What the Freedom Rise Credit Card Is
The Freedom Rise Credit Card is a secured credit card issued by Stride Bank. You put down a cash deposit, and that deposit becomes your credit limit — so if you deposit $500, you get a $500 limit. The card reports to all three credit bureaus (Equifax, Experian, and TransUnion), which means your payment history builds your credit score over time.
This card is designed for people rebuilding credit or starting from scratch. Because the bank holds your deposit as collateral, they take on less risk, which is why they can approve people with no credit history or a damaged one. The tradeoff is that you pay an annual fee and the interest rate is higher than cards for people with good credit.
The card works like any other once you have it: you charge purchases, receive a monthly statement, and pay your bill. The difference is that your deposit sits in a separate account and secures the line of credit. After you demonstrate responsible use — usually 6 to 12 months of on-time payments — you may be able to move to an unsecured card or have your deposit returned while keeping the account open.
Key Takeaways
- Your cash deposit becomes your credit limit, so you control how much credit you take on by choosing your deposit amount.
- The card charges an annual fee (currently $39) and a higher interest rate than standard credit cards, so carrying a balance costs more than it would elsewhere.
- Every on-time payment reports to the three major credit bureaus, building your credit history month by month.
- After 6 to 12 months of responsible use, you may graduate to an unsecured card or have your deposit released while keeping the account open.
- The card has no foreign transaction fees, which is unusual for a secured card and useful if you travel internationally.
How Your Deposit and Credit Limit Work
When you open the Freedom Rise card, you choose your deposit amount. Stride Bank requires a minimum deposit of $500 and allows up to $2,500. The deposit sits in a savings account that earns a small amount of interest — currently around 0.01% APY, though this rate can change. Your credit limit equals your deposit, so a $500 deposit gives you a $500 limit.
The deposit is yours to keep. It is not a fee, and it is not spent when you use the card. You can withdraw it at any time, though doing so will lower your credit limit to match the new deposit amount. For example, if you withdraw $100 from a $500 deposit, your credit limit drops to $400. If you close the account, your deposit is returned to you.
The point of the deposit is to let you build credit without the bank taking much risk. Because they hold your money, they know they can cover your balance if you stop paying. This is why secured cards can approve people that unsecured cards would reject.
Fees and Interest Rates
The Freedom Rise card charges a $39 annual fee, due each year on your account anniversary. This fee is charged whether you use the card or not. There is no monthly fee, no foreign transaction fee, and no fee for going over your limit (because you cannot — the card will straightforward decline if you try to charge more than your limit).
The interest rate (called the APR, or annual percentage rate) is currently 18.99%. This is higher than rates on standard credit cards, which often range from 15% to 25% depending on your credit score. If you carry a balance — meaning you do not pay off your full statement balance each month — you will pay interest on that balance at 18.99% per year.
To avoid interest charges, pay your full statement balance by the due date each month. If you can only pay part of the balance, the interest will accrue on the unpaid portion. For example, if you charge $300 and pay only $200, you will owe interest on the remaining $100.
How Payments and Credit Reporting Work
Each month, Stride Bank sends you a statement showing your charges, your minimum payment due, and your due date. You can pay online, by phone, or by mail. The minimum payment is typically 1% to 3% of your balance, but paying only the minimum means you will pay interest on the rest.
Your payment history is reported to Equifax, Experian, and TransUnion every month. This means that every on-time payment adds to your credit history, and every late payment damages it. A single 30-day late payment can lower your score by 100 points or more, depending on your current score. Payments that are 60 or 90 days late cause even more damage.
To build credit effectively with this card, treat it like any other bill: set a calendar reminder, pay on time, and keep your balance low. Using only 10% to 30% of your credit limit (called your utilization rate) and paying in full each month will build your score faster than carrying a high balance.
When You Might Graduate to an Unsecured Card
After 6 to 12 months of on-time payments, Stride Bank may offer to convert your account to an unsecured card. This means your deposit is released back to you, but your account stays open and continues to report to the credit bureaus. The interest rate may drop slightly, though it will still be higher than rates for people with good credit.
You do not have to wait for Stride to offer — you can also explore for a different unsecured card from another bank once your credit score has improved enough. Many people use a secured card for 12 to 18 months, then move to an unsecured card with better terms and close the secured account (or keep it open to maintain a longer credit history).
Whether you graduate depends on your payment history, not on a specific credit score. Stride looks at whether you have paid on time, kept your balance reasonable, and stayed within your limit. If you have done those things consistently, you have a good chance of being offered an upgrade.
Comparing Freedom Rise to Other Secured Cards
Other banks offer secured cards with different terms. The Capital One Secured Mastercard, for example, has a $39 annual fee and an APR of 18.99% — the same as Freedom Rise. The Discover Secured Card has no annual fee but requires a $200 minimum deposit and has an APR of 16.99%. The OpenSky Secured Visa has no annual fee but charges a higher APR of 19.99% and does not report to all three bureaus in the same way.
The main differences to compare are the annual fee, the APR, the minimum deposit, and whether the card reports to all three bureaus. Freedom Rise's lack of foreign transaction fees is a genuine advantage if you travel internationally. Its $39 annual fee is standard for secured cards, and its APR is competitive.
The best choice depends on your situation. If you travel internationally, Freedom Rise may be worth the annual fee. If you want to avoid an annual fee, the Discover Secured Card is a solid alternative. If you have a very thin credit file and need to build history quickly, any of these cards will work — the key is consistent on-time payments, not which card you choose.
What Happens If You Miss a Payment
If you miss a payment, Stride will charge a late fee (currently $25 for the first late payment, $35 for subsequent ones within six months). More importantly, a late payment will be reported to the credit bureaus and will damage your credit score. A payment that is 30 days late can lower your score by 100 points or more.
If you miss a payment, contact Stride as soon as you realize it. Some banks will waive a single late fee if you call and pay within a few days. Even if they do not waive the fee, paying when ready will limit the damage to your credit score — a payment that is 30 days late does less damage than one that is 60 days late.
If you fall behind on multiple payments, Stride may close your account and send your debt to a collections agency. This is far more damaging to your credit than a single late payment. If you are struggling to make payments, contact Stride before you miss a payment to discuss your options.
Frequently Asked Questions
Can I increase my credit limit without adding more money?
No. Your credit limit is always equal to your deposit. To increase your limit, you must deposit more money into the account. You can do this by transferring funds to the savings account that holds your deposit, up to the $2,500 maximum.
What if I need my deposit back before I graduate to an unsecured card?
You can withdraw your deposit at any time, but your credit limit will drop to match the new deposit amount. If you withdraw all of it, your account will close. Withdrawing your deposit does not hurt your credit score, but closing the account may lower your score slightly because it shortens your credit history.
Does the Freedom Rise card have a grace period for interest?
Yes. If you pay your full statement balance by the due date, you will not pay any interest, even though the APR is 18.99%. Interest only applies to balances you carry past the due date. This is why paying in full each month is the best way to build credit without paying extra.
How long does it take to build credit with this card?
You will see changes in your credit score within 30 to 60 days of opening the account, assuming you make your first payment on time. Significant improvements typically take 6 to 12 months of consistent on-time payments. The longer you keep the account open and in good standing, the more it helps your score.
What if my credit score improves but Stride does not offer to convert my account?
You can explore for an unsecured card from another bank once your score is high enough. Many people do this after 12 to 18 months with a secured card. You can keep the Freedom Rise card open (which helps your credit history) or close it — closing it will not hurt your score as much as it would have when the account was new.