As a student, having a credit card can be a valuable financial tool. It can help you build credit history, manage expenses, and earn rewards. However, with so many credit cards on the market, it can be overwhelming to choose the best one for your needs. In this article, we will discuss the factors to consider when choosing a credit card for students and recommend some of the best options available.
Factors to Consider When Choosing a Credit Card for Students
Before selecting a credit card, it is essential to understand the factors to consider. Here are some of the most important factors to keep in mind:
Interest Rates:
Interest rates are one of the most critical factors to consider when choosing a credit card. The interest rate is the amount charged on your outstanding balance. As a student, it is best to choose a credit card with a low-interest rate, as this will help you avoid accumulating debt and paying high-interest charges.
Fees:
Credit cards may come with various fees, including annual fees, balance transfer fees, and foreign transaction fees. As a student, it is best to choose a credit card with no annual fees, as this will help you save money in the long run.
Rewards:
Credit cards may offer different rewards, including cashback, points, and miles. As a student, it is best to choose a credit card that offers rewards that match your spending habits. For example, if you spend a lot on groceries, you may want to choose a credit card that offers cashback on grocery purchases.
Credit Score:
As a student, you may not have an established credit history. Therefore, it is best to choose a credit card that is designed for students or those with no credit history. These credit cards may have lower credit score requirements and help you build your credit history.
Credit Limit:
The credit limit is the maximum amount of money you can borrow on your credit card. As a student, it is best to choose a credit card with a low credit limit to help you avoid overspending and accumulating debt.
Top Credit Cards for Students
Now that you know the factors to consider when choosing a credit card, let’s look at some of the best credit cards for students:
Discover it Student Cash Back:
The Discover it Student Cash Back credit card is an excellent option for students who want to earn cashback rewards. This credit card offers 5% cashback on rotating categories each quarter, such as gas stations, restaurants, and Amazon.com. Plus, students can earn a $20 statement credit each school year for maintaining a GPA of 3.0 or higher. The Discover it Student Cash Back credit card has no annual fees and offers an introductory 0% APR on purchases for six months.
Bank of America Cash Rewards for Students:
The Bank of America Cash Rewards for Students credit card is another great option for students who want to earn cashback rewards. This credit card offers 3% cashback on gas, online shopping, dining, travel, drug stores, and home improvement/furnishings. Plus, students can earn a $200 cash rewards bonus after spending $1,000 on purchases in the first 90 days. The Bank of America Cash Rewards for Students credit card has no annual fees and offers an introductory 0% APR on purchases for the first 15 billing cycles.
Journey Student Rewards from Capital One:
The Journey Student Rewards from Capital One credit card is designed specifically for students with limited credit history. This credit card offers 1% cashback on all purchases, which can increase to 1.25% cashback when you pay your bill on time. Plus, there are no annual fees, foreign transaction fees, or balance transfer fees. The Journey Student Rewards from Capital One credit card also offers a credit limit increase after five months of on-time payments, helping you build your credit history.
Citi Rewards+ Student Card:
The Citi Rewards+ Student Card is an excellent option for students who want to earn rewards on everyday purchases. This credit card offers 2 ThankYou points per $1 spent at supermarkets and gas stations, up to $6,000 per year. Plus, every purchase is rounded up to the nearest 10 points, allowing you to earn more rewards. The Citi Rewards+ Student Card has no annual fees and offers an introductory 0% APR on purchases for seven months.
Capital One Secured Mastercard:
The Capital One Secured Mastercard is designed for students who want to build or rebuild their credit history. This credit card requires a security deposit, which becomes your credit limit. The Capital One Secured Mastercard reports to all three credit bureaus, helping you build your credit history. Plus, after making your first five monthly payments on time, you may be eligible for a credit limit increase with no additional deposit. The Capital One Secured Mastercard has no annual fees and offers an introductory 0% APR on purchases for the first six months.
If You Want to know About 7 Credit Card Offers with 0% APR Balance Transfer and Zero Balance Fees, you can read here
Conclusion
Choosing the best credit card for students requires careful consideration of several factors, including interest rates, fees, rewards, credit score, and credit limit. Each credit card has its own advantages and disadvantages, so it is important to choose one that matches your spending habits and financial goals. We recommend the Discover it Student Cash Back, Bank of America Cash Rewards for Students, Journey Student Rewards from Capital One, Citi Rewards+ Student Card, and Capital One Secured Mastercard as some of the best credit cards for students. By choosing the right credit card and using it responsibly, you can build your credit history and take control of your finances.
What is the best student credit card?
The best student credit card is one that offers low interest rates, no annual fees, and rewards that match the student’s spending habits. It should also have a low credit limit to help students avoid overspending and accumulating debt. Additionally, the credit card should be designed for students or those with no credit history, with lower credit score requirements. By choosing the right student credit card and using it responsibly, students can build their credit history and take control of their finances.
Do you have to be a student to get a student credit card?
Yes, typically, to get a student credit card, you have to be enrolled in a college or university as a student. Some credit card issuers may also require you to provide proof of enrollment or a valid student ID. However, there are some credit cards designed for individuals with limited or no credit history, which may not require you to be a student. It’s important to check the eligibility requirements of the credit card issuer before applying.
