Breaking Down the Best Student Credit Cards of the Year
As a student, managing finances can be a daunting task. With the numerous expenses that come with college life, it’s crucial to have a reliable source of funds. This is where student credit cards come in handy. However, with so many options available in the market, it can be overwhelming to choose the best one. That’s why we’ve taken the initiative to break down the top student credit cards of the year for you. From cashback rewards to no annual fees, we’ve analyzed the features and benefits of each card to help you make an informed decision. So, whether you’re a freshman or a senior, read on to discover the best credit card options that can help you build your credit while enjoying some great perks along the way.
Benefits of Having a Student Credit Card
As a student, having a credit card can provide several benefits to you. Firstly, it can help you build your credit score. By using your credit card responsibly, you can establish a positive credit history, which can be beneficial when you need to apply for a loan or a mortgage in the future. Secondly, using a credit card can help you manage your finances better. With a credit card, you can keep track of your expenses and monitor your spending habits. Thirdly, many student credit cards offer rewards and perks, such as cashback or discounts on purchases, which can help you save some money.
However, it’s essential to use your credit card responsibly and avoid overspending, as credit card debt can accumulate quickly and become hard to pay off. Remember to pay your credit card bills on time and in full each month to avoid accruing interest and late fees.
Factors to Consider When Choosing a Student Credit Card
Before choosing a student credit card, it’s crucial to consider several factors. Firstly, check if the credit card has an annual fee or not. Some credit cards come with no annual fees, while others charge a fee that can range from $50 to $100. Secondly, check the credit limit of the card. The credit limit is the maximum amount of money you can borrow on the card. Thirdly, look for rewards and perks that the credit card offers, such as cashback, discounts, or points that can be redeemed for rewards. Fourthly, check the interest rate of the credit card. The interest rate is the percentage of the balance that is charged as interest. Finally, consider the credit card issuer’s reputation and customer service.
Top Student Credit Cards of the Year
- Discover it Student Cash Back
- Citi Rewards+ Student Card
- Bank of America Cash Rewards for Students
- Journey Student Rewards from Capital One
- Deserve EDU Mastercard
- Discover it Chrome for Students
- Wells Fargo Cash Back College Card
Detailed Review of Each Card
### Discover it Student Cash Back
The Discover it Student Cash Back credit card is a great option for students who want to earn cashback rewards. The card offers 5% cashback on rotating categories, such as restaurants, grocery stores, and gas stations, and 1% cashback on all other purchases. Additionally, Discover matches all the cashback you earn at the end of your first year, making it a lucrative option. The card comes with no annual fees and a $20 statement credit each school year if your GPA is 3.0 or higher. The interest rate ranges from 12.99% to 21.99%, depending on your creditworthiness.
### Citi Rewards+ Student Card
The Citi Rewards+ Student Card is a unique credit card that rounds up your rewards to the nearest 10 points on every purchase. For example, if you make a purchase of $3, the card will round up your rewards to 10 points. Additionally, the card offers 2x points on supermarkets and gas stations and 1x points on all other purchases. The card comes with no annual fees and a 0% introductory APR for the first 7 months. After that, the interest rate ranges from 14.49% to 24.49%, depending on your creditworthiness.
### Bank of America Cash Rewards for Students
The Bank of America Cash Rewards for Students credit card offers 3% cashback on a category of your choice, such as gas, online shopping, or dining, and 2% cashback on groceries and wholesale clubs. The card also offers 1% cashback on all other purchases. The card comes with no annual fees and a $200 cash rewards bonus after spending $1,000 in the first 90 days. The interest rate ranges from 13.99% to 23.99%, depending on your creditworthiness.
### Journey Student Rewards from Capital One
The Journey Student Rewards from Capital One credit card is designed to help students build their credit history. The card offers 1% cashback on all purchases and an additional 0.25% cashback when you pay on time. The card comes with no annual fees and a $60 streaming credit when you use your card to pay for a streaming service subscription. The interest rate ranges from 26.99% to 26.99%, depending on your creditworthiness.
### Deserve EDU Mastercard
The Deserve EDU Mastercard is a credit card that does not require a Social Security number to apply, making it a great option for international students. The card offers 1% cashback on all purchases and comes with no annual fees. Additionally, the card offers up to $5,000 in insurance coverage for damaged or stolen cell phones when you pay your monthly bill with your card. The interest rate is 18.74%.
### Discover it Chrome for Students
The Discover it Chrome for Students credit card is a great option for students who want to earn cashback rewards on their everyday purchases. The card offers 2% cashback on gas stations and restaurants up to $1,000 in combined purchases each quarter and 1% cashback on all other purchases. Additionally, Discover matches all the cashback you earn at the end of your first year, making it a lucrative option. The card comes with no annual fees and a $20 statement credit each school year if your GPA is 3.0 or higher. The interest rate ranges from 12.99% to 21.99%, depending on your creditworthiness.
### Wells Fargo Cash Back College Card
The Wells Fargo Cash Back College Card is a credit card designed for students who want to earn cashback rewards while building their credit history. The card offers 3% cashback on gas, grocery, and drugstore purchases for the first six months and 1% cashback on all other purchases. The card comes with no annual fees and a 0% introductory APR for the first six months. After that, the interest rate ranges from 11.15% to 21.15%, depending on your creditworthiness.
Compare Cards Based on Features and Benefits
When you compare student credit cards, it’s essential to consider the features and benefits that each card offers. The Discover it Student Cash Back and Discover it Chrome for Students credit cards offer lucrative cashback rewards and a $20 statement credit each school year if your GPA is 3.0 or higher. The Citi Rewards+ Student Card rounds up your rewards to the nearest 10 points on every purchase, while the Bank of America Cash Rewards for Students credit card offers a $200 cash rewards bonus after spending $1,000 in the first 90 days. The Journey Student Rewards from Capital One credit card offers an additional 0.25% cashback when you pay on time, while the Deserve EDU Mastercard does not require a Social Security number to apply. The Wells Fargo Cash Back College Card offers 3% cashback on gas, grocery, and drugstore purchases for the first six months.
How to Apply for a Student Credit Card
To apply for a student credit card, you’ll need to meet the eligibility criteria set by the credit card issuer. Typically, you’ll need to be a student enrolled in a college or university, have a good credit score, or have a cosigner who can provide a guarantee for your debts. You can apply for a student credit card online or through the credit card issuer’s mobile app. You’ll need to provide your personal and financial information, such as your name, address, income, and Social Security number.
Tips for Using a Student Credit Card Responsibly
To use your student credit card responsibly, it’s essential to follow these tips:
– Set a budget and stick to it.
– Pay your credit card bill on time and in full each month.
– Avoid overspending and only use your credit card for necessary expenses.
– Monitor your credit card activity and report any fraudulent charges immediately.
– Don’t share your credit card information with anyone.
– Avoid using your credit card for cash advances or gambling.
– Keep your credit utilization rate low by using only a small percentage of your credit limit.
Common Misconceptions About Student Credit Cards
Many students have misconceptions about student credit cards, such as:
– You need a good credit score to get a student credit card.
– Student credit cards have high-interest rates and fees.
– Using a credit card will hurt your credit score.
– You can only use a credit card for emergencies.
– You don’t need to pay your credit card bill on time if you’re a student.
These misconceptions are not true. You can get a student credit card even if you have no credit history or a low credit score. Many student credit cards come with no annual fees and offer rewards and perks. Using a credit card responsibly can help you build your credit score. You can use a credit card for necessary expenses and pay your credit card bill on time to avoid accruing interest and late fees.
Final Thoughts on Student Credit Cards
In conclusion, student credit cards can provide several benefits to students, such as helping them build their credit history, managing their finances better, and earning rewards and perks. When choosing a student credit card, it’s crucial to consider the features and benefits that each card offers. Remember to use your credit card responsibly and avoid overspending to avoid accruing debt. By following these tips and using your student credit card wisely, you can establish a positive credit history and enjoy the benefits of a student credit card.