What are the Best Credit Cards for Students?
Best Credit Cards for Students: A Comprehensive Guide
As a student, it's important to have a credit card that not only helps you build credit, but also offers rewards and benefits that fit your lifestyle. With so many options on the market, it can be overwhelming to choose the right one. In this guide, we'll break down thebest credit cards for studentsand what makes them stand out.
1. Discover it Student Cash Back
The Discover it Student Cash Back card is a popular choice among students for its generouscash back rewardsandno annual fee. Cardholders earn 5% cash back on rotating categories, such as gas and restaurants, and 1% on all other purchases. Discover also offers a unique reward at the end of the first year, where they match all the cash back earned during that time. This card also offers perks such as a free FICO credit score and no foreign transaction fees.
2. Journey Student Rewards from Capital One
The Journey Student Rewards from Capital One is another great option for students looking to build credit while earning rewards. Cardholders earn 1% cash back on all purchases, with the opportunity to earn up to 1.25% when paying on time. This card also offers afree credit scoreand no foreign transaction fees. One unique feature is that Capital One offers to increase the credit limit after making the first five monthly payments on time.
3. Citi Rewards+ Student Card
The Citi Rewards+ Student Card is a great choice for students who want to earn rewards on everyday purchases. Cardholders earn 2 ThankYou points per dollar spent at supermarkets and gas stations, and 1 point per dollar on all other purchases. What sets this card apart is that Citi rounds up rewards to the nearest 10 points, making it easier to earn and redeem rewards. This card also has no annual fee and offers a free FICO credit score.
4. Bank of America Cash Rewards for Students
The Bank of America Cash Rewards for Students offers cash back rewards and a unique sign-up bonus. Cardholders earn 3% cash back in a category of their choice, such as online shopping or dining, and 2% cash back at grocery stores and wholesale clubs. This card also offers a $200 cash back bonus after spending $1,000 in the first 90 days of opening the account. This card has no annual fee and offers a free FICO credit score.
Tips for Applying for a Student Credit Card
When applying for a student credit card, there are a few things to keep in mind to maximize your chances of approval and avoid common pitfalls. Here are some tips:
1. Build your credit history: If you have little to no credit history, consider starting with a secured credit card or becoming an authorized user on a parent's credit card to build credit before applying for your own card.
2. Compare offers: Don't settle for the first card that comes your way. Compare offers from different issuers to find the best fit for your needs.
3. Read the fine print: Be sure to read the terms and conditions carefully, including the interest rate, fees, and rewards program.
4. Use your card responsibly: Make on-time payments, keep your balance low, and avoid overspending to build a positive credit history.
Saving Money with a Student Credit Card
In addition to earning rewards, there are other ways to save money with a student credit card:
1. Take advantage of student discounts: Many credit cards offer discounts on popular brands and retailers, so be sure to check for offers before making a purchase.
2. Use credit card rewards to pay off student loans: Some credit cards offer the option to redeem rewards as a statement credit towards student loans, helping you pay off debt faster.
3. Avoid unnecessary fees: Be mindful of fees such as late fees and over-limit fees, and try to avoid them by making payments on time and keeping your balance low.
Choosing the right credit card as a student can help you establish good credit habits and earn rewards for your spending. By comparing offers, reading the fine print, and using your card responsibly, you can make the most of your credit card. Whether you're looking for cash back rewards or points towards travel, there's a card out there that's right for you.