Many new things appear in the life of people when they become college students. It is a time of growing up and a period in life when the responsibility of independent living appears. This also applies to the financial side of life. A lot of people at this time get their first credit card and learn to handle finances and build their credit. The beginning of a credit history can have a significant impact on future success and opportunities in life.
That is why it is worth to use best credit card for students to secure a successful financial future. To help deal with credit cards for college students, we have prepared this guide.
Should I get a credit card?
A credit card can be an excellent tool for you to build your good credit, which will have a significant impact on your life and on the opportunities that will appear in it. This impact will be positive only if you successfully build and maintain a high level of your credit rating. You must carefully select the lender and the type of credit card that best suits you in your conditions and lifestyle. There are many different offers of credit cards with a variety of terms.
A high interest rate can be unbearable for students, so when choosing the best credit card for students you need to pay attention to all interest and payments that need to be paid. If you choose a credit card with acceptable conditions, then by building a good credit in the future you will receive more favorable conditions from lenders.
Types of credit cards most suitable for college students
Not all types of credit cards will be relevant for college students. Some of them will cost you too much, and you will not be able to fully use the capabilities of others. Therefore, we made a selection of types of credit cards that best fit the needs of college students.
- The Discover it Student Cash Back Card
This credit card every quarter provides rewards for making purchases and payments with its help up to 5% cashback for a certain category of expenses. You will need to spend $ 500 a quarter on this particular category in order to get the maximum benefit from it. When spending on goods and services from other categories the owner of the Discover it Student Cash Back Card will receive 1% reward in the form of cashback.
In addition, The Discover it Student Cash Back Card offers the first six months of free use at an annual interest rate of 0%. Ideal for those who will deal with credit cards for the first time, as it is possible to have time to correct the mistakes made during these first six months.
- The Discover it Student Chrome Card
Chrome Card for students also gives you the opportunity to receive cashback rewards for using this card when paying in restaurants and buying fuel for a car. With spending up to a thousand dollars per quarter for these categories you will receive 2% cashback to your special bonus account and just like using the Discover it Student Cash Back Card 1% of the cost for all other categories.
In addition to stimulating purchase, this credit card will encourage college students to also study better. If your GPA score is above 3, then you will receive a loan of $ 20. The Discover it Student Chrome Card, just like the Discover it Student Cash Back Card, provides the first six months of free use, after which it sets a variable interest rate.
- The Deserve Edu Mastercard
Deserve Edu Mastercard provides excellent loan facilities for international students without American social insurance who are enrolled in one of the US educational institutions, as well as for those who have not large, or even completely absent credit history. This way a credit card provides rewards from any kind of purchases and payments in the amount of 1% cashback. An added bonus will be to get a subscription to Amazon Prime Student in the amount of $ 49.
For those who have a fairly good credit history and social insurance this offer is not the most attractive, since the reward is rather low and the interest rate is slightly more than 20%. For international students, people with a small credit history or a low credit rating, this would be the best credit card for students option.
- Travel Rewards Card by the Bank of America
Travel Rewards Card offers to earn 1.5 points for every dollar spent for those, who are going to travel a lot. Points earned in this way can be used to pay for hotel rooms, buying air tickets and other tickets for trips using various means of transport.
For registering a card, when you spend $ 1,000 in the first 3 months you will receive 20,000 points, although such expenses in the short term can be overwhelming for college students. There is a chance to use this opportunity by registering a Travel Rewards Card at the very beginning of the semester, when you have a lot of initial expenses for tuition and accommodation. Points from using The Bank of America Travel Rewards Card can be used as a gift card. The big advantage of this card is that you will not pay a commission for transactions in other countries.
- The Journey Student Rewards Card
This card from Capital One encourages students to pay off their debts on time, increasing the cashback reward from the amount of purchases for each timely payment. The basic reward is 1%, but this percentage increases and you earn more when you close your debt on time every month. You can also get an increase in the available credit limit by making the first five monthly payments on time.
This way brings students the skills to properly handle their finances and obligations, which will help them in the future to build a great credit and have great financing opportunities. On the other hand, The Journey Student Rewards Card has a fairly high floating interest rate, which can reach more than 26%. This can make it difficult for you to pay off your debt in time. The initial credit limit is quite low and amounts to only $ 300. This may not be enough to cover all necessary expenses at the beginning of studying.
- The Citi ThankYou Preferred Card
The preferred Citi ThankYou card offers active students to earn points for every dollar spent in entertainment or catering establishments, the owner of such a card will receive two points. For all other expenses one point per dollar will be awarded. Points earned in this way can be used to purchase tickets for various events and concerts, also they can be used as gift cards.
More points can be obtained by spending $ 500 for the first three months of using the card. For this you can get 2500 bonus points. The disadvantages of The Citi ThankYou Preferred Card include the presence of a commission when paying abroad, as well as the initially low level of remuneration.
There are many details that should be considered when choosing a credit card. This is not easy, especially if you do not have experience with them. Visit our blog and find out the maximum information you need regarding credit cards. You can also write to us and get full advice from our financial experts.