Review of Chase CashBuilder Credit Card

The Chase Cashbuilder Credit Card was last reviewed on : 23rd January 2005

Summary - The Chase CashBuilder Credit Card has a tiered rebate structure which allows you to earn up to 2% cash rebate on any purchases. You need to spend more than $6000 a year and carry a balance of $500 or more to earn the maximum 2% rebate. (see the Chase Cashbuilder Rebate Formula below. You can earn up to $500 in cash rebate in one calender year. You will get your cash rebate in the form of a check annually.

If you carry a balance of less than $500, you can earn a maximum rebate of up to 1% if your annual spending exceeds $6,000. As you can earn up to $500 in rebates, that means you can earn rebates up to an annual expenditure of $53,000. Your effective cash rebate percentage is 0.9434%.

If you carry a balance of more than $500 and spend more than $6,000, you can earn a maximum rebate of 2%. As you can earn up to $500 in rebates, that means you can earn rebates up to an annual expenditure of $28,000. (see our article on Case Study on Chase Cashbuilder - how to analyze a tiered cash rebate credit card.

There is no annual fee and if you have a Chase banking relationship and the necessary credit history, you will get a lowAPR rate of Prime Rate plus 4.99%. There is also a 12 month 0% introductory APR for balance transfers (with no balance transfer fee during the introductory period).

One thing to note is that for billing periods falling on or after 1st March 2005, the Chase Cashbuiler credit card will use the 2-cycle average daily balance method (including new purchase) of calculating your balance rather than the average daily balance (including new purchase) method.

The Chase CashBuilder Credit Card will be suitable to those who meet the following criteia:

1. Carry at least $500 in balance and spend more than $6,000 on their credit card and spend up to $28,000 on their credit card.

2. Has a Chase banking relationship and able to get the lowest APR (important as you need to carry a balance to earn maximum rebates).

If you do meet the above criteria, then you will be able to fully utilize the tiered rabate formula and earn a 2% rebate.

Those who do not meet the criteria (especially those who do not pay their monthly bills fully) should consider other cash back credit cards with a simpler rebate formula that does not require you to carry a balance.

Positives

* 2% rebate is very good, though it is a tiered strucutre.
* No annual fees
* Low APR if you qualify. (ie you have a Chase banking relationship and the necessary credit history to get the lowest APR).

Negatives

* Complicated tiered rebate structure that requires you to carry a balance and spend beyond a certain amount.
* Chase will be using the 2-cycle average balance method (including new purchase) of calculating balances from 1st March 2005 onwards.

Chase Cashbuilder Credit Card Benefits

Reward Structure - The Chase CashBuilder Credit Card offers a tiered rebate structure that lets you earn up to a maximum of 2% rebate if you carry more than $500 in monthly balance and have an annual spending of more than $6,000. There is a limit of $500 in cash rebates that canbe paid out in a year. You will also get your check once every year at the end of your registrationdate (give and take 4-6 weeks). The following table spells out the rebate structure.

If Monthly Balance isAND Annual Spending isthen rebate precentage is
$0.00-$499.99$0-$20000.25%
$2000.01-$40000.50%
$4000.01-$60000.75%
$6000 and up1.00%
$500 and up$0-$20000.50%
$2000.01-$40001.00%
$4000.01-$60001.50%
$6000 and up2.00%

Credit Card Benefits - You get typical chase/visa type benefits like travel insuranceup to $500,000, free auto rental collision insurance.

Cost and Interest rates - There is no annual fee for this credit card. A 0% introductory APR for balance transfer is available for the first 12 months. No balance transfer fees apply during this period for any balance transfers. The APR is a tiered system. If you have a Chase relationship and meet the necessary credit criteria, you will be charged Prime Rate plus 4.99% (Elite Pricing). If you are a Chase credit card customer and meet the credit criteria, the APR is Prime Rate plus 8.99%. The standard Pring rate is Prime Rate plus 14.99%.


Chase Cashbuilder Credit Card
Reward Benefits
Signing BonusNo signing bonus
Rebate PercentagesTiered level Cash Back reward
Earn up to 2% cash rewards if you carry more than $500 balance monthly and if annual expenditure exceeds$6,000
Earn up to 1% cash reward if monthly balance is less than $500, and if annual expenditure exceeds $6000
Caps on RewardsUp to $500 per calender year
Travel and Insurance Benefits
Up to $500,000 Automatic Travel Accident Insurance
Free Auto Rental Collision Insurance
Other Benefits
Online Account Access
Online account statements
Chase Bill Management Center
Credit Line increases
Cost/Fees/Interest rates
Introductory rate0% introductory APR on balance transfers for first 12 months
Annual FeesNo annual fee
Purchase APRPrime Rate plus 4.99% for Elite Pricing
Prime Rate plus 8.99% for Premium Pricing
Prime Rate plus 14.99% for Standard Pricing
Balance Transfer APRPrime Rate plus 4.99% for Elite Pricing
Prime Rate plus 8.99% for Premium Pricing
Prime Rate plus 14.99% for Standard Pricing
Cash Advance APRPrime Rate plus 15.99%
min is 19.99% for Elite and Premium Pricing
min is 23.99% for Standard Pricing
Penalty/Default Rate APRPrime Rate plus 23.99%
Min Finance Charge$1.00
Grace Period20 days
Balance Calculation MethodFor billing cycles ending on or before February 28, 2005: Average Daily Balance (including new purchases)
For billing cycles ending on or after March 1, 2005: Two Cycle Average Daily Balance (including new purchases)
Balance Transfer Fee$75.00 per transaction
Free during introductory period
Cash Advance fee3% min $10.00
Foreign Currency Conversion feeFor billing cycles ending on or before March 31, 2005: 2% of the converted transaction amount.
For billing cycles ending on or after April 1, 2005: 3% of the converted transaction amount.
Over-the-credit-limit fee$35.00
Late Payment fee$15.00 - up to but not including $250
$35.00 - $250 or greater

You can apply for the Chase CashBuilder Credit Cardhere

Or go back to Cash Rebate Credit Card page to browse through more cash rebate credit cards




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