If you are a Chase credit card fan, you may be excited to learn that the bank has spiced up the Chase Slate brand with the Slate EdgeSM credit card.
This card offers generous introductory APR offers on both new purchases and balance transfers, and it also promises to lower your interest rate by 2% each year if you complete the qualifying actions as a cardholder.
That interest rate perk works well for consumers who regularly carry a balance, but are the card’s other incentives attractive enough to make it an everyday spender you’ll want to add to your wallet?
Team Clark breaks down some of the important things to know about this card before you apply.
Slate EdgeSM Credit Card: 4 Details To Know
1. The More You Pay on Time, the Lower Your Interest Rate Will Be
The hook for this card is pretty simple: The more you spend and pay on time with the credit card, the more Chase will lower your interest rate.
If you make all your payments on time and spend at least $1,000 per year, you’ll automatically be considered for a 2% reduction in your card’s APR each year. This evaluation will happen on your account anniversary (the end of the first year of your card membership).
While your starting point for APR on new purchases and balance transfers will vary based on your individual credit history, Chase does put a limit on how low your interest rate can actually go.
Once your APR reaches the U.S. prime rate plus 9.74%, you’ll no longer be eligible for the reduction. Using a sample prime rate of 7.50% (which has been the case in recent times), the lowest your APR could get on this card is 17.24%.
Keep this in mind as you consider the rest of the perks for this card. Many customers with strong credit scores may find that their local credit union offers a fixed rate credit card with an APR lower than the best-case scenario with this one.
2. There Is an Introductory APR Offer on New Purchases and Balance Transfers
If you’re looking to finance a new purchase without interest for a period of time or are seeking relief from high interest rates on an existing credit card, the Chase Slate Edge could be of some value to you.
The Chase Slate Edge℠ credit card offers 0% Intro APR on Purchases for 18 months. Afterwards, the Variable APR will be 19.24% – 27.99%, based on creditworthiness. The Chase Slate Edge℠ credit card offers 0% Intro APR on Balance Transfers on balance transfers for 18 months. Afterwards, the Variable APR will be 19.24% – 27.99%, based on creditworthiness.
Balance transfers are subject to a 3% fee with a minimum fee of $5.
Before you make a move based on these rates, make sure you have a plan to pay off your balance before the end of the promotional period to ensure you don’t face interest charges when that 18-month period is up.
3. Chase Removed the Welcome Bonus For This Card But Is Offering an Alternative Perk
Chase launched this card in 2021 with an underwhelming welcome bonus ($100 bonus if you spent at least $500 within the card within your first six months of membership).
But as of 2022, a new offer is in place: Slate Edge cardholders get 18 months of fee-free access to My Chase Plans on select purchases of $100 or more made with the card.
The “My Chase Plan” is essentially a “buy now, pay later” plan that lets you make a set number of monthly payments to pay off a purchase without accruing interest charges. Typically the use of My Chase Plan requires a fixed monthly fee, but this card benefit gets rid of it for 18 months.
You can choose this payment method for approved transactions by selecting the “My Chase Plan” option next to the transaction on your online account statement or on the Chase app.
4. You May Get a Higher Credit Limit After 6 Months
If you make on-time payments and spend at least $500 in the first six months you have the card, you could see an increase in your credit limit. Completing both of these requirements will trigger your account for an automatic assessment.
While Team Clark strongly suggests that you avoid credit card debt by paying your balance in full each month, there are some potential benefits to having a higher spending limit.
It can reduce your credit utilization percentage, which is a factor that can help increase your credit score over time.
Slate EdgeSM credit card: Pros and Cons
|Good length on the introductory APR periods for balance transfers and new purchases.||No rewards program for purchases|
|Clearly defined path to lowering your standard APR and upping your credit limit with good spending habits||No more cash welcome bonus offer|
|Temporary reprieve from My Chase Plan fees|
The Slate Edge brings some interesting concepts to the table. There is a healthy introductory APR period if you need it, and there are some creative ways to improve this card’s value to your wallet by spending responsibly.
But if I’m being candid, there’s nothing about this offering that makes me want to jump in line to apply.
The “lower your APR as you pay on time” model is a good one that encourages smart financial behavior, but limiting the floor for your APR to Prime Rate + 9.74% is a bit of a buzzkill for people who have access to cards that already offer a lower standard APR rate.
Without the ability to move this rate lower, most customers should probably consider passing on this offer.