A student credit card caters for college and university students who don’t have the income and credit score needed to be approved for a normal credit card. So if you are a student, please go to this article and get informed on the best credit card to choose.
Simply put, a credit card is a tool for delaying payment for the stuff you buy. The credit card company lends you the money, and you pay them back at a later date, typically with additional interest.
As with most loans, the amount of interest you pay increases depending on how long you take to repay. But you can also pick the best credit card and it could be 0% for several weeks (or even months).
However, this helps with budgeting. There are other key benefits too, as we’ll explore below, without neglecting the pitfalls.
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What is a student’s credit card?
Student credit cards usually have lower credit limits, higher APRs, and they also offer fewer rewards. However, used in the right way, student credit cards can be a great way to manage your finances and build your credit score.
Credit cards can provide several benefits for students, such as flexibility with spending, help with budgeting, and also building a credit history which will help later in life, including getting a mortgage.
If you use them wisely, they can be a useful asset, and you can also make them work to your advantage by gaining cashback and loyalty points.
But credit cards also come with risks your debt could grow and interest charges can be high if you don’t pay off what you owe.
10 Best Credit Cards for College Students
Student credit cards are cards intended for use by college students who are new to credit. The best credit cards for students offer $0 annual fees, give at least 1% back in rewards on all purchases.
Also, report to all 3 major credit bureaus each month. Here are the 10 best credit cards for college students for you:
1. Bank of America Cash Rewards Credit Card for Students
The Bank of America Cash Rewards Credit Card for Students earns U.S. News’ Best Credit Cards Award of 2021 for student credit cards. However, they selected the award winner for each category based on 2020 credit card data.
The Bank of America Cash Rewards Credit Card for Students offers several benefits to help students manage their budgets, such as no annual fee and up to 3% cashback.
The Bank of America Cash Rewards Credit Card for Students offers secure chip card and digital wallet technologies, online and mobile banking account alerts, and optional overdraft protection.
Although some other credit cards offer higher rewards rates in certain categories. So, this card offers consistent earnings on every purchase.
Bank of America Cash Rewards Credit Card for Student’s card review: With appealing bonus categories and additional benefits to help cardholders develop good money habits, the Bank of America Cash Rewards Credit Card for Students is ideal for student spenders.
• Annual Fee: $0
‣ Intro Bonus: $200
• APR: 13.99% to 23.99%, based on your creditworthiness
Why You Should Choose This Card
The Bank of America Cash Rewards Credit Card for Students has so many benefits that is why we chose this; Here are some benefits attached to this credit card for students:
‣ Earns 3% cashback into a category of your choice
• Offers a 15-month 0% APR on purchases and balance transfers
‣ Charges no annual fee
Their Rewards points
1. This card offers 3% cash back in a category of your choice, including gas, online shopping, travel, dining, drugstores, and home improvement and furnishings.
2. 2% cash back at grocery stores and wholesale clubs and 1% cashback on all other purchases.
3. The 3% and 2% cashback earnings are eligible for up to $2,500 in the combined choice category, grocery store, and wholesale club purchases each quarter (then 1%). Rewards don’t expire.
4. Credit Score Access: Cardholders also receive access to their monthly FICO credit score for free. After you opt in to the credit score program, they update your FICO score every month and you also receive tips and advice on how to maximize your credit score.
5. Additional Protections: The Bank of America Cash Rewards Credit Card for Students offers a variety of protections to save you money and keep your credit safe.
6. There is a $0 liability guarantee for fraudulent transactions. You’ll get account alerts on your card balance and when payments are due. And overdraft protection is available when you link your eligible Bank of America checking account to your credit card.
● Visit Here for More Details and Apply.
2. Discover it Student Cash Back Card
The Discover it® Student Cash Back is a rare beast among student cards, offering generous cash-back rewards with an annual fee of $0. And even with no credit history at all, you may qualify.
Discover it® Student Cash Back: Basics
• Card Type: College student.
‣ Annual fee: $0.
Bonus: INTRO OFFER: Unlimited Cashback Match only from Discover. Discover will automatically match all the cash back you’ve earned at the end of your first year!
So you could turn $50 cashback into $100. Or turn $100 into $200. There’s no minimum spending or maximum rewards. Just a dollar-for-dollar match.
Rewards: You’ll earn 5% cash back in categories that change every three months, on up to $1,500 in spending per quarter when you activate, and 1% back on everything else.
APR: 0% intro APR on purchases for 6 months and 10.99% intro APR on Balance Transfers for 6 months, and then the ongoing APR of 12.99% — 21.99% Variable APR.
Foreign transaction fee: None.
● Visit Here for More Details and Apply
3. Discover It Student Chrome Card
This student card earns 2% cash back on up to $1,000 per quarter in combined spending on gas and at restaurants, plus 1% on everything else.
With healthy rewards and no FICO credit history requirement, the Discover it® Student chrome is a generous exception to many other student credit cards.
The $0-annual-fee card features straightforward rewards, making it an outstanding choice for students. It earns 2% cash back at gas stations and restaurants on up to $1,000 in combined quarterly purchases and 1% on all other purchases.
Its introductory offers and good grade rewards can also stretch your student budget enough to cover a trip to the movies or a dinner out. Among student credit cards, the Discover it® Student chrome is an overachiever, and it rewards you for being one, too.
Discover it® Student chrome Card: Basics and benefits
• Card Type: College student.
‣ Annual fee: $0.
Sign-up bonus: INTRO OFFER: Unlimited Cashback Match only from Discover. Discover will automatically match all the cash back you’ve earned at the end of your first year!
So you could turn $50 cashback into $100. Or turn $100 into $200. There’s no minimum spending or maximum rewards. Just a dollar-for-dollar match.
Their Rewards Points
1. 2% cash back at gas stations and restaurants on up to $1,000 in combined purchases per quarter.
2. 1% cashback on all other purchases.
3. They can redeem cash back in any amount for a statement credit, direct deposit, a store credit at select merchants, including Amazon or PayPal Credit. If you opt to redeem for gift cards or instant certificates from Discover partners, you’ll need a minimum of $5 in rewards first.
● Visit Here for More Details and Apply.
4. Chase Freedom Student Credit Card
It earns 1% cash back on purchases. And with responsible use, you may also qualify for “Good Standing” rewards, a potential credit limit increase, and perhaps eventually, access to a higher-tier Chase card. Terms apply.
For products in its class, the $0-annual-fee Chase Freedom Student credit card gets good marks, thanks to its credit-building features, solid incentives, and potential upgrade path to higher-end Chase cards.
While you must be a student to qualify, the card’s underwriting is friendly to those with thin or nonexistent credit files. It’s the only starter credit card Chase offers.
By comparison, other rewards-earning cards from Chase typically require at least good credit (FICO scores of 690 or above) a top bar to meet for credit newbies.
With responsible card use, you may qualify for “Good Standing” incentives, a potential credit limit increase, and perhaps a product change to an even better Chase card after you graduate.
Still, it’s possible to find richer ongoing rewards on other student credit cards, and this card charges a foreign transaction fee, meaning it’s not ideal if you’re studying abroad.
Chase Freedom® Student credit card: Basics
• Card Type: College student.
‣ Annual fee: $0.
• Bonus: $50 Bonus after first purchase made within the first 3 months from account opening.
‣ Rewards: 1% cashback on all purchases.
● Visit Here for More Details and Apply
5. Capital One Secured Credit Card
Unlike most cards that require a cash security deposit, applicants may qualify for a credit limit larger than their deposit.
Pulling together the money for a security deposit can be a major hurdle in getting a secured credit card, one of the best tools for building or rebuilding your credit.
The Capital One Platinum Secured Credit Card makes deposits a little less daunting, and that’s a big reason it’s one of NerdWallet’s favorite secured cards.
With an annual fee of $0 and a handful of features of special interest to people working on improving their credit score, the Capital One Platinum Secured Credit Card is a solid option for building credit.
Capital One Platinum Secured Credit Card: Basics
• Card type: Secured.
‣ Annual fee: $0.
• Interest rate: The ongoing APR is 26.99% Variable APR.
‣ Deposit requirement: Get a $200 credit line with an initial deposit of $49, $99 or $200, for those who qualify. You can deposit more money before your account opens to increase your credit limit up to a maximum of $1,000.
Rewards: None.
Foreign transaction fees: None.
● Visit Here for More Details and Apply
Who You Should Apply for a Students 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 (or might not) 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 says “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 don’t 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 deal-breaker. They designed student credit cards for people with little or no credit history. If you have bad credit because of missed payments or other missteps, you probably won’t qualify for a student card on your own. In that case, look at a card specifically designed for people with bad credit.
Other Alternative Credit Card for Students (and options for Non-Students)
If you’re under 21 and can’t qualify on your own: Have a parent add you as an allowed user on one of their cards. Allowed user status can help you build a credit history.
You’ll get a card with your name on it you can use for purchases, but your parent is legally responsible for the debt.
If you’re over 21 and still have trouble qualifying: Even with a full-time income, it’s hard to qualify for a traditional credit card if you lack a credit history.
Some startup companies have offered credit cards for people with no credit or limited credit. These issuers use alternative methods to evaluate applications looking at income, employment status and assets, rather than credit history.
Secured credit cards are another excellent option. They’re easier to qualify for because they require a security deposit, which reduces the risk for credit card issuers. Use one to build a credit history, then move up to a better card. See our best-secured credit cards.
If you can’t clear any of these hurdles and you want to build credit: some rent-reporting services will report your rent payments to credit bureaus for a fee. It can be more affordable than coming up with a deposit for a secured credit card.
Being able to prove a good payment history might even help you qualify for 10 Best Credit Cards for College Students in the future.
If you’ve already established credit and have independent income: Consider bypassing student cards entirely. You might qualify for a credit card that offers better rewards, a generous sign-up bonus, or lower interest.
If you don’t yet meet the criteria for such cards, you can look forward to these options once you establish good credit which will be among the top 10 Best Credit Cards for College Students.
Read Also How to Compare different Credit Cards
What to Do With Your Credit Cards After Graduation
Once you boost your credit score into the well-to-excellent range, you’re more likely to be approved for regular, non-student credit cards with richer rewards and enhanced features.
After you graduate and begin working (or move on to graduate school), consider your options with your student credit card:
1. Keep using it. In most cases, you can hold onto your student card even after you graduate. If there’s no annual fee on the card, there’s no harm in keeping the account open and continuing to use it. However, a different card might provide better rewards or a lower interest rate.
2. Upgrade it. Ask your issuer whether you can switch your account to a different card through a so-called product change. Doing so allows you to move to a card that better suits your needs while keeping the account open. That’s beneficial to your credit score because it helps preserve the length of your credit history.
3. Replace it. If you’re paying an annual fee on a student card you don’t plan to continue using, and the issuer won’t upgrade you, you’re probably better off applying for a better card and (once approved) closing the student card account.
4. Keep it in a drawer. If you can’t (or choose not to) upgrade the card but you aren’t paying an annual fee, it’s smart to keep the account open even after you apply for other cards. Your credit score will benefit.
Use a simple “autopay and everyday” strategy to keep your account active with one purchase or several throughout the year.
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