This New Chase Credit Card Lowers Your APR Automatically

Chase's newest credit card breaks the mold.

For years, Chase credit cards have been synonymous with big rewards and premium travel. And if you didn't have at least good credit, you probably couldn't get in the door unless you were a student.

But the new Chase Slate Edge℠ Chase Slate Edge℠ is changing all that. This isn't your typical Chase rewards card. In fact, it doesn't earn purchase rewards at all.

That's because the Chase Slate Edge℠ isn't for rewards maximizers or travel lovers. This no annual fee card is designed for cardholders in need of a little help. In lieu of rewards, the Chase Slate Edge℠ offers a variety of features that can help you pay down debt and build credit, including multiple ways to lower your interest fees and save money.

Automatically reduce your APR with regular use

The most remarkable feature of the new Chase Slate Edge℠ card is its unusual APR structure. Specifically, cardholders can look forward to an automatic APR reduction each year, down to a minimum APR of the prime rate plus 9.74%.

Every year, your account will be automatically reviewed for eligibility for a 2% APR reduction. You'll need to spend at least $1,000 on your card each year to qualify and pay on time.

As an example, suppose you are initially offered an APR of 19.99% at approval. If you spend at least $1,000 on your card during the first year and pay on time, you could get an automatic 2% APR reduction after your anniversary, giving you a new APR of 17.99%. If you spend at least $1,000 over the following year and pay on time, your APR could drop another 2% to 15.99% after your second anniversary.

Of course, if the APR you receive initially is already fairly low, you may not get a full 2% drop. And the minimum APR limit will vary with the prime rate, which will affect how low your APR can fall.

Save instantly with intro offers

In addition to the option for lowering your APR each year, the Chase Slate Edge℠ has a few money-saving options specifically for new cardholders. For one, you'll instantly save on interest fees with an intro-APR offer that's good on both new purchases and balance transfers.

This offer means you'll pay 0% interest on purchases and balance transfers for the first 12 months. After that, your APR will revert to the go-to rate.

Note that balance transfers are subject to a balance transfer fee.

Watch out for the penalty APR

The Chase Slate Edge℠ has a lot of interest-related goodies, but it does have one potential interest pitfall: a penalty APR. Namely, you could wind up with a penalty APR applied to your account if you:

• Don't make your minimum payment on time, or
• Make a payment that is returned unpaid

The penalty APR will apply to your current balance, as well as any future purchases. Unfortunately, if you do trigger the penalty APR, you may be stuck with it indefinitely.

As such, be sure you make at least your minimum payment on time every month. If you're worried about missing a payment, set up automatic payments so that your minimum payment is paid automatically each month before your due date.

A solid pick for interest-conscious cardholders

Overall, the Chase Slate Edge℠ is a nice addition to the Chase card portfolio -- especially since the issuer's other cards are all designed for higher-credit consumers. If you want to get a foot in the door with Chase but you need to pay off card debt or build credit, the Chase Slate Edge℠ could be a great option.

Of course, while we don't have hard data points on it yet, the odds are good that the Chase Slate Edge℠ falls under the Chase 5/24 Rule. This means that if you've opened five or more new credit cards in the last 24 months, you won't get approved for a new Chase credit card. So, if you're interested in the new Chase Slate Edge℠, be sure you're not in breach of the 5/24 Rule before you apply.