Home Money Chase Bank Offers First Credit Card to Select Customers

Chase Bank Offers First Credit Card to Select Customers

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Give credit: JP Morgan-backed Chase to roll out new card to existing customers first
  • The digital bank card will initially be available for 25,000 customers

Popular digital bank Chase has launched its first credit card, which will be distributed to some of its customers starting today.

The new credit card will be available to a small group of 25,000 existing Chase customers after a trial period with bank employees.

It will be available to a broader group of existing Chase customers in the coming months, the bank said.

This is the first credit card from JP Morgan-backed digital bank Chase and its first foray into the lending space.

The card will come with 0 percent interest on purchases, no currency exchange fees, and no annual fee.

The 0 percent interest period for Chase’s test group will last 18 months, as long as customers meet their minimum monthly payments.

Give credit: JP Morgan-backed Chase to roll out new card to existing customers first

For the pilot group, the representative APR is 24.9 percent. Chase will confirm customers’ purchase rate at the time they verify eligibility.

But this may change for clients after the pilot group. Chase said it will decide any rate changes for new customers before the full launch.

APR stands for Annual Percentage Rate. It is the total fee you will be charged to borrow money for a year with a credit card.

APRs are calculated by adding the interest rate to the card fee. APRs do not include fees or charges for late payments or cash withdrawals

The American Express Gold card has an APR of 88.3 per cent in comparison – that’s because the £195 annual fee is included in this rate.

Starting today, eligible customers on Chase’s trial panel will be able to apply for the credit card through the bank’s app.

Customers who are approved for the credit card will be able to start using it immediately using their digital wallet without needing to wait for the physical card to arrive.

Customers who are part of the test panel can check their eligibility in the Chase app and get confirmation of their offer, rate, and credit limit before applying without affecting their credit score.

Chase also launched a feature on its app that will allow customers to check their credit score.

Chase has attracted more than 2 million customers and racked up more than £20 billion in deposits since launching three years ago, attracting customers with cashback benefits, interest on current account balances and easy-to-access high rates.

Your checking account comes with a 3.5 percent easy-access linked account and 1 percent cash back on checking account spending.

Last month the Government moved to raise the bank protection threshold to £35bn from £25bn in a boost for Chase.

Chase, along with its Goldman Sachs rival Marcus, are not shielded from the broader operations of investment banks, so the £25bn cap was a barrier to the growth of their deposit takings.

Kuba Fast, CEO of Chase UK, said: “We are excited to be able to offer a small group of existing customers the opportunity to trial our first credit card product.”

‘This is an important next step in expanding our offering to meet customers’ borrowing needs.

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