Chase is expanding its product range, with the launch of its first-ever credit card in the UK market.
Chase has been popular for having some of the best rates on savings accounts and its cashback has been a popular feature for current account holders, but is its credit card offering any good?
The digital bank has been quietly testing the credit card, with more than 25,000 existing Chase customers invited to use the card since November, following a pilot with the bank’s employees.
Sign up to Money Morning
Don’t miss the latest investment and personal finances news, market analysis, plus money-saving tips with our free twice-daily newsletter
Don’t miss the latest investment and personal finances news, market analysis, plus money-saving tips with our free twice-daily newsletter
MoneyWeek can now reveal that the credit card is going through some further testing and is expected to be ready for general availability some time in June. Further details should be released in the coming weeks.
The launch will follow some changes to its savings account and popular current account.
Last week Chase cut the interest rate on its boosted savings account, meaning savers can now only earn up to 4.5%. The rate, which includes a six-month 1.75% fixed bonus rate, was previously 4.75%.
The rate cut was due to the Bank of England’s decision to lower the base rate by 25 basis points to 4.25% on 8 May. The Chase Saver rate was also reduced in February.
Meanwhile, in April, Chase overhauled its popular cashback deal, meaning current account customers can only earn 1% cashback in certain places, and it’s restricted to purchases made in the UK and paid for in pounds sterling. Previously, cashback was paid on any spending in the UK or worldwide.
But can Chase draw in new customers with a credit card deal? We look at what we know so far about Chase’s new credit card.
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. Currently, Chase only offers a current account and a savings account, plus you can also invest with Nutmeg, part of the JPMorgan family, via the Chase app.
In November last year, the bank revealed it was piloting a new credit card. Chase said: “Our colleagues have been busy testing the new Chase credit card – and it’s now ready for a small group of eligible customers to apply for.
“This group will help us make sure everything works by the time we invite more customers to check their eligibility in the Chase 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.
Kuba Fast, chief executive of Chase UK, said at the time: ‘We’re excited to be able to offer a small group of existing customers the opportunity to try our first credit card product.
‘This is an important next step in expanding our offer to meet customer borrowing needs.”
So far, Chase customers must wait to be invited to apply via the app. But from next month, it should be ready for “general availability”. This means any Chase current account customers will be able to apply for the card.
MoneyWeek understands that the credit card comes with 0% interest on purchases, no foreign exchange fees, and no annual fee.
Chase says it will confirm the details in the coming weeks.
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.
