The Chase +1 Student Credit Card can be enjoyed without worrying about an annual fee. Card holders can earn “Karma” points which can be used for donating to charities, toward merchandise, or share with friends. It has a high variable APR at 21.24% or 17.24% but a tie up with social networking site FaceBook make this card the coolest credit card for students.

The card also charges reasonable late payment fees while there is no over the limit fee too. Basically, the card can teach students good financial behavior with rewards going to those who behave right and penalties for going a bit too carefree with your spending.

How the card works

The Chase +1 Student Card is a valid card issued by a major US bank. It is made available for students who does not have a credit history or is just starting to build one.

Instead of the usual reward points for every dollar spent, the student card holders will get Karma points for behaving well towards a good credit. Things like completing a quiz on credit essentials and paying their bills on time will win them some Karma points.

These Karma points can be used to purchase goods from Chase +1 online store (concert tickets, cameras, MP3 players, and other hip things students love), donate to charity, or send to friends on Facebook. The Chase +1 card teaches student well on how they can build their credit properly. I am not sure why will be giving my Karma points away unless I take some good Karma back.

Benefits

Automatically get 20 Karma points the first time you use the Chase +1 Student Card to buy something, issue a convenience check, or when you transfer some balance to the card.

When you pay the bill on time and every month the card is in good standing, Chase will give you additional 2 Karma points. Additional 8 points can be earned if you pay on time and do not go over your credit limit for six consecutive months.

Fees

Students will love this card cause it does not have an annual fee. The structure of charges for late fees is also very reasonable. It will cost you $15 for balances through $100. Balances through $250 will charge a late fee of $29 while $39 will apply for balances of $250 and up.

The card does not charge any over the limit fee but you still have to be very careful cause it will punish you with a stiff APR of 29.99% when you spend too much or have a late payment. Of course, no Karma points for you for that month. You will also not qualify for the bonus points.

Cash advance fee is about 4% but not lower than $10. Balance transfer has also the same rate but not going below $5.

Pros and Cons

This credit card is really student friendly with all the positive features like:

• No annual fees
• No over the limit fees
• Good and fun reward points structure
• Provides great tools for students to learn credit building
• Linked with Facebook
• Encourages donation to charity
• Gives a 20-day grace period

Only downside for this card is the high APR.

Verdict

If you are a student who is still trying to build a good credit history, you should really consider getting the Chase +1 Student Credit Card. The APR is a bit high compared to other cards but the other features make it worth while. It is fun to use but then teaches you a lot about establishing a good credit.

The credit card can teach you how to be responsible coming with excellent tools and tips so you will develop good financial habits.