Chase UK has launched its first ever credit card, as it broadens its product range for UK customers.
The digital bank is already popular for its current account that offers cashback, plus competitive savings accounts. Earlier this month, Chase introduced a bonus offer, giving new customers the opportunity to earn 5% interest on easy access savings for up to one year.
However, the bank caused an upset in April when it overhauled its cashback deal, meaning current account customers can only earn 1% cashback in certain places, and it’s restricted to purchases made in the UK. Previously, cashback was paid on any spending in the UK or worldwide.
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It has now unveiled a credit card for all Chase customers, after quietly testing it with more than 25,000 existing Chase customers invited to use the card since November, following a pilot with the bank's employees.
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Last month, MoneyWeek exclusively revealed that the credit card would be rolled out to all customers in June.
Mark Powys, managing director for daily banking and borrowing at Chase, comments: "Designed specifically to meet the borrowing needs of our customers, the Chase credit card offers a seamless digital experience and a range of features to help people effortlessly manage their money.”
He adds that the card “could be a great option for using when travelling abroad, especially as people get ready for the summer holidays”.
Customers will be able to apply for the card in the Chase app, and also see their credit score for free.
So, let’s delve into the details and see if the credit card could be a good option for Chase customers.
Chase's new credit card for the UK market
This is the first credit card for the UK market from JP Morgan-backed digital bank Chase. Previously, it only offered a current account and a savings account, plus you can also invest with Nutmeg, part of the JPMorgan family, via the Chase app.
You need to be an existing Chase customer to apply for the card. The credit card includes 0% interest on purchases for up to 15 months, and no annual fees. The APR is 24.9%.
There are also no foreign exchange fees, and competitive exchange rates worldwide.
Customers can check their eligibility, apply, start using, and manage the card through the digital banking app.
App features include real-time balance updates, instant notifications on purchases, and tools such as the ability to instantly freeze and unfreeze their physical and virtual card, turn on and off certain spending features (such as contactless), and spend tracking.
Like Chase's debit card, the credit card is numberless – card details are stored in the app so only the customer has access to them.
In addition to the new credit card, Chase customers can see their credit score, for free, inside the app. According to the bank, this is designed to allow users to view, monitor and see how they can improve their credit score.
Is the Chase credit card any good?
The Chase credit card could be a good option if you’re planning to travel abroad, as there are no fees on spending overseas.
However, there are other credit cards that already offer this, such as Barclaycard Rewards Visa Credit Card, MBNA Cashback Visa Credit Card and Virgin Money Everyday Cashback Mastercard Credit Card.
This trio also pays cashback to customers on most UK and overseas spending, which the Chase credit card doesn’t do.
So, if you’re looking for a no-fee travel credit card that rewards you with some cashback – perhaps because you’re planning to spend a lot of money abroad – there are better options than the Chase card.
The interest-free purchases for up to 15 months is an attractive feature, especially for those wanting to buy expensive items and spread the cost of paying it off.
Again, there are cards offering a better deal, for example some credit cards offer 0% purchases for up to 20, or even 25, months.
If you’re already a Chase customer and you’re looking for a good all-rounder credit card that will give you a period of interest-free spending, plus no fees when you go on holiday, this card looks like a good option.
This is especially the case if you like to manage your money in an app, and find it easier to have financial products, like your current account and credit card, with the same provider.
How do I apply for the Chase credit card?
You need to be 18 or over, a UK resident, and have a Chase current account to apply for the credit card.
You can check your eligibility and apply via the app.
Customers who are approved for the credit card can start using it immediately via their digital wallet without needing to wait for the physical card to arrive.
Will Chase launch more products?
In the US, Chase has a range of credit cards for customers to choose from, including a popular “Sapphire” card. For a $95 annual fee, customers can get “premium dining & travel rewards”. For example, if they earn 60,000 points, that’s worth $750 towards travel when redeemed through Chase Travel.
Chase is understood to be planning more product launches in the third quarter of this year, which will expand its proposition. However, there are no plans to bring the Sapphire card to the UK’s shores in 2025.
Chase has more than two million UK customers, all of whom have a current account with the bank.
