A rewards card that doesn't reward you for spending? Yep. Instead, this card rewards you for good credit behavior as well as your activity on Facebook.
Who the Chase +1 Student MasterCard Is For
- College students who are members of Facebook.
Credit Rating Required
- Fair and up (660+).
About the Chase +1 Student MasterCard
Pros
- No annual fee.
- Rewards for good credit behavior and Facebook activities.
Cons
- Rewards program is way too complicated.
- No rewards tied to card usage.
- Relatively high APRs.
Rewards
- Earn "Karma Points" with Facebook.
- Points redeemable at Chase +1 store.
APRs
- 17.24 to 21.24 percent, based on your creditworthiness.
- Penalty APR: 29.99.
Fees
- Late payment fee: $15 to $39.
- Return payment/check fee: $39.
- Over-the-limit fee: none.
- Balance transfer fee: four percent of balance.
Chase +1 Student MasterCard Review
Chase certainly has a unique idea here: A rewards credit card where you don't earn rewards on card spending. Instead, you earn points for good credit behavior and getting your Facebook friends to sign up, too.
I'm not sure how attractive that will be to a lot of people. There's a huge disconnect between having the card and the points you can earn - there's really no connection. It's also pretty complicated.
Actually, the main idea behind this card seems to be a new way for Chase to network with a customer niche and get cardholders to help it find more customers.
For starters, you must be a member of Facebook to earn the points, which Chase calls "Karma" points. Each point is worth approximately $1 in retail value for merchandise at the Chase +1 store. You can redeem the points in the Chase +1 store, share them with your Facebook Friends, or donate them to charity.
After you activate the card - which you do on Facebook - you earn 20 points after you make your first purchase with the card. After that, however, you don't earn any more points for card spending. Instead, you earn points for other things, such as two points for every month you pay your bill on time, and eight points if you pay your bill on time six months in a row.
You also earn one point for joining the Chase +1 group on Facebook, five points for taking Chase's Credit Essentials course, five points for referring a Facebook Friend to Chase, and 10 points if you use your Chase card to make three purchases in the Chase +1 store.
Recommendation
The idea of a rewards credit card that doesn't reward you for spending is certainly unique. But it might be just a bit too complicated for most people to figure out.