As a student, selecting the right credit card is an important step towards building a solid financial foundation. The right card can help you establish credit, earn rewards, and manage your expenses.
Here’s a detailed look at the best student credit cards available, highlighting their features, benefits, and potential drawbacks to help you make an informed decision.
Why Get a Student Credit Card?
Building Credit History
A student credit card helps establish your credit history, which is crucial for future financial endeavors such as renting an apartment, buying a car, or securing a loan.
Learning Financial Responsibility
Using a credit card responsibly teaches financial discipline. It helps you manage expenses, budget effectively, and understand the importance of timely payments.
Earning Rewards
Many student credit cards offer rewards like cashback, travel points, or discounts, providing additional value for your everyday spending.
Top Student Credit Cards
1. Discover it® Student Cash Back
Key Features
- Rewards: 5% cashback on rotating categories (up to the quarterly maximum) and 1% on all other purchases.
- Sign-up Bonus: Cashback match at the end of the first year.
- Fees: No annual fee and no foreign transaction fees.
- APR: Variable APR, competitive rates.
- Other Benefits: Free FICO credit score monitoring, social security number alerts, and free overnight card replacement.
Pros
- Generous cashback on rotating categories.
- First-year cashback match effectively doubles your rewards.
- No annual or foreign transaction fees.
Cons
- Rotating categories require activation and have spending limits.
- High APR if carrying a balance.
2. Journey® Student Rewards from Capital One
Key Features
- Rewards: 1% cashback on all purchases, increasing to 1.25% for on-time payments.
- Sign-up Bonus: None.
- Fees: No annual fee and no foreign transaction fees.
- APR: Variable APR, competitive rates.
- Other Benefits: Access to higher credit limits after making your first five monthly payments on time, and CreditWise for free credit score monitoring.
Pros
- Simple, straightforward rewards program.
- On-time payment bonus encourages responsible credit use.
- No annual or foreign transaction fees.
Cons
- Lower cashback rate compared to other cards.
- No sign-up bonus.
3. Bank of America® Travel Rewards Credit Card for Students
Key Features
- Rewards: Unlimited 1.5 points per dollar spent on all purchases.
- Sign-up Bonus: 25,000 online bonus points if you make at least $1,000 in purchases in the first 90 days of account opening.
- Fees: No annual fee and no foreign transaction fees.
- APR: Variable APR, competitive rates.
- Other Benefits: No expiration on points, travel and emergency assistance services, and free FICO credit score access.
Pros
- Unlimited rewards points on all purchases.
- Attractive sign-up bonus.
- No annual or foreign transaction fees.
Cons
- Points can only be redeemed for travel or statement credits.
- No higher rewards categories.
4. Deserve® EDU Mastercard for Students
Key Features
- Rewards: 1% cashback on all purchases.
- Sign-up Bonus: Amazon Prime Student subscription statement credit.
- Fees: No annual fee and no foreign transaction fees.
- APR: Variable APR, competitive rates.
- Other Benefits: Cell phone protection, no SSN required for international students, and access to MasterCard Platinum benefits.
Pros
- Ideal for international students without a Social Security number.
- Amazon Prime Student subscription credit.
- No annual or foreign transaction fees.
Cons
- Lower cashback rate compared to other cards.
- No higher rewards categories or rotating categories.
5. Discover it® Student Chrome
Key Features
- Rewards: 2% cashback at gas stations and restaurants (up to $1,000 in combined purchases each quarter) and 1% on all other purchases.
- Sign-up Bonus: Cashback match at the end of the first year.
- Fees: No annual fee and no foreign transaction fees.
- APR: Variable APR, competitive rates.
- Other Benefits: Free FICO credit score monitoring, social security number alerts, and free overnight card replacement.
Pros
- Higher rewards rate for gas and restaurant purchases.
- First-year cashback match effectively doubles your rewards.
- No annual or foreign transaction fees.
Cons
- Spending cap on higher rewards categories.
- High APR if carrying a balance.
Choosing the Right Student Credit Card
Assess Your Spending Habits
Evaluate where you spend most of your money. If you frequently spend on gas and dining, a card like the Discover it® Student Chrome would be beneficial. For broader everyday purchases, the Journey® Student Rewards from Capital One might be a better fit.
Consider Rewards and Bonuses
Look at the rewards programs and sign-up bonuses. If you’re interested in maximizing cashback, the Discover it® Student Cash Back card offers significant rewards with its rotating categories and first-year cashback match.
Evaluate Fees and APR
Check for annual fees, foreign transaction fees, and the APR. All the cards listed above have no annual or foreign transaction fees, but APRs vary. Aim to choose a card with the lowest possible APR, especially if you plan to carry a balance.
Additional Benefits
Consider additional card benefits like credit score monitoring, cell phone protection, and travel assistance. These features can provide added value beyond the basic rewards.
Conclusion
Choosing the right student credit card involves understanding your spending habits, evaluating rewards programs, and considering fees and additional benefits. Each card offers unique advantages, whether it’s the Discover it® Student Cash Back’s generous rewards, the Journey® Student Rewards’ straightforward cashback, the Bank of America® Travel Rewards’ travel points, the Deserve® EDU Mastercard’s benefits for international students, or the Discover it® Student Chrome’s gas and restaurant rewards.
By carefully comparing these top student credit cards, you can select the one that best fits your financial needs and goals, helping you build a strong credit history while enjoying valuable rewards and benefits.
Source: Collegesintheuk.com