Best Credit Cards For Students
Our list of the best credit cards for students was compiled to make establishing good credit a little bit easier for our readers. Whether your a parent researching for your son or daughter, or a college student looking to get a credit card, we have all the answers you need right here.
What To Consider When Choosing
When we were choosing the best credit cards for students one of the first things we look at is interest rate. On a credit card offer the interest rate appears as annual percentage rate (APR). Your APR can either be a fixed rate or a variable rate. A fixed rate is a rate that will remain consistent through out the life of the credit. A variable rate is a rate that is tied to some other financial indicator like a prime rate.
Chances are you’ll be working with a variable rate credit card, fewer and fewer creditors are offering fixed rates now a days in large part do to the Credit Card Act of 2009.
- Annual Fee
Theres no need to open a student credit card with an annual fee, all the ones we have listed here are free of that burden. If you already have a credit card with an annual fee, call your credit company and ask them to remove it, our experts say creditors will often remove the fee if you go through the trouble of getting in touch with them. If you do have an annual fee and you aren’t able to get it removed just make sure the rewards and bonuses out weigh the fee.
- Spending Habits
Ask yourself “how do I intend to use this card?”. Is it only for emergencies? Will you pay it off every month? Will you be making larger purchases? If your a student I wouldn’t imagine you are making to many large purchases, but none the less these are still things to consider.
If you plan on paying off your bill every month the interest rate isn’t quite as important. If you plan on making larger purchases or this student card will be your go to purchasing method, look for a card with a higher credit line and better reward rates.
Two Best Credit Cards For Students
APR: %0 for first seven months; After that, variable APR will be between %13.99 and %23.99 depending on creditworthiness.
We like the points based rewards system; you get five points for every dollar you spend on restaurants, video rentals, and movie theaters. For college students who eat out often and spend a lot of money on textbooks these points can add up quickly and turn into nice rewards. Citi will even reward you an extra one hundred points every billing cycle if you maintain the account properly. You can redeem your points in a number of ways including gift cards and electronics. No wonder this is one of our best credit cards for college students.
Be Advised: If you plan on traveling overseas for a study abroad trip be aware that the Citi Forward Card does charge a 3% transaction fee for all purchases made in foreign currency.
Learn more about the Citi Forward Card for College Students and why its on our best credit cards for students lists.
APR: %19.8 variable
The Capital One Journey Student Rewards card give you %1 cashback on every purchase you make. That means if you spend $1000 dollars a month thats $10 in rewards right there, it can really add up. You can redeem these cash rewards whenever you want in the form of; a check, statement credit, gift card, or automatic redemption if that works best for you.
You can also get a %25 bonus on the cash back you already earn each month from your spending by paying your bill on time. You’ll basically be getting paid to pay your bill on time. The cash back feature will never expire and theres no cap on the amount you can earn.
Learn more about the Capital One Journey Student Rewards card.
Others To Consider
Basic Tips To Help Build Credit
- Pay Off Every Month
It doesn’t matter if you have one the best credit cards for students if you don’t pay off your balance every month. Avoid carrying a balance at all costs. Make small purchases, pay it off each and every month, and you’ll be well on your way to establishing good credit.
- Only Apply for One Card at a Time
Theres really no need for a student to have more than one credit card. Credit card company representatives swarm college students because they are vulnerable targets. A friend of mine from school attempted to open five credit cards in his first semester of school. Needless to say he vastly overspent his budget and is now dealing with the consequences. Most students have unestablished credit; applying for multiple credit cards will harm your credit score.
- Make Small Purchases
Most college students use credit cards as an emergency fund. Its important to keep it that way. Keep your debt levels low so that in case of a real emergency, you’ll still have plenty of credit line available to get yourself out of a jam quickly.
- Pay Your Bills On Time
Just because you pay your bills with a debit card doesn’t mean your bill paying habits won’t affect your credit score, this is a common misconception. Credit bureaus are creating scores for “no credit people”, this means paying your cable bill, your rent payment, parking tickets, and whatever else is of paramount importance. Because most students have little to no credit, paying bills late can ruin your credit score and make life more difficult down the road.
The Best Credit Cards For Students Can Help Your Credit
The Best credit cards for students are the ones that make life easier not harder. Find a credit card with no annual fee, a reasonable interest rate, a quality reward system, and other incentives that compliment the college lifestyle. We always say its never to early invest, its never to early to start building credit either. Having a quality credit score before graduation can make the employment checks, housing rentals, and other payments a much easier process as you transition into the real world.