Saturday, November 26, 2022

Which Credit Card Is The Best For Students

Don't Miss

Best Student Credit Cards

The Best Credit Card For College Students

Advertiser Disclosure

Credit Card Insider is an independent, advertising supported website. Credit Card Insider receives compensation from some credit card issuers as advertisers. Advertiser relationships do not affect card ratings or our Editors Best Card Picks. Credit Card Insider has not reviewed all available credit card offers in the marketplace. Content is not provided or commissioned by any credit card issuers. Reasonable efforts are made to maintain accurate information, though all credit card information is presented without warranty. When you click on any Apply Now button, the most up-to-date terms and conditions, rates, and fee information will be presented by the issuer. Credit Card Insider has partnered with CardRatings for our coverage of credit card products. Credit Card Insider and CardRatings may receive a commission from card issuers. A list of these issuers can be found on our Editorial Guidelines.

Student credit cards are designed for students meaning people with limited or no credit history, and relatively low income. But before you get one,;it’s important to understand how credit cards impact your credit history. If you use a credit card irresponsibly you could end up with lots of expensive debt, negative items on your credit reports, or both.

Discover It Chrome Card For College Students

This card rewards students for excelling in school by providing a $20 credit for each year students achieve at least a 3.0 GPA. Users can also receive 2 percent cash back on gas and dining, and 1 percent on everything else. In addition, cash-back rewards are matched during the first year of membership.

Which Student Credit Card Has Better Upgrade Possibilities

Each student credit card has different upgrading possibilities. In some cases, it may not be possible to upgrade your card. Instead, you may have to close the one card and open up a new card with either the same issuer or a different one. But some card issuers do offer the option to transition to a traditional consumer credit card after college. If you desire to upgrade your card after college, it is best to contact the card issuer before applying to explore your options.

Don’t Miss: How Does First Premier Credit Card Work

Should I Add A Credit Card

With all the cards available today, you can build points and cash back, earning for spending every day. They can even reward you for your loyalty to your favorite airline or hotel. Also, credit cards are one of the fastest ways to a great credit score, unlocking doors to new opportunities. Look at our best credit cards to see if there is one that suits you.

How To Make The Most Of A Student Credit Card

Best Student Credit Card: Reviews Updated August 2020 ...

Successful card ownership isnt especially complicated. All it takes to grow your credit history is to open a card, use it occasionally and pay each bill on time. Similarly, most rewards cards will give you at least 1% back with every purchase.

However, it does take organization and planning to maximize your card usage and avoid charging more than you can afford.

To get the most value from your student card:

  • Watch your balance and only charge what you know you can repay quickly. Otherwise, you could be surprised by how quickly your balance grows.
  • Pay attention to your credit cards billing cycle. The period of time between the first day of a billing cycle and the due date is called your . Its required by law to last at least 21 days. However, some lenders billing cycles last as long as 25 days or more. This period is important because you wont be charged interest during this period if you pay your bills in full. But if you carry a balance, a lender may start charging interest as soon as a purchase posts to your account.
  • Dont carry a balance if you dont have to. As long as you pay off your monthly balance in full each month, you can wait until your credit cards due date to pay off your monthly purchases without incurring interest. However, if you slip one month and carry a balance, then you may have to wait a month or two before your lender restarts the interest-free grace period.
  • Also Check: Valero.com/offer Pre-qualified Customer

    Citi Double Cash Card

    Card members can earn cash-back rewards twice: they get 1 percent when they make a purchase, and another 1 percent on those same items if they make at least the minimum payment due. In addition, people can earn $100 cash back if they spend $500 on their card within the first three months of opening their account. Additional benefits include assistance with identity theft and fraud, a lost wallet service and free tickets to movie screenings.

    Who Should Apply For A Student Credit Card

    Simply being a college student;isn’t enough by itself to qualify for;a student card. Here’s what you need to know.

    • Student status might matter.;Check the card’s terms and conditions on the issuer’s website for application eligibility. For example, the Journey Student Rewards from Capital One does not have an explicit student requirement, while the rules for the Discover it® Student Cash Back say “You must be a college student.”

    • Federal law limits who can get credit cards under age 21.;Issuers are prohibited from providing cards to people under 21 unless they have proof of independent income or a;co-signer; someone who agrees to;be responsible for the debt if the primary cardholder doesn’t pay the bill.;This can be a roadblock since most major credit card issuers dont allow co-signers.

    • Those 21 or over are also required to provide proof of income.;However, they can list;any income to which;they;have reasonable expectation of access.

    • Bad credit is usually a dealbreaker.;Student credit cards are designed for people with little or no credit history. If you;have bad credit;because of missed payments or other missteps, you;probably;wont qualify for a student card on your own. In that case, look to a card specifically designed for people with bad credit.

    » MORE:;How to report income on your credit card application

    Also Check: How Do I Check My Cabela’s Credit Card Balance

    What Are The Benefits Of A Student Credit Card

    In addition to more relaxed eligibility requirements, the best student credit card will offer some of the following features:

    • Special rules for credit newcomers such as minimal late fees and no-penalty APRs
    • Lower credit limits — usually between $500 and $2,000
    • Cashback rewards program on spending
    • A “reasonable” APR — usually between 15 and 20%

    How To Maximize Your Student Credit Card

    Best Credit Cards for College Students 2020
  • Compare all rewards before applying. Choose a card that provides the maximum rewards for your spending habits, especially if the rewards rotate quarterly.
  • Know your due dates. Making on-time payments is the best way to increase your credit score.
  • Take advantage of rewards. If your card offers cash back for a 3.0 GPA, submit your paperwork on time to get those rewards. With some cards, you could earn $100 for getting good grades.
  • View your card as a tool. Use your card as a tool for practicing financial responsibility.A recent report by CNBC found 36% of American college students already have more than $1,000 in credit card debt. Its important to make purchases you can pay off in time.
  • Protect your credit score. As you build up your credit score, learn about factors that can bring it down. Applying for too many cards and opening or closing accounts often can negatively impact your score.
  • Read Also: My Best Buy Visa Card

    How Can A College Student Build Credit

    Your credit score is determined by factors like how long your credit history is, how much of your currently available credit line you are utilizing, and whether or not you have a history of late payments. It can seem like a bit of a Catch-22 to build your credit history if no one will give you credit because you dont have a history!;

    If you have no credit or a limited credit history and need a place to start to build your score, consider getting added to someone elses card as an . You may also consider getting a secured credit card since these typically don’t check your credit report or have very lenient credit history requirements. Instead, you’ll need to put down a security deposit that is equal to the credit line you are given.

    Bank Of America Travel Rewards Credit Card For Students: Best For Simplicity

    If you dont want to have to worry about bonus categories and prefer a simpler approach, then the Bank of America Travel Rewards Credit Card for Students might be the perfect choice for you.

    With this card, youll earn a flat 1.5 points for every dollar you spend on it, regardless of what kind of purchase you make. This is better than the standard 1% cash back, but youll miss out on the bonus categories of some other cards, which can earn you 2 to 5 times as much.

    Its also important to note that, unlike some other cards on our list, the Bank of America Travel Rewards for Students earn points instead of straight cash back. While you can always redeem your points for cash, youll lose some value, as youll get the most for your points when you use them for travel.

    Fortunately, its easy to redeem your points for travel on this card. Anytime you make a purchase that falls into the cards travel category, you can redeem points to cover the cost of that purchase. Travel includes airfare, hotels, buses, taxis and much more. In fact, Bank of America even counts many entertainment purchases, which means your points can be used for amusement parks and museums.

    Related: Having a credit card with trip insurance could save you thousands on your next vacation.

    Related: Tight on cash? These credit cards charge 0% interest on purchases.

    Recommended Reading: Macys.com/gopaperless

    The Benefits Of Having A Credit Card

    Now that you know how credit cards work, its important to look at their benefits. Credit cards are an incredible tool when used responsibly. If you consistently pay your bills, you can enjoy the following benefits.

    • You can build your credit score As you use your credit card, youll start to build a credit history and score. This is important if you ever need a loan in the future.
    • You can earn rewards There are cashback and travel credit cards that give you rewards on every purchase.
    • There can be additional benefits Many credit cards come with extra perks such as travel insurance, mobile device insurance, purchase protection, extended warranty, and more.
    • They can help you manage your cash flow Credit cards give you an interest-free period on your purchases. You only need to worry about your payment when your bill is due.
    • Make purchases worldwide Credit cards are widely accepted in person and online at most retailers around the world.

    Whats The Difference Between A Student Credit Card And A Regular Credit Card

    What Are the Best Student Credit Cards in 2020? Ultimate Guide

    The difference between a student credit card and a regular consumer credit card is that student credit cards have features geared towards students and may be easier to be approved for. A regular credit card may have higher standards to be approved and will likely offer either cash back or travel rewards in exchange for spending.

    Recommended Reading: Cabela Gift Card Balance Check

    Best For Small Purchases And Supermarkets

    Who’s this for? College students who make frequent, small purchases should consider the Citi Rewards+ Student Card, which offers a unique “round up” feature. For every purchase you make, points are rounded up to the nearest 10 points. So, a $2 coffee earns 10 points and a $21 dinner earns 30 points. This clever feature allows you to maximize rewards without any additional action on your part.

    In addition to rounding up, you get 10% of your points back for the first 100,000 ThankYou® Points you redeem per year. If you redeem 25,000 points in a year, you get 2,500 of those points back enough for a $25 gift card. You can redeem points for gift cards, travel rewards or shop with points on Amazon and Best Buy.

    This card also has a strong rewards program for supermarket and gas station spending with cardholders earning 2 ThankYou® Points per dollar spent up to a $6,000 annual maximum .

    You must be at least 18 and currently enrolled in college to qualify for this card.

    Can You Pay Your Student Loans With A Credit Card

    Federal student loan servicers do not allow credit card payments for student loans. If your student loan is through a private firm, you may be able to use a credit card, but transaction fees may apply.

    Be careful if youre considering using a credit card to pay for a student loan because youre transferring credit card debt to another form of debt, which can have higher penalties and interest. Youll have to factor in interest rates, fees and rewards to determine what is best for your financial situation.

    Read Also: How To Settle Credit Card Debt With Chase

    Capital One Quicksilver Student Cash Rewards Credit Card

    Our pick for: Flat-rate cash back

    The Capital One Quicksilver Student Cash Rewards Credit Card gets high marks for cards in its class, thanks to its $0 annual fee and its no-fuss rewards rate: 1.5% cash back on all purchases. That’s as good a combo as you’d find on even a lot of non-student cards.;Read our review.

    Here’s What College Students Should Know About Credit Cards And How To Start Your Search

    5 BEST Credit Cards For COLLEGE STUDENTS 2021! (Best Student Credit Cards)

    In many ways, getting a student credit card is easy. Anyone with a computer can search for “student credit cards,” fill out an application, and potentially get a credit card. However, to do it right, there are a few things about credit cards, and how to choose the right one, that college students should be aware of.

    With that in mind, here’s a quick guide to the pros and cons of student credit cards, the rules that dictate who can get a student credit card, and how to compare the various student-focused credit card products currently on the market.

    Also Check: How To Change Usps Address Without Credit Card

    Best Overall Best For Travel: Bank Of America Travel Rewards For Students

    25,000 bonus points if you make at least $1,000 in purchases in the first 90 days of your account opening – which can be redeemed for a $250 statement credit toward travel purchases.

    Earn unlimited 1.5 points for every $1 you spend on all purchases everywhere.
    INTRO PURCHASE APR 0% for 12 Billing Cycles
    Balance Transfer Fee Either $10 or 3% of the amount of each transaction, whichever is greater.
    Foreign transaction fee
    • Why We Chose This Card:
    • Pros & Cons:

    The Bank of America Travel Rewards for Students is our pick for the best overall student card and best student travel card because of the high earning rate on its rewards program that you can then redeem for flights, hotels, vacation packages, cruises, rental cars, or baggage fees. It also has a long introductory APR on purchases and no annual fee which add to the card’s strong rating. Plus, the lack of foreign transaction fees makes this an ideal card for student travel outside the U.S.

    • Pay off purchases for 12 months with no interest

    • Friendly to foreign travel

    • Rewards aren’t transferable

    • No 0% APR balance transfer offer

    • Relatively high spending required for 25,000-point introductory one-time bonus

    Read the full Bank of America® Travel Rewards for Students credit card review

    Can You Apply For A Student Credit Card With No Credit

    Yes! One of the things that sets student credit cards apart is that they are specifically designed for students who are new to building credit. This means you won’t need any kind of credit history when applying for a credit card for students. If you use your new student card responsibly — paying it on time every month and keeping your balances low — you’ll build credit over time.

    Recommended Reading: How To Pay My Bestbuy Credit Card

    Should You Get A Normal Or Student Credit Card

    Standard credit cards open up your options in a couple of ways.;If you’re ultra-disciplined, a 0% purchase card gives you a window of interest-free spending. You could do all your regular shopping;on a 0% card while letting;your own funds build up;in a savings account;.

    That said, it’s still important to only buy what you have the cash for, and to keep that money safe until you need it to clear your balance. The aim of the game is to always repay in full before the interest kicks in. In other words, always make sure you plan ahead.

    If you like the idea of rewards, a;cashback or points card can earn you anything;from money back to air miles and;store vouchers and can be worth it if you’re loyal to one store or supermarket.

    Again, rewards are only valuable if you’re scrupulous about clearing your balance in full each month. Otherwise, any extra charges, penalties could wipe out any gains.

    Ask A Parent To Make You An Authorized User

    5 of the Best Credit Cards for College Students in 2020

    Very few credit cards have options for cosigners. But if your parents have good credit habits, they may be able to make you an authorized user on their credit card.

    When you become an authorized user, you inherit your parents good behavior on your credit report. This is a good hack but it can backfire if your parents have poor credit or become unable to pay their bills.

    Read Also: Best Buy Credit Card Financing Options

    More articles

    Popular Articles