Navigating the world of credit cards can be daunting, especially for students. However, choosing the best credit cards for students can provide significant benefits, including building a credit history, earning rewards, and learning financial responsibility. This guide will highlight some top choices and tips for maximizing their benefits.
Why Students Need Credit Cards
For students, a credit card is more than just a payment tool. It’s a stepping stone to financial independence. The best credit cards for students offer:
- Credit Building: Establishing a credit history early can lead to better loan rates and financial opportunities in the future.
- Financial Education: Using a credit card responsibly teaches budgeting and financial management.
- Rewards and Benefits: Many student cards offer cashback, rewards points, and other perks tailored to young adults.
Factors to Consider When Choosing a Student Credit Card
When selecting the best credit cards for students, consider these factors:
- APR and Fees: Look for cards with low annual percentage rates (APR) and minimal fees.
- Rewards Program: Choose a card that offers rewards for common student expenses like groceries, dining, and gas.
- Credit Limit: A lower credit limit can help prevent overspending.
- Additional Benefits: Features like cashback, travel insurance, and no foreign transaction fees can add value.
- Credit Reporting: Ensure the card reports to all three major credit bureaus to build a comprehensive credit history.
Top Student Credit Cards
Here are some of the best credit cards for students currently available:
1. Discover it® Student Cash Back
The Discover it® Student Cash Back card is highly rated for its generous rewards and student-friendly features.
- Rewards Program: 5% cashback on rotating quarterly categories (up to $1,500 in purchases) and 1% on all other purchases.
- Sign-Up Bonus: Discover matches all the cashback earned in the first year.
- APR: 0% introductory APR for 6 months, then a variable APR applies.
- Annual Fee: $0
- Additional Benefits: Good Grades Reward ($20 statement credit each school year your GPA is 3.0 or higher).
2. Chase Freedom® Student Credit Card
The Chase Freedom® Student Credit Card offers a straightforward rewards program and valuable benefits for students.
- Rewards Program: 1% cashback on all purchases.
- Sign-Up Bonus: $50 bonus after making your first purchase in the first three months.
- APR: Variable APR based on creditworthiness.
- Annual Fee: $0
- Additional Benefits: Credit limit increase after five on-time payments, free credit score access.
3. Capital One SavorOne Student Cash Rewards Credit Card
This card is ideal for students who spend heavily on dining and entertainment.
- Rewards Program: 3% cashback on dining, entertainment, popular streaming services, and grocery stores (excluding superstores like Walmart® and Target®), and 1% on all other purchases.
- Sign-Up Bonus: Earn $100 after spending $100 in the first three months.
- APR: Variable APR based on creditworthiness.
- Annual Fee: $0
- Additional Benefits: No foreign transaction fees, free credit score access.
4. Bank of America® Travel Rewards for Students
For students who travel frequently, this card offers rewards without foreign transaction fees.
- Rewards Program: 1.5 points per dollar spent on all purchases.
- Sign-Up Bonus: 25,000 online bonus points after spending $1,000 in the first 90 days, redeemable for a $250 statement credit.
- APR: 0% introductory APR for 12 billing cycles on purchases, then a variable APR applies.
- Annual Fee: $0
- Additional Benefits: No foreign transaction fees, travel and emergency assistance services.
5. Deserve® EDU Mastercard for Students
The Deserve® EDU Mastercard for Students is excellent for international students who may not have a U.S. credit history.
- Rewards Program: 1% cashback on all purchases.
- Sign-Up Bonus: One year of Amazon Prime Student after spending $500 in the first three billing cycles.
- APR: Variable APR based on creditworthiness.
- Annual Fee: $0
- Additional Benefits: Cell phone protection, no foreign transaction fees.
How to Use Student Credit Cards Responsibly
To make the most of the best credit cards for students, follow these tips:
- Pay Your Balance in Full: Avoid interest charges by paying your balance in full each month.
- Track Your Spending: Use budgeting tools to keep track of your expenses and avoid overspending.
- Take Advantage of Rewards: Use your card for everyday purchases to maximize rewards, but don’t spend more than you can afford to pay back.
- Monitor Your Credit: Regularly check your credit score and report to ensure accurate reporting and identify any potential issues.
- Use Automatic Payments: Set up automatic payments to ensure you never miss a payment.
Real-Life Examples of Student Credit Card Success
- Emily, the Budget-Conscious Student
Emily uses the Discover it® Student Cash Back card for her everyday expenses. She maximizes the 5% cashback categories and was rewarded with a matched cashback at the end of her first year. She also benefited from the Good Grades Reward, which provided a $20 statement credit each year she maintained a GPA of 3.0 or higher. - Jack, the Frequent Traveler
Jack, an international student, chose the Deserve® EDU Mastercard for Students due to its lack of foreign transaction fees. He also enjoyed the cell phone protection benefit, which saved him money when his phone was damaged during a trip. - Sarah, the Dining Enthusiast
Sarah loves dining out and streaming movies. She opted for the Capital One SavorOne Student Cash Rewards Credit Card, earning 3% cashback on her favorite activities. The $100 sign-up bonus was an added perk for her.
Conclusion
Selecting the best credit cards for students can provide a solid foundation for building credit and gaining financial independence. Consider factors such as rewards programs, fees, and additional benefits when choosing a card. The Discover it® Student Cash Back, Chase Freedom® Student Credit Card, Capital One SavorOne Student Cash Rewards Credit Card, Bank of America® Travel Rewards for Students, and Deserve® EDU Mastercard for Students are among the top options available. By using these cards responsibly, students can maximize rewards, build their credit history, and enjoy the benefits of financial independence. Start exploring your options today to find the best credit card for your needs.
