Can You Get a Chase Freedom Unlimited Credit Card with a Low FICO Score or Limited History?

Although obtaining a Chase Freedom Unlimited credit card when you have a low FICO score or limited credit history can be challenging, it is not impossible. Here are some key points to consider if you are in this situation:

Credit Score Requirements

Chase generally prefers applicants with a good to excellent credit score, typically above 670. Applicants with a lower FICO score are more likely to face rejection. It is essential to understand your current credit score and where it stands before applying for a Chase Freedom Unlimited credit card.

Limited Credit History

When you have a limited credit history, your application will likely be scrutinized more closely. Credit card issuers, including Chase, look for a history of responsible credit use. If you have just started building your credit or have a short history, this could pose a challenge in getting approved. However, there are alternative options available to help you build your credit and make you a better applicant for future credit card applications.

Alternative Options

Secured Credit Cards

Applying for a secured credit card is a good option if you have a low FICO score or limited credit history. These cards require you to provide a cash deposit, which serves as collateral and becomes your credit limit. By using a secured credit card responsibly, you can help build your credit score over time. Secured cards also report to credit bureaus, so your credit score will benefit if you use the card responsibly. However, if you are irresponsible and do not pay your bills, your credit score will suffer. Additionally, if you do not pay your entire balance down to zero each month, the rewards from a rewards card will be erased due to the high-interest rate you will be charged.

Credit Builder Loans

Credit builder loans can also be helpful in establishing a positive credit history. These loans do not require a traditional credit check and can be a good way to start building your credit. Over time, as you make consistent payments, your credit score will improve.

Prequalification and Co-Signer

Check if Chase offers a prequalification tool to see if you might be eligible for the card without affecting your credit score. If possible, applying with a co-signer who has a strong credit history can significantly improve your chances of approval. The co-signer assumes responsibility for the debt if you are unable to make payments, making the card more appealing to the issuer.

Improving Your Chances of Approval

Even if you are initially denied or face challenges in getting approved, there are steps you can take to improve your chances of success in the future:

Ensure that any existing credit accounts have low utilization rates. Make sure to maintain on-time payments on all credit accounts. Regularly review your credit report for any inaccuracies and dispute any errors.

Remember that if you decide to apply for a Chase Freedom Unlimited card, you may face the possibility of rejection. It is beneficial to work on improving your credit score before applying for the card. By understanding the factors that influence your credit score and taking proactive steps to improve your financial habits, you can increase your chances of success in the future.

Understanding the Credit Scoring Process

Chase is a massive bank that can choose who to extend credit to. If you have a low FICO score, your only option might be a secured credit card where you provide a cash deposit that becomes your credit limit. The card will function like an unsecured card, but the bank is protected if you do not pay your billing statements. Secured cards also report to credit bureaus, helping to increase your credit score if you use the card responsibly. Your score will drop if you are irresponsible or do not pay your bills. If you do not pay your entire balance down to zero each month, the rewards from a rewards card will be erased by the high-interest rate you will be charged.

Before applying for any credit card, it is beneficial to watch some videos on YouTube about how credit scores are determined. This way, you won't lose points off your score due to a lack of understanding of the scoring process. Payment history makes up 35% of your credit score, while the utilization percentage of the available credit you use makes up 30% of your credit score. Understanding these factors can help you manage your credit more effectively.