateral, applicants can increase their chances of approval by having or opening a Chase checking or savings account with a minimum balance of $250 within two days of applying. There is no minimum deposit balance required once approved, according to Chase.

You can qualify for a credit line increase in as little as six months by using your card responsibly and making on-time payments. That larger credit limit can, in turn, help your credit by lowering your credit utilization ratio.

While applications are available online, Chase is encouraging potential applicants to apply in a branch so they can speak to a banker and learn about educational tools that can help their credit and financial well-being.

It’s relatively light on fees

Credit-builder cards are sometimes loaded with exorbitant fees, but not the Chase Freedom Rise®.

Aside from not requiring a security deposit, the card charges no recurring annual, monthly or administrative fees. That means you can start working on your credit without worrying about the impact on your wallet.

However, note that the card does charge certain standard one-time fees for specific transactions: paying late, making a purchase internationally, or initiating a balance transfer or cash advance, for example. And, of course, you'll want to pay off your balance in full each month to avoid interest charges.

Earn a competitive cash-back rate

The Chase Freedom Rise® fits the bill if you're hoping to earn rewards while building your credit profile. It offers an uncapped, no-fuss 1.5% cash back on all purchases.

Among cards for those just starting out, that's quite good, and it can help put some money back in your pocket while establishing credit.

» MORE: NerdWallet's best cash-back credit cards

It offers the potential for an upgrade

The Chase Freedom Rise® is part of the broader Chase Freedom family of credit cards. As a cardholder, your account will be automatically reviewed on your annual anniversary to see if you're eligible to upgrade to the Chase Freedom Unlimited® card. No credit check is required under this process. The account must be open and active to qualify, meaning you must have made a purchase with the card in the last 12 months. During that same window, payments to all creditors must also have been made on time. Other terms apply.

The Chase Freedom Unlimited® offers the chance to earn more rewards. It earns 5% cash back on travel booked through Chase, 3% cash back at restaurants and on drugstore purchases, and 1.5% cash back on everything else.

» MORE: What is a credit card product change and how does it work?

You can earn a bonus for automatic payments

New cardholders can earn a $25 statement credit when they enroll in automatic payments within the first three months of account opening. This is similar to an introductory welcome offer, which many credit-builder cards don't offer.

While it's not a huge amount, this benefit helps distinguish the Chase Freedom Rise® from competitors.

You may need to consider opening a Chase bank account

According to Chase, applicants will have higher approval odds by pairing the Chase Freedom Rise® with a Chase checking or savings account and having at least $250 on deposit. Once approved, there is no minimum required deposit to keep in the account.

For qualified applicants, having access to that $250 gives the Chase Freedom Rise® an edge over secured credit cards, which typically require a deposit but don't let you actively withdraw that cash deposit while using the card. Still, if you're not interested in the possibility of banking with Chase, or if $250 seems too high of a bar, you could instead consider a card like the $0-annual-fee Capital One Platinum Secured Credit Card. It doesn't earn rewards and will require a security deposit — but you may qualify for a $200 credit line with an initial deposit of $49, $99 or $200, depending on your creditworthiness. You can also pay the deposit in installments (of at least $20), as long as you fund it in full within 35 days of approval. And you can do so via any eligible bank account; it doesn't have to be funded with a Capital One account.

You won’t want to carry a balance

As with most starter credit cards, the Chase Freedom Rise® doesn't feature any kind of 0% intro APR offer. The ongoing APR is 26.24% Variable APR%. That means interest payments may be tough to get ahead of if you carry a balance. Cardholders growing their credit profile should aim to use the Chase Freedom Rise® as an opportunity to build discipline in paying the statement balance each month to avoid those lofty interest payments. If you know you're likely to carry a balance, you may want to consider a credit union credit card. You'll likely have to take some steps to join the credit union before you can apply for any of its products, but ongoing APRs on credit union credit cards tend to be lower than those from larger banks.

It’s for building credit, not rebuilding it

While the Chase Freedom Rise® is a great card for building credit, you’ll likely need to look elsewhere if you’re trying to rebuild your credit. If, instead of no credit, what you have is poor credit (FICO scores of 629 or lower), consider a secured card like the $0-annual-fee Discover it® Secured Credit Card. There's a minimum security deposit of $200, but it earns rewards: 2% cash back at gas stations and restaurants on up to $1,000 in combined purchases each quarter. All other purchases earn 1%. There's also a unique bonus offer, which Discover phrases this way: "INTRO OFFER: Unlimited Cashback Match – only from Discover. Discover will automatically match all the cash back you’ve earned at the end of your first year! There’s no minimum spending or maximum rewards. Just a dollar-for-dollar match." Plus, Discover automatically reviews your account after seven months to determine whether you're ready to upgrade to an unsecured Discover card and get your deposit back.